View Full Version : Can I not take loan？
If I have a million and I buy a new PC that cost 900k. I do not want to take loan and I can full according to the payment scheme, can I do that? Or I must still take a loan or must pay full upon S&P?
Thanks in advance.
princess_morbucks
03-06-13, 14:04
No need to take loan if you have enough money to pay up.
If the new PC has not TOP yet, you just pay progressive payment.
If TOP, then you pay 5% first, followed by 15% later, then the rest when you get the keys.
If I have a million and I buy a new PC that cost 900k. I do not want to take loan and I can full according to the payment scheme, can I do that? Or I must still take a loan or must pay full upon S&P?
Thanks in advance.
u can dun take loan but not advisable. juz pay according to the billing by the developer.
heard tat iras will come after u to check on u, not sure how true it is ...
but den again, paying all in full is not a very capital maximising approach :2cents:
No need to take loan if you have enough money to pay up.
If the new PC has not TOP yet, you just pay progressive payment.
If TOP, then you pay 5% first, followed by 15% later, then the rest when you get the keys.
Thanks, so who check if I have enough?
princess_morbucks
03-06-13, 14:17
Thanks, so who check if I have enough?
Nobody willl check whether you have enough, but yourself.
If you don't have enough, then the seller will forfeit a certain percentage (i think 25%) of your booking fee if you don't exercise the option.
Once you exercise the S&P, there is no turning back.
You are the owner of the unit and if you don't have money, you will have to sell the unit, and be subjected to SSD.
Nobody willl check whether you have enough, but yourself.
If you don't have enough, then the seller will forfeit a certain percentage (i think 25%) of your booking fee if you don't exercise the option.
Once you exercise the S&P, there is no turning back.
You are the owner of the unit and if you don't have money, you will have to sell the unit, and be subjected to SSD.
Can I take loan after halfway through? Meaning after paying 50% (maybe 2years from S&P for a new launch project. of the sale prices
princess_morbucks
03-06-13, 14:58
Can I take loan after halfway through? Meaning after paying 50% (maybe 2years from S&P for a new launch project. of the sale prices
As long as you have money to pay the progressive payment, the developer doesn't care where the money comes from.
If you decide to take a bank loan half way, yes, why not?
But then the bank will decide your financial situation at that time and will decide how much it will loan you and for how long, depending on your age and depending on restrictions imposed by MAS at that point in time.
As long as you have money to pay the progressive payment, the developer doesn't care where the money comes from.
If you decide to take a bank loan half way, yes, why not?
But then the bank will decide your financial situation at that time and will decide how much it will loan you and for how long, depending on your age and depending on restrictions imposed by MAS at that point in time.
not true, if i'm the developer, i would want some form of guarantee that you can finance your purchase and not run into arrears
If I have a million and I buy a new PC that cost 900k. I do not want to take loan and I can full according to the payment scheme, can I do that? Or I must still take a loan or must pay full upon S&P?
Thanks in advance.
yes you can do that. there is absolutely no need for you to take a loan.
my relatives buy their singapore properties using progressive payment scheme. they didnt have to take a loan.
not true, if i'm the developer, i would want some form of guarantee that you can finance your purchase and not run into arrears
That's something that I'm curious over. Is it written in the S&P or elsewhere that the developer has the right to ask for some form of guarantee for cash purchase? Does the developer make this clear to the buyer before signing the option?
That's something that I'm curious over. Is it written in the S&P or elsewhere that the developer has the right to ask for some form of guarantee for cash purchase? Does the developer make this clear to the buyer before signing the option?
i can't comment since i don't have a S&P document or am i a conveyancing lawyer.
i'm just commenting that if i were a business owner, i would want some form of guarantee from a buyer who is yet to pay me in full. i'm merely protecting the interests of my business.
i can't comment since i don't have a S&P document or am i a conveyancing lawyer.
i'm just commenting that if i were a business owner, i would want some form of guarantee from a buyer who is yet to pay me in full. i'm merely protecting the interests of my business.
but I hv never seen S&P stating for any form of guarantee wor ....
actually I dun tink the developer cares if u can pay onot, cos the bulk of the payment is due way b4 the project TOP. u r at a losing end if u default, not them.
For banks it is diff. They started payment for u at a very early stage. not only they wan assurance fm u tat u can pay, they oso make u pay for ins to ensure tat the unit is sibeh secured :doh:
but I hv never seen S&P stating for any form of guarantee wor ....
actually I dun tink the developer cares if u can pay onot, cos the bulk of the payment is due way b4 the project TOP. u r at a losing end if u default, not them.
For banks it is diff. They started payment for u at a very early stage. not only they wan assurance fm u tat u can pay, they oso make u pay for ins to ensure tat the unit is sibeh secured :doh:
i am sure they would protect themselves in a way. or else, any tom, dick and harry can just walk in and buy.
i am sure they would protect themselves in a way. or else, any tom, dick and harry can just walk in and buy.
let me state that you are flat wrong.
any tom, dick, harry can just walk in and buy as long as he can pay the downpayment.
let me state that you are flat wrong.
any tom, dick, harry can just walk in and buy as long as he can pay the downpayment.
Yup.... Remember deferred payment scheme in the past ????
let me state that you are flat wrong.
any tom, dick, harry can just walk in and buy as long as he can pay the downpayment.
when signing the papers at the legal firm, the lawyers will definitely do a background check.
not to do so is simply imprudent, on the part of the business owner. why let any tom, dick and harry buy only to default?
when signing the papers at the legal firm, the lawyers will definitely do a background check.
not to do so is simply imprudent, on the part of the business owner. why let any tom, dick and harry buy only to default?
First they take a 1% downpayment.... So if you dont exercise, they take the downpayment.... Once you exercise, you have to place another 4%... And the drawdown occurs progressively... So developer has no risk.... They already holding your money....
For the progressive payment portion, lawyer will send you the progress payment and you need to write the check... Hahahahaha
The lawyer assumes you can afford... You cannot, your problem...
First they take a 1% downpayment.... So if you dont exercise, they take the downpayment.... Once you exercise, you have to place another 4%... And the drawdown occurs progressively... So developer has no risk.... They already holding your money....
and you don't pay up after 20%? sue you to recover money, waste time and money doing so?
besides, the buyer's conveyancing lawyers should also advise accordingly too
when signing the papers at the legal firm, the lawyers will definitely do a background check.
not to do so is simply imprudent, on the part of the business owner. why let any tom, dick and harry buy only to default?
Correct me if i am wrong. When u take loan, the bank lawyers will definitely lodge the caveats. If you don't take loan, you can choose not to lodge the caveats. This explains why the caveats lodged are usually lower than the actual units announced sold.
and you don't pay up after 20%? sue you to recover money, waste time and money doing so?
besides, the buyer's conveyancing lawyers should also advise accordingly too
Brudder, you go in to new development and put a downpayment of 1% to buy a new unit.... You dont exercise the option, see if developer will sue you or not... Hahahaha
Can you remember the deferred payment scheme???? Hahahahaha
Brudder, read this
http://ownsgproperty.com/what-is-progress-payment-and-deferred-payment
Brudder, you go in to new development and put a downpayment of 1% to buy a new unit.... You dont exercise the option, see if developer will sue you or not... Hahahaha
Can you remember the deferred payment scheme???? Hahahahaha
the person who posted the thread wasn't talking about the option. just chiong kong lah, everyone knows that.
he's talking about 50% and beyond. what are the mechanisms, besides repossession, a developer employs to protect itself?
even if buyer defaults and the developer can repossess the unit, that's already a form of guarantee. of course, there would be a waste of resources to do so.
Brudder, you go in to new development and put a downpayment of 1% to buy a new unit.... You dont exercise the option, see if developer will sue you or not... Hahahaha
Can you remember the deferred payment scheme???? Hahahahaha
Yes, 1% option buys you the right so developer cannot sue if you don't sign. But assuming 20% of 1 million (200K) has been paid, then developer already 'pow chiak', so if buyer defaults, developer should be more than happy unless there is a property crash beyond 20%. So, come to think of it, risk to developer is very small and their reward/risk is very high.
First they take a 1% downpayment.... So if you dont exercise, they take the downpayment.... Once you exercise, you have to place another 4%... And the drawdown occurs progressively... So developer has no risk.... They already holding your money....
For the progressive payment portion, lawyer will send you the progress payment and you need to write the check... Hahahahaha
The lawyer assumes you can afford... You cannot, your problem...Dealing with developers means you are buying BUC so you should be paying 5% option fee direct, right?
