Singapore Property investor – buyer: Buying a Building-under-construction property

What is the payment schedule when you buy a condo which is still under construction?

The below is a typical payment schedule for the Singapore Property Buyer. (This is not indicative of all cases)

 

 

  1% of the purchase price

           

            Option to purchase.

 

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Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.

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4% of the purchase price – 14 days after Option to purchase.

            Exercise option

Payment of Stamp Duty (~3%)

            28 days from option to purchase

15% of the purchase price

            12 weeks after exercising option to purchase.

 

If the property that you bought is an uncompleted Condominium, then you will have to pay progressively as the building achieves various milestones.

 

10% of purchase price – Timing depends on speed of construction

            Notice of foundation work completion.

 

10% of purchase price

            Notice that reinforced Concrete framework of the unit has been

            completed.

 

5% of the Purchase Price

            Notice that the brick walls of the unit have been completed

 

5% of the purchase price

            Notice that the ceiling of the Unit has been completed.

 

5% of the purchase price

            Notice that the door and window frames are installed and the

            wiring and plastering have been completed.

 

5% of the purchase price

           

            Notice that the car park, roads and drains serving the housing

            project have been completed.

 

25% of the purchase price

            Payable 14 days after notice of vacant possession and the

            Temporary Occupation Permit (TOP) or Certificate of Statutory     

            Completion (CSC) in respect of the unit (or a certified copy

            thereof)

 

            A certificate by the qualified person engaged by the vendor that the

             building and all roads and drainage and sewerage works serving  

             the Housing project have been completed and that the water and

             electricity supplies, and gas supplies (if any) have been connected 

             to the unit.

 

15% of the purchase price

           

             On Completion date. Of which 2% is payable to the vendor (i.e.    

             the developer) and 13% is payable to the Singapore Academy of

             law as stakeholder.

           

             Whether you can afford the condominium or not, buying a

             condominium under construction can be a good way to gradually

             put up the cash for buying a property.

 

Smoothing out Funding of a Private property

            In the case where you have the earning capacity, but you will need

            some time to recover after the initial 20% downpayment. The

            Singapore home loan installment will be lesser at the earlier stages, 

            this enables you to save up and build up your cash reserves as there

            may be many other costs associated with owning a private property.

 

If you are Singapore property investor, if your view is that the property

market will pick up in a few years, buying a property under construction is

similar to buying shares on “Contra”, except that this “contra” gives you

several years of holding “option”.

 

Many speculators like this feature which gives them the chance to finance

a property cheaply and flip the property for a profit.

 

Genuine Home Buyers can get burnt buying a Property Under Construction

 

Due to the ease of financing, holding on to a Building under construction during the early

 

stages can be rather cheap. This means that speculators can easily get in and bid up the

 

prices for genuine buyers, creating a squeeze on the prices.

 

 

 

 

This means that such buyers will tend to end up paying a higher price.

 

How to profit from Property Under Construction?

 

Due to the presence of speculators, when the pressure mounts and when they cannot turn a

 

profit flipping the property and cannot lease the property out and starts to default. You can

 

then stand on the side lines to punish these greedy speculators and pick up the

properties cheaply.

 

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About Property Buyer                                          Contact Property Buyer

www.PropertyBUYER.com.sg 

We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.

Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.

Not Simply Cheap, but what Fits.                                    We Research, You Save! 

Tel:    6100 – 0608

SMS:  9782 – 8606

Email: loans@propertyBUYER.com.sg

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Related posts:

1. Singapore Property Buying: Malaysia’s Construction Cost
2. Singapore Property Buyer – Investor Update July 2009

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About Property BuyerContact Property Buyer
www.PropertyBuyer.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or Singapore Mortgage refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Not Simply Cheap, but what Fits. We Research, You Save!
TEL:   +65 - 6100-0608
SMS:  +65 - 9782-8606
Email: Loans@propertyBUYER.com.sg
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