Stages of completion for uncompleted project

[charvin83]

Hi all, recently I just bought a new property from a new launch 1 week ago.

Repayment scheme
Foundation 10%
Reinforced Concrete 10%
Brick Wall 5%
Ceiling/Roof 5%
Ele Wiring/pipes 5%
Drain/Road 5%
TOP 25%
CSC 15%

Estimated TOP stated in the brochure is Q1 2014

Now I am deciding on the bank package. This is the 3 offer i received for SOR package

Package A :

Yr 1 3mthSOR + 0.9
Yr 2 3mthSOR + 0.8
Yr 3 3mthSOR + 0.7
Thereafter 3mthSOR + 0.7

Package B :

Yr 1 3mthSOR + 0.65
Yr 2 3mthSOR + 0.65
Yr 3 3mthSOR + 0.75
Thereafter 3mthSOR + 1

Package C :

Yr 1 3mth SOR + 0.7
Yr 2 3mthSOR + 0.7
Yr 3 3mthSOR + 0.7
Thereafter 3mthSOR + 1

Which package is better in term of 3mth SOR? Assume yr 1 will start on the date of the 1st disbursement. Which package you think is better?

[charvin83]

I notice some developer like to certified a few item together before claiming from the bank, some like to certified single item by single item.

If they like to certified a few thing at one go.
Starting out on package B will be gd. Consider a low interest of 3mth SOR + 0.65% for 1st 2 yr.. TOP or CSC might even kick in before the 3mth SOR + 1% interest rate come in... By the time the full loan disbursement complete, I might already do a refinancing le, avoiding the thereafter rate (yr 4 onward).

If they like to certified a single item by item,
package C will be suitable, given the yr 3 rate is 0.7% + 3mth SOR, i might save a big sum as compared to using package B. If single item by item, the different between the 3 package is not much diff.

What is your thought?

[charvin83]

Anyone thinking of using SIBOR? Some bank is offering 1mth SIBOR which is 0.11% above current SOR only. And current SIBOR is quite stable.

On the other hand, SOR is expected to be low as Singapore currency appreciate against USD. Today 3mth SOR is 0.25746

[gnooliew]

Hi all, recently I just bought a new property from a new launch 1 week ago.

Repayment scheme
Foundation 10%
Reinforced Concrete 10%
Brick Wall 5%
Ceiling/Roof 5%
Ele Wiring/pipes 5%
Drain/Road 5%
TOP 25%
CSC 15%

Estimated TOP stated in the brochure is Q1 2014

Now I am deciding on the bank package. This is the 3 offer i received for SOR package

Package A :

Yr 1 3mthSOR + 0.9
Yr 2 3mthSOR + 0.8
Yr 3 3mthSOR + 0.7
Thereafter 3mthSOR + 0.7

Package B :

Yr 1 3mthSOR + 0.65
Yr 2 3mthSOR + 0.65
Yr 3 3mthSOR + 0.75
Thereafter 3mthSOR + 1

Package C :

Yr 1 3mth SOR + 0.7
Yr 2 3mthSOR + 0.7
Yr 3 3mthSOR + 0.7
Thereafter 3mthSOR + 1

Which package is better in term of 3mth SOR? Assume yr 1 will start on the date of the 1st disbursement. Which package you think is better?

Hi, I think I bought the same development as u :D . I taking Package A after much consideration. Coz since it is build-up, the higher interest rate for first 2 years just barely a few hundred bucks. However, if SOR does not appreciate much after TOP, I can stick to the 0.7 spread all the way until SOR is no longer a gd option. 2ndly, even if u refin after TOP, given that interest rates then should be higher than now, the spread you get may not be as gd, e.g. refin SOR+1 become SOR+0.75 still doesn't win Package A. But thats all speculation of SOR. Really is see luck.

[esparian]

Charvin, can you PM me which are the 3 banks for your Pkg A,B,C.

Not really sure on the stage. This is my guess:

Scenario A
2010 Oct - Option Fee
2010 Dec - Signing of Purchase agreement
2011 Jun - Foundation work completion
2012 Jun - Brick walls of unit completed
2012 Dec - Ceiling of the Unit completed.
2013 Jun - Door, window, wiring, plastering completed.
2013 Dec - Car park, roads and drains completed.
2014 Mar - Temporary Occupation Permit (TOP)
2015 March Certificate of StatutoryCompletion (CSC)


Scenario B
2010 Oct - Option Fee
2010 Dec - Signing of Purchase agreement
2011 Jun - Foundation work completion
2012 Jun - Brick walls of unit completed
2012 Jun - Ceiling of the Unit completed.
2013 Jun - Door, window, wiring, plastering completed.
2013 Dec - Car park, roads and drains completed.
2014 Mar - Temporary Occupation Permit (TOP)
2015 March Certificate of StatutoryCompletion (CSC)