Navigating the process of buying a new launch property in Singapore can be overwhelming, especially when it comes to understanding the timeline of payments. This comprehensive guide aims to provide you with step-by-step instructions on how to approach the buying process, allowing you to plan your finances effectively and make informed decisions. By following this guide, you’ll gain a clearer picture of the timeline, from the initial assessment to collecting the keys to your new home.
Step 1: Loan Eligibility Assessment (Get an IPA)
Obtaining an In-Principle Approval (IPA) from a mortgage banker is crucial as it determines the loan amount you are eligible for. By knowing the loan amount, you can calculate your initial down payment and narrow down your property search based on your budget.
Step 2: Research and Shortlist Suitable Projects
Before diving into the property search, it’s essential to conduct thorough research and create a shortlist of projects that meet your requirements. Consider the following factors:
- New Launch Projects: Researching the available projects with the most up-to-date information can be time-consuming. However, StarBuyCondo is a property platform that offers comprehensive information on the latest new launches in the market. This saves homebuyers hours of searching through the vast internet for relevant details. Additionally, StarBuyCondo regularly updates homebuyers on the latest promotions and early-bird discounts available, ensuring that they are well-informed about any advantageous offers.
- Location: Evaluate the proximity of the property to essential amenities like schools, workplaces, public transportation, and recreational facilities. A convenient location can greatly enhance your lifestyle and ease daily commuting.
- Developer Profile & Past Track Record: Research the reputation and track record of the developer. Look for reviews and feedback from previous projects to assess their workmanship and commitment to quality.
- TOP Date: Take note of the project’s estimated Temporary Occupation Permit (TOP) date. This information will help you plan your timeline and expectations for when the property will be ready for occupancy.
- Layout and Floor Plans: Consider the available layouts and floor plans of the units. Determine if they align with your preferences and lifestyle needs, such as the number of bedrooms, living space, and functional areas.
- Facilities and Amenities: Explore the range of facilities and amenities provided within the project or its vicinity. This could include features like swimming pools, fitness centers, gardens, and nearby shopping centers or parks.
- Future Development and Appreciation Potential: Examine the master plan and upcoming developments in the surrounding area. Look for initiatives that could potentially enhance the value of the property over time, such as infrastructure projects, commercial developments, or improvements in transportation.
- Rental Yield and Exit Strategy: Evaluate the rental potential of the property by researching the rental market in the area. Additionally, consider your long-term plans and potential exit strategies, such as selling the property for capital gains or rental income. (See also: Rental Yield Calculator)
By considering these factors, you can create a shortlist of projects that align with your preferences and requirements, making your property search more efficient and focused.
Step 3: Visit Showflat
Visiting the showflat allows you to gather essential information and make a more informed decision:
- Sales Presentation: Gain a clearer understanding of the project through the salesperson’s presentation.
- Quality Assessment: Examine the materials used in carpentry work, flooring, and other important aspects.
- Living Space: Gauge the size and layout of the living spaces to determine if they meet your requirements.
- Site Plan and Amenities: Understand the overall layout of the development and the facilities available.
- Provided Goods and Brands: Take note of the appliances and brands provided in the unit.
- Smart Home Features: Inquire about any smart home features included in the property.
Step 4: Understand the Progressive Payment and Timeline
The salesperson or your agent will go through the financing details and timeline and help you familiar with the payment process. This will better help you to know and plan out your financing method before committing to a purchase. Refer to the provided table at Step 9, this guide for a comprehensive breakdown of the progressive payment schedule based on the construction stages.
Step 5: Evaluate and Discuss with Spouse and Family
Before making a decision, have an open discussion with your spouse and family members. Consider factors such as how the property will enhance your lifestyle, financial management, and potential future needs.
Step 6: Book a Unit
After selecting your desired unit, you will need to book it by submitting an Option to Purchase (OTP) and paying a booking fee of 5%.
Step 7: Engage a Banker and Solicitor for Conveyancing
Within the next 2 weeks, engage a solicitor to review the Sale & Purchase Agreement (SPA) and handle the conveyancing process. Simultaneously, work with a banker to secure the official approval for your loan.
Step 8: Exercise Sale & Purchase Agreement at the Law Firm
Once the SPA is reviewed and approved, exercise it at the law firm within 3 weeks and pay the stamp duty within 2 weeks after exercising it.
Step 9: Progressive Payment Based on Construction Stage
Please refer to the table below for the specific payment percentages and timelines based on each construction stage:
|Stage & Payable Fees (%)||Timeline||Mode of Payment|
|Booking of Unit: Option to Purchase (5%)||Day 1||Cash Only|
|Engage a Solicitor|
& Mortgage Banker
Delivery of Sale & Purchase Agreement
|Next 2 Weeks||Cash / CPF|
|Exercise Sale & Purchase (15%)||Within 3 Weeks||Cash / CPF|
|BSD / ABSD||Within 14 Days||Cash / CPF|
|Legal Fees: $2500 ~ $4000||Cash / CPF|
|Progressive Payment Based On Construction Stage|
|Stage 1: Foundation (10%)||Est. 6 ~ 9 months from launch||Cash / CPF / Loan|
|Stage 2: Unit Concrete Framework (10%)||Est. 6 ~ 9 months||Cash / CPF / Loan|
|Stage 3: Brick Walls (5%)||Est. 3 ~ 6 months||Cash / CPF / Loan|
|Stage 4: Ceiling/Roofing (5%)||Est. 3 ~ 6 months||Cash / CPF / Loan|
|Stage 5: Door/Window/Plumbing/Wiring (5%)||Est. 3 ~ 6 months||Cash / CPF / Loan|
|Stage 6: Carparks/Roads/Drains (5%)||Est. 3 ~ 6 months||Cash / CPF / Loan|
|Stage 7: TOP (25%)||Next 1 year||Cash / CPF / Loan|
|Stage 8: Cert. of Completion (15%)||Up to 27 years or|
your Loan Tenure
|Cash / CPF / Loan|
For more details, you may read the full Progress Payment Scheme.
Navigating the world of property buying can be overwhelming, but with the right knowledge and guidance, you can make informed decisions and embark on a successful journey. This timeline buying guide for new launches in 2023 equips you with valuable insights into the process, from obtaining an IPA and shortlisting projects to understanding the progressive payment schedule and engaging professionals.
By following the steps outlined in this guide, you’ll gain a clearer understanding of the timeline involved in purchasing a new property, allowing you to plan your finances, narrow down your options, and ultimately secure your dream home or investment. Remember to conduct thorough research, evaluate your needs and preferences, and seek expert advice when needed.
As you embark on this exciting endeavor, take your time, stay informed, and trust your instincts. A well-planned property purchase can not only provide a comfortable living space but also be a significant asset for the future. By leveraging the knowledge and tips shared in this guide, you’re on your way to making a well-informed decision that aligns with your goals and aspirations.
Happy property hunting and may your new launch purchase in 2023 be a rewarding and fulfilling experience!