New Reporter
15-09-23, 16:56
SDB’s One Draycott offers deferred payment schemes with extended completion, option exercise period
September 15, 2023
https://i.imgur.com/FJUBoi9.jpg
The 18-storey, 64-unit One Draycott obtained its Temporary Occupation Permit in April and its Certificate of Statutory Completion in July (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Property developers with completed projects are becoming more innovative with their deferred payment schemes (DPS). The latest to roll out a DPS is SDB Asia, the property development arm of Malaysia’s Selangor Dredging, for its project, One Draycott.
The 64-unit, freehold boutique condo at 1 Draycott Park obtained its temporary occupation permit in April and certificate of statutory completion (CSC) in July. It sits within one of Singapore’s most prestigious District 10 residential enclaves of Draycott, Claymore and Ardmore Park, just off Orchard Road.
“DPS can only kick in when a project has achieved the CSC,” says Eugene Lim, key executive officer at ERA Realty Network. “Such schemes offer buyers more flexible payment plans, which appeals to a larger pool of buyers.”
The typical payment scheme for a completed project is as follows: an option fee of 1% on the unit’s purchase price, followed by another 4% a fortnight later when the option is exercised. Any additional buyer’s stamp duty (ABSD) will also be paid when the option is exercised.
The following 30% down payment will be due eight to 12 weeks later. The down payment can be a mix of cash and Central Provident Fund Ordinary Account savings. If a loan has been taken, the balance of 65% will be paid through mortgage payments.
Two alternative schemes
Besides the typical payment scheme, SDB Asia offers home buyers two choices under its DPS: an extension on the sale completion period or a longer option exercise period.
For the DPS with an extended sale completion period, the buyer will pay a 1% option fee followed by another 9% down payment when the option is exercised two weeks later. Any ABSD due will also be paid then. However, the buyer will only need to pay the next 25% down payment six months (24 weeks) later instead of the usual eight to 12 weeks.
“This longer sale completion period is helpful for those who need more time to come up with their cash payment or to secure a loan,” says an SDB Asia spokesperson.
The second DPS offers the buyer an extension in the option exercise period and the ABSD payment. However, the upfront option fee is higher: 5% for those who want an eight-week extension on the option exercise period and 10% upfront for those who want a 16-week extension on the option exercise period. The following 20% down payment will be due eight to 12 weeks later.
Such DPS will be popular with buyers who need flexibility in payments, says Mark Yip, CEO of Huttons Asia. “Buyers will appreciate the longer sale completion period and extension on the option exercise period when they are waiting for their funds from other investments which they have exited,” he observes.
More at: https://www.edgeprop.sg/property-news/sdb%E2%80%99s-one-draycott-offers-deferred-payment-schemes-extended-completion-option-exercise-period
September 15, 2023
https://i.imgur.com/FJUBoi9.jpg
The 18-storey, 64-unit One Draycott obtained its Temporary Occupation Permit in April and its Certificate of Statutory Completion in July (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Property developers with completed projects are becoming more innovative with their deferred payment schemes (DPS). The latest to roll out a DPS is SDB Asia, the property development arm of Malaysia’s Selangor Dredging, for its project, One Draycott.
The 64-unit, freehold boutique condo at 1 Draycott Park obtained its temporary occupation permit in April and certificate of statutory completion (CSC) in July. It sits within one of Singapore’s most prestigious District 10 residential enclaves of Draycott, Claymore and Ardmore Park, just off Orchard Road.
“DPS can only kick in when a project has achieved the CSC,” says Eugene Lim, key executive officer at ERA Realty Network. “Such schemes offer buyers more flexible payment plans, which appeals to a larger pool of buyers.”
The typical payment scheme for a completed project is as follows: an option fee of 1% on the unit’s purchase price, followed by another 4% a fortnight later when the option is exercised. Any additional buyer’s stamp duty (ABSD) will also be paid when the option is exercised.
The following 30% down payment will be due eight to 12 weeks later. The down payment can be a mix of cash and Central Provident Fund Ordinary Account savings. If a loan has been taken, the balance of 65% will be paid through mortgage payments.
Two alternative schemes
Besides the typical payment scheme, SDB Asia offers home buyers two choices under its DPS: an extension on the sale completion period or a longer option exercise period.
For the DPS with an extended sale completion period, the buyer will pay a 1% option fee followed by another 9% down payment when the option is exercised two weeks later. Any ABSD due will also be paid then. However, the buyer will only need to pay the next 25% down payment six months (24 weeks) later instead of the usual eight to 12 weeks.
“This longer sale completion period is helpful for those who need more time to come up with their cash payment or to secure a loan,” says an SDB Asia spokesperson.
The second DPS offers the buyer an extension in the option exercise period and the ABSD payment. However, the upfront option fee is higher: 5% for those who want an eight-week extension on the option exercise period and 10% upfront for those who want a 16-week extension on the option exercise period. The following 20% down payment will be due eight to 12 weeks later.
Such DPS will be popular with buyers who need flexibility in payments, says Mark Yip, CEO of Huttons Asia. “Buyers will appreciate the longer sale completion period and extension on the option exercise period when they are waiting for their funds from other investments which they have exited,” he observes.
More at: https://www.edgeprop.sg/property-news/sdb%E2%80%99s-one-draycott-offers-deferred-payment-schemes-extended-completion-option-exercise-period