Brudder, you go in to new development and put a downpayment of 1% to buy a new unit.... You dont exercise the option, see if developer will sue you or not... Hahahaha
Can you remember the deferred payment scheme???? HahahahahaDeveloper v happy... just swallow your option fee and then makan the next buyer in the line! Not 1% lah!
Yes, 1% option buys you the right so developer cannot sue if you don't sign. But assuming 20% of 1 million (200K) has been paid, then developer already 'pow chiak', so if buyer defaults, developer should be more than happy unless there is a property crash beyond 20%. So, come to think of it, risk to developer is very small and their reward/risk is very high.
if the developer has deep cash reserves, no problem. if your developer is like those half-baked ones in malaysia that leaves condo half-built, then this becomes a significant issue
if the developer has deep cash reserves, no problem. if your developer is like those half-baked ones in malaysia that leaves condo half-built, then this becomes a significant issue
Yes, in this context. The developer might go bust once they have cash flow problems. The risk to buyer in this context is much higher.
if the developer has deep cash reserves, no problem. if your developer is like those half-baked ones in malaysia that leaves condo half-built, then this becomes a significant issue
It won't happen in singapore. There are protection mechanism in place
evolutionx
04-06-13, 14:36
when signing the papers at the legal firm, the lawyers will definitely do a background check.
not to do so is simply imprudent, on the part of the business owner. why let any tom, dick and harry buy only to default?
what? which lawyer does a background check unless specifically asked to do so? then again, your financials are private, how will they check.
if you default after paying say 20%, based on market situation, developer may just absorb the 20%, let you go, and remarket the unit at the full price. have seen it been done before.
unless an owner is desperate for the cash, who doesnt want "free" 20% AND gets to keep the property? i wouldnt even waste time on lawyers.
i have only had 1 buyer get cold feet after exercising his 4%. i let him back out by forfeiting 70% of his 5% and return him back the 30%. sold to another buyer at the same price a month later.
whatever it is, so I can buy a new PC without taking up load as long as I can pay later. Also, I can take loan any time even after 50%, 60% pay up to the developer.
I understand that it best to take loan due to the low interest rate. What if the interest rate up to 5%, then, when I buy, I pay hardcash for downpayment and subsequence payment so that I can avoid the interest pay the bank for loan.
evolutionx
04-06-13, 15:04
whatever it is, so I can buy a new PC without taking up load as long as I can pay later. Also, I can take loan any time even after 50%, 60% pay up to the developer.
I understand that it best to take loan due to the low interest rate. What if the interest rate up to 5%, then, when I buy, I pay hardcash for downpayment and subsequence payment so that I can avoid the interest pay the bank for loan.
yes, but it makes sense to do a preliminary check and see what kind of loans you qualify for (at least, for some basic peace of mind). though off the top of my head, i cant think of any bank that wouldnt want to lend you only 40-50% ... their risk & downside is fully covered (theoretically of course)
It won't happen in singapore. There are protection mechanism in place
but then developer can actually cancel the S&P, refund buyers their money. and sell new ones.
The Blissville become the Nexus.
but then developer can actually cancel the S&P, refund buyers their money. and sell new ones.
The Blissville become the Nexus.
Check with your lawyer. They will explain to you clearly what will happen when the developer goes kaput....
Super safe.... There is a protection for the home buyer....
:cheers4::cheers4::cheers4:
Check with your lawyer. They will explain to you clearly what will happen when the developer goes kaput....
Super safe.... There is a protection for the home buyer....
:cheers4::cheers4::cheers4: i am not talking about developer kaput.
i am saying developer cancel the contracts on their own initiative and refund the buyer.
this blissvile is JV by wingtai and orchard parade holdings.
sales are reported slow, so they refund the buyers and redevelop the project into nexus.
which is why i am curious why The Sail developer didn't cancel the S&P agreement, (a lot were sold at 900psf-1000psf ) and sell it back at 2000psf.
i am not talking about developer kaput.
i am saying developer cancel the contracts on their own initiative and refund the buyer.
this blissvile is JV by wingtai and orchard parade holdings.
sales are reported slow, so they refund the buyers and redevelop the project into nexus.
which is why i am curious why The Sail developer didn't cancel the S&P agreement, (a lot were sold at 900psf-1000psf ) and sell it back at 2000psf.
