There are now completed developments in the market which are offering the Deferred Payment Scheme. The Monetary Authority of Singapore (MAS) has announced that the buyers in this market segment will only be allowed to take up lower loan amounts.
For completed developments that do not offer the Deferred Payment Scheme, buyers have to pay the full sum at the end of 8 to 12 weeks.
For those developments with Deferred Payment Scheme, banks have to take into account the benefits that the buyers will be enjoying in the interim period as the buyers can use the money which they did not pay full in the beginning to invest in other bank instruments for a return. These benefits will be deducted from the purchase price and in so doing, the loan amount will be smaller. The banks have a formula for calculating the value of these benefits.
In developments where developers offer guaranteed rentals for a fixed amount of time, banks also have to take these benefits into account when calculating loan amounts. Hence, buyers must be aware that the loan amount will be lesser after these benefits are deducted from the purchase price.
Yet the Deferred Payment Scheme proves an attractive option as buyers can make use of the interim period to sell their current house and thereby free up their current mortgage before taking up a new mortgage for the new condo launch.
It has been reported that OUE Twin Peak Tower 2 buyers have a good majority who had opted for the Deferred Payment Scheme but have not applied for loans yet.
OUE Twin Peak Tower 1 is now being launched. Tower 2 has sold very well because prices became very attractive after a good price adjustment. This is coupled with the fact that Twin Peak offers fully furnished units with designer outfits which means that buyers do not have to spend additional time, effort and money on their unit already. It is literally “Bring your luggage”.
With so many different and exciting new condo launches in the Singapore property market, it will not be easy for you to decide which new launch condo is suitable for your purchase. Allow us to help you assess your finances, plan your priorities and determine your best options. Thereafter, we will go and view the list of developments that you have shortlisted.
Make an appointment with us today by filling in the form and we will contact you very soon.