HDB owners who are planning to upgarde to condo from hdb or on the lookout for new launch condo singapore. Must consider the Progressive Payment Scheme. As a a condo Buyers you must pay at various stages of construction under this plan.
The Progressive Payment Scheme allows buyers to pay for a property based on its construction progress. This means that as the construction progresses, so will the buyer's payment deadlines.
When each stage of the construction is finished, the developer will notify the buyer's lawyer and request a progress payment for that stage. Depending on the financing arrangement, the buyer will either pay cash or the bank will make a disbursement.
It is important to note that the payment must be received by the developer within 14 days of receiving the notice, or late payment penalties will apply. A typical condo unit progress payment schedule includes several stages, such as foundation work, structural work, and finish work. Buyers can plan and budget for their property purchase more effectively if they understand the Progressive Payment Scheme.
Below is an illustration of the progressive payment:
I understand that this may be confusing for some, so let me give you a concrete example involving specific numbers to help clarify the process.
Calculating your BUC (building under construction) property's progressive payments is also known as new launch condo Singapore
Assume Mr. and Mrs. upgarder have decided to purchase a $1,000,000 condo unit.
The following is a breakdown of how much they will pay at each stage.
They decide on a unit after attending the preview launch: (they were lucky enough to ballot for a unit that they loved)
5% x $1,000,000 = $50,000 booking fee (paid in cash at the launch)
They both sign the sales and purchase contract. They must also pay stamp duty and legal fees at this point.
Following the developer will issues a Sales and Purchase Agreement: 15% x $1,000,000 = $150,000
14 days after foundation work is completed: 10% x $1,000,000 = $100,000
14 days after the reinforced concrete framework is completed: 10% x $1,000,000 = $100,000
14 days after the partition walls are finished: 5% x $1,000,000 = $50,000
14 days after roofing completion: 5% x $1,000,000 = $50,000
14 days after the completion of the door sub-frames/door frames, window frames, electrical wiring (without fittings), internal plastering, and plumbing: 5% x $1,000,000 = $50,000
14 days after the carpark, roads, and drains for the housing project are finished: 5% x $1,000,000 = $50,000
Upon receipt of the Temporary Occupancy Period and key collection: 25% x $1,000,000 = $250,000
Their new home is awaiting them.
Following the sale's legal completion: 15% x $1,000,000 = $150,000
When navigating the process, it's critical to seek the advice of an experienced property agent singapore who can guide you through it.
Read more on our other articles about 2023 is it a right time to upgarde?
Do you need help understanding the 10 progressive payments? Find out all the pitfalls homeowners face when they try to purchase a new launch condo from JJ wong.
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JJ Wong is the founder of MOPUpgraders.sg and has been a Property Wealth Planner in the real estate market for the past 6 years. He has helped many clients achieve their aspirations with the right financial planning and sound timeline planning. He is the man behind upgrading case studies of those who are holding on property under 10 years.