This is new to me... You have any article on it???
evolutionx
04-06-13, 17:51
This is new to me... You have any article on it???
google is your friend.
http://newspapers.nl.sg/Digitised/Article/today20031219-1.2.13.4.aspx
what? which lawyer does a background check unless specifically asked to do so? then again, your financials are private, how will they check.
if you default after paying say 20%, based on market situation, developer may just absorb the 20%, let you go, and remarket the unit at the full price. have seen it been done before.
unless an owner is desperate for the cash, who doesnt want "free" 20% AND gets to keep the property? i wouldnt even waste time on lawyers.
i have only had 1 buyer get cold feet after exercising his 4%. i let him back out by forfeiting 70% of his 5% and return him back the 30%. sold to another buyer at the same price a month later.
my lawyers ask me routinely how i intend to pay, bank's letters - this is background check
no one is quibbling that the developer will re-possess the unit. it's just not prudent, in business sense, not to make sure that your purchasers are legit and to waste resources trying to sue/recover monies/repossess.
google is your friend.
http://newspapers.nl.sg/Digitised/Article/today20031219-1.2.13.4.aspx
thank you. i have mentioned the keywords already, those interested would already have google it themselves without further spoonfeeding.
evolutionx
05-06-13, 09:28
my lawyers ask me routinely how i intend to pay, bank's letters - this is background check
no one is quibbling that the developer will re-possess the unit. it's just not prudent, in business sense, not to make sure that your purchasers are legit and to waste resources trying to sue/recover monies/repossess.
hmmm ok. never really considered that to be a background check. to each his own i spose.
thank you. i have mentioned the keywords already, those interested would already have google it themselves without further spoonfeeding.
well it was the first time i've heard of it, so quite an interesting article for me too.
google is your friend.
http://newspapers.nl.sg/Digitised/Article/today20031219-1.2.13.4.aspx
Thanks bro.... If i were the buyer of blissville, i would have no issue with the cancellation. Hahahahahaha :D:D:D:D
Thanks bro.... If i were the buyer of blissville, i would have no issue with the cancellation. Hahahahahaha :D:D:D:D
for sure, i would have no issue also.
but what if buyers has issue, then what is their recourse?
looks like i would forever wonder why the sail developer didnt cancel S&P at 900psf.
but then FEO always come up shennanigan like that, cancel S&P, "soho" concept, FH-turn-103LH. no wonder they deserved to be the richest family in singapore.
To protect myself from defamation suits, there is this disclaimer: what i write below is mere my imagination and if it matches reality, it is merely coincidental. :)
I heard that somebody ran away with tontine money to some island near China, I also heard somebody setup a rickshaw driver as a director (to be a fall guy) to borrow money from bank with no intention of repaying, so the rickshaw driver goes to jail instead of that fellow.
Again, don't try googling to verify what i said, i looked for it in internet NLB, all the newspaper archive, zilch. your only recourse is to ask the old xinghua clan folks or to check the physical newspaper archive in NLB.
remember, if the xinghua clan folks verify what i say, it is merely coincidental.
http://www.ura.gov.sg/lad/HBG/spa.htm
http://www.ura.gov.sg/lad/HBG/Sale%20and%20Purchase%20Agreement.pdf
i am not talking about developer kaput.
i am saying developer cancel the contracts on their own initiative and refund the buyer.
this blissvile is JV by wingtai and orchard parade holdings.
sales are reported slow, so they refund the buyers and redevelop the project into nexus.
which is why i am curious why The Sail developer didn't cancel the S&P agreement, (a lot were sold at 900psf-1000psf ) and sell it back at 2000psf.
it's ugly, plus the loss of goodwill and damage to the company's brand.......
it's like how owners accept an offer, only to renegade when another higher offer comes in (not taking into account the possible manipulative practices)
must be like Kong Hee lah, "I maintain my integrity"
TheOnlyGayInTheVillage
05-06-13, 11:58
http://www.ura.gov.sg/lad/HBG/spa.htm
http://www.ura.gov.sg/lad/HBG/Sale%20and%20Purchase%20Agreement.pdf
Excellent info.
Moral of story. Just like sex, oral doesnt count.
Make sure to have it in black n white.
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.