When it comes to buying a resale condo in Singapore, one of the most important things to consider is the payment schedule. Understanding how payments are made and when they are due can help you plan your finances and better manage your cash flow.
In this blog, we’ll explore the typical payment schedule for resale condos in Singapore, including what you can expect to pay at each stage of the process. Whether you’re a first-time buyer or an experienced investor, this guide will provide you with valuable insights into the world of Singapore’s real estate market.
|Booking Fee||1% of purchase price||Paid within 14 days of signing the Option to Purchase (OTP)|
|Option Fee||4% of purchase price||Paid within 14 days of signing the OTP|
|Legal Fees||Varies||Paid to your lawyer for handling the conveyancing process|
|Stamp Duty||Varies||Paid to the government|
|Additional Buyer’s Stamp Duty (ABSD)||Varies||Paid to the government if you are not a Singapore citizen or Permanent Resident and are buying your second or subsequent property|
|Downpayment||25% of purchase price||Paid to the developer at the time of legal completion|
|Home Loan||75% of purchase price||Borrowed from a bank|
Payment Schedule For Buying Resale Private Property (LTV 75%)
The payment schedule associated with the procurement of a resale private property in Singapore is typically a multifaceted process, involving a loan-to-value (LTV) ratio of 75%. This process is comprised of several stages, each requiring due diligence and meticulous attention to detail.
The initial payment, colloquially referred to as the “booking fee,” constitutes 1% of the purchase price and is mandatory upon the signing of the Option to Purchase (OTP). Subsequently, the “exercise fee,” typically negotiated between the seller and buyer, will be required. This payment is either 4% or 9% of the purchase price, depending on the aforementioned negotiation.
Moreover, the buyer will be required to settle the buyer’s stamp duty and any additional buyer’s stamp duty, if applicable, within a fortnight of signing the Sales and Purchase Agreement (S&P). The remaining payment will be made upon the transaction’s completion, which entails the payment of the remaining 20% of the downpayment and securing a bank loan for the remaining 75% of the purchase price.
Lentor Gardens Residences
Resale Condo Payment Schedule
The resale condo payment schedule in Singapore is one of the most important aspects to consider when purchasing a property. As outlined in the previous section, the payment schedule for completed developments includes a 1% booking fee and an option fee to be paid within 14 days of exercising the option.
On the other hand, a resale condominium requires 4 payments, beginning with a 1% option fee. It is important to note that in addition to the payment schedule, buyers will have to consider their Buyer Stamp Duty (BSD) or Additional Buyers Stamp Duty (ABSD), which should also be taken into account when budgeting for a resale condo.
In the next sections, we will delve deeper into the specifics of the payment schedule and other considerations when purchasing a resale condo in Singapore.
25% Down Payment for Condo Purchase
As previously mentioned in the Resale Condo Payment Schedule in Singapore, buyers are required to pay a down payment of 25% of the total purchase price when taking out a home loan. This means that for a property worth $1,000,000, the down payment would be $250,000. It is important to note that banks will only loan up to 75% of the purchase price, so buyers need to have the remaining 25% cash or CPF OA. This can be a significant amount, but it is necessary to secure the property and start the payment schedule. Understanding the payment schedule and the associated costs is crucial for buyers looking to purchase resale condos in Singapore.
Payment Schedule for Completed Condo Developments
When it comes to buying a completed condo, the payment schedule can differ depending on the development. In general, the buyer will need to pay a booking fee of 1% to secure the condo, followed by exercising the option within 14 days, which requires another fee. Once these initial fees have been paid, the rest of the payment schedule will be laid out, usually over a few months.
The buyer will then be required to engage a solicitor and pay the down payment as agreed in the sales and purchase agreement. It’s important to note that the buyer will also need to pay BSD and ABSD, if applicable, within 14 days of completing the S&P agreement. Overall, it’s crucial for buyers to understand the payment schedule and requirements before committing to a purchase.
The payment Schedule for Resale Condos is crucial for anyone looking to purchase a property in Singapore. The 25% down payment for a resale condo purchase is typically broken down into four stages, with the remaining payments made upon completion.
The buyer will also need to pay the Buyer Stamp Duty (BSD) and Additional Buyers Stamp Duty (ABSD) within 14 days of completing the Sales and Purchase agreement. Additionally, for buying a private resale property, a booking fee of 1% is required at the time of granting the Option.
With the legal completion of Sales and Purchase, 20% of the remaining payment must be made, and the seller hands over the keys. One important factor to consider when purchasing a resale condo is that the payment schedule may differ from the schedule for properties under development. Understanding the details and requirements of a payment schedule is essential for a smooth and successful property purchase.
|Booking fee||Within 14 days of signing the Option to Purchase (OTP)||$10,000|
|Option fee||Within 14 days of signing the OTP||$40,000|
|Legal fees||Paid to your lawyer for handling the conveyancing process||$3,000 – $5,000|
|Stamp duty||Paid to the government||$16,000 – $20,000|
|Additional Buyer’s Stamp Duty (ABSD)||Paid to the government if you are not a Singapore citizen or Permanent Resident and are buying your second or subsequent property||$150,000 – $300,000|
|Downpayment||Paid to the developer at the time of legal completion||$250,000|
|Home loan||Borrowed from a bank||$750,000|
|Monthly mortgage repayments||Varies depending on the interest rate and loan tenure|
Buyer Stamp Duty (BSD) or Additional Buyers Stamp Duty (ABSD)
When purchasing a resale condo in Singapore, buyers need to be aware of the Buyer Stamp Duty (BSD) and Additional Buyers Stamp Duty (ABSD) requirements. Depending on the buyer’s status and the purchase price or market value of the property, they may need to pay for ABSD on top of the BSD. The ABSD needs to be paid within 14 days of the sale and purchase agreement being signed.
The payment schedule for completed condo developments and resale condos should factor in these taxes, as they are computed on the purchase price. Buyers should also take note of the Valuation Fee and Legal Completion of Sale and Purchase, as well as Securing the OTP and First Option Fee when finalizing the payment schedule. By understanding the payment schedule and tax requirements for buying a resale condo in Singapore, buyers can avoid surprises and ensure a smoother transaction.
Buying Resale Private Property
When buying a resale private property in Singapore, it is important to familiarize yourself with the payment schedule. As mentioned earlier, a 25% down payment is required and can be paid through a combination of cash and bank loans. Upon exercising the Option To Purchase, buyers need to pay for the Buyer Stamp Duty (BSD) or Additional Buyer Stamp Duty (ABSD) if applicable. After everything is in order, buyers need to pay the seller 1% of the property purchase price in cash. The remaining balance payment can be paid depending on the completion of the sale and purchase agreement, including the legal completion and valuation fee. It is recommended to consult with a real estate agent or a lawyer to ensure a smooth transaction and to avoid unnecessary fees and charges.
Valuation Fee and Legal Completion
When buying a resale condo in Singapore, it’s essential to factor in the valuation fee and legal completion of sale and purchase. The valuation fee could range from S$350 to S$500, which is payable upfront.
This valuation is necessary to determine the property’s fair market value, and it helps in securing a mortgage loan from the bank. As for legal completion of sale and purchase, it’s the final stage of the transaction, where the seller hands over the keys to the buyer. This step involves paying the balