Singapore Property investor – buyer: Buying a Building-under-construction property
August 25, 2009 by property
Filed under Singapore property investor - buyer
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)
Option to purchase.
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.
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Email: loans@propertyBUYER.com.sg
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.
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
Related posts:
- Singapore Property Buying: Malaysia’s Construction Cost
- Singapore Property Buyer – Investor Update July 2009
- Singapore Property Investor Buyer Update: June 2009