Are you considering in diversifying your investment into a new EC? You have discussed the idea with your family and made up your mind on this smart move. You are absolutely on the right path of financial freedom. Considering property investment is a fast-growing industry, and it comes with an unimaginable profit margin.
There is a to-do list before you make a step to attend the launching of executive condominium showflat. A little research will help you excel in the market. Attending the launching unprepared is the worst thing you can do, and you may miss this golden opportunity. Here are the exclusive five things to do.
1. Know Your CPF
If you are buying a property for the first time, the total central provident fund you can contribute is equivalent to all your savings in your ordinary account funds. If you are acquiring the property for the second time, it is essentials to fulfill the minimum amount of funds required. Ideally, second-timers contribute $75000.
2. Secure your Housing Loan plan
Majorities of buyers overlook the idea of getting their housing loan approval. However, this is one of the critical ideas you have to put into consideration. As a buyer, understanding your loan limits when attending condominium flat show helps in budgeting for the property that you are going to buy. Fortunately, the bank charges nothing for a loan limit consultation. If your loan is approved, it takes a minimum of seventy-two hours to process.
3. Research on how the Progressive Payment Scheme works
Researching on standard payment schemes aids in planning the cash required to purchase a property. A buyer pays 5% cash after identifying the unit to the developer project account. Then signs the agreement terms that are sent by the developer within two weeks. They later agree to pay down payment within eight weeks.
There is an agreement to take a 75% refunds if he terminates the contract.
4. Have an in-depth understanding of how the Balloting System works
Before the launching of every EC before show gallery is ready, there is one to two weeks preview period for the buyer to feel the unit. As a buyer, understand that this is your time to register for the balloting because you are looking forward to launching. It is good to know that buyers who previewed the apartment are prioritized. When registering for ballot carry the following documents: a cheque that is addressed to project account, a filled and signed form of interest (EOI) and a copy of NRIC. If you change your mind not to purchase, your documents will be handed back.
5. Understand the exact ABSD bracket you belong
It is crucial to have an insight into the additional buyer stamp duty category. If you are Singaporean, when buying the property for the first time it is duty-free. It is important to note that the second acquisition you will be taxed 7% if you purchase your third property. Later, the tax rate may increase to 10%.
However, the taxed rate induced to permanent residency is slightly higher, 5 % tax rate for the first property. For subsequent purchase the tax hikes to 10%. Although foreigners and entities are taxed 15% for every property acquired.
Frequently Asked Questions
i. Are there other miscellaneous fees?
A lawyer facilitates the transaction; therefore, the legal fees charged by him is the only miscellaneous fees incurred.
ii. What happens if my loan limit is half price of the property? When is the loan likely to take effect?
After paying 20% upfront, you are eligible to settle the balance in the form of cash. Also, you can use the CPF method whereby you will be required to pay 10% for the foundation, 10% for the particular framework,5% for partitioning and lastly five percent for roofing.
iii. What happens if I do have a bank to what with?
If you don’t have a bank, we usually recommend our clients to seek assistance from the list of banks we work with.