You’ve discussed this thoroughly with your spouse.
You’ve made up your mind to start hunting for properties in the market and what better way to start… than to visit new launch condo showflats?
But hold your horses…
Before you even step foot into one of those awesome looking show units, there are some mandatory prep work you must do.
Now you have to understand, that units at showflats are sold on a first-come-first-served basis.
So if you go unprepared and not knowing what to expect… It is extremely likely that your choice units might be sold to someone else who came absolutely prepared with their budget and financing all settled.
And instead of listing it down in point form…
Here’s an infographic prepared by the good people at SG Property Reviews that shows you exactly what you should do before you even head down to any property showroom.
Step 1 – Know How Much CPF You Can Use
If you know that you must use CPF for your property purchase, why leave it till the last minute to find out?
Log in to your CPF account at www.cpf.gov.sg through your SingPass and find out exactly how much you are able to use for the property purchase.
Doing so goes a long way in your budget planning and makes sure that there are no “surprises” when it’s time to put pen to paper.
Step 2 – Securing Your Bank Loan
Now that your CPF is settled… you’d have to ensure the banks are willing to lend you the funds towards your purchase.
Especially in today’s market, with the enforcement of TSDR and MSR (if you are buying an EC), its has become harder to get loans approved.
So get prepared by applying for an Approval In Principal (or AIP for short).
You can do so by approaching any banker or mortgage broker to get it done for you.
Best of all… it’s free!
Step 3 – Know Your Stamp Duty Obligations
Unfortunately, with the current cooling measures in place, gone are the days when you can purchase multiple properties without worry of huge amounts of stamp duty payable.
If you happen to be buying your second property or do not own a Singapore Citizenship, then you’d fall into the Additional Buyer’s Stamp Duty Bracket.
Step 4 –Know How The Normal Progressive Payment Scheme Works
Almost all new launch condos have standardized in using this payment scheme… which is why it is important to understand how it works to plan your cash flow in advance.
The last thing you’d want is a miscalculation and a case of insufficient funds that will throw your entire transaction into a complicated mess.
After confirming your choice unit, you’d need to ;
- Make a payment of 5% in cash to the developer’s project account in exchange for the Option To Purchase (OTP).
- Within the next 2 weeks, the developer will dispatch the Sales and Purchase Agreement (S&P) to you or your appointed lawyers.
- You will then have 3 weeks from the date of receiving the S&P to exercise the option.
- The Stamp Duty and ABSD (if applicable) is payable 14 days from the date of exercise.
- The remaining 15% portion of the down payment is then payable within 8 weeks from the initial OTP issue date.
Step 5 – Know The Balloting Process
Typically, most developers will opt to have a pre-launch period of 1 to 2 weeks before its official launch day where they will allow buyers to preview the condo showflat and view the various unit sizes and finishings.
And on the launch day itself, buyers who had registered will then be invited to the showflat site and participate in a balloting process where they will be able to select their choice units at a heavily discounted early bird rate… Way before the general public even steps foot inside.
To get these perks, you’d just have to submit 3 documents.
- A copy of you NRIC or Passport
- A signed copy of the Expression of Interest form
- And a cheque addressed to the developer’s account
So there you have it!
The 5 essential steps you absolutely have to do before you step foot into any showflat.