Singapore Property Investor: Building-under-construction (BUC) condo payment schedule

Singapore Property investor – buyer: BUC Condo payment schedule
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.

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 refinancing, 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 based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel:    6100 – 0608
SMS:  9782 – 8606
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. This is the stage where your home loan is starts to disburse.

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 for 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 create a squeeze on the prices bidding up the prices for genuine buyers.

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.  A lot of these speculations turned out to be

property agents themselves!

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 refinancing, 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 based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
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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