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.
Newbie
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.
Blue blood
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.
half beast half freak
Originally Posted by 4wheels
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
Newbie
Thanks, so who check if I have enough?
Blue blood
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.
Newbie
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
Blue blood
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.
Junior
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
Junior
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.
Newbie
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?
Junior
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.
half beast half freak
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
Junior
i am sure they would protect themselves in a way. or else, any tom, dick and harry can just walk in and buy.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
Junior
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.
Junior
Yup.... Remember deferred payment scheme in the past ????
Junior
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?
Junior
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...
Junior
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
Newbie
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.
Junior
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
Junior
Brudder, read this
http://ownsgproperty.com/what-is-pro...ferred-payment
Junior
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.
Newbie
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.
Senior
Dealing with developers means you are buying BUC so you should be paying 5% option fee direct, right?
Senior
Developer v happy... just swallow your option fee and then makan the next buyer in the line! Not 1% lah!
Junior
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
Newbie
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.
Junior
It won't happen in singapore. There are protection mechanism in place
Newbie
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.
Newbie
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.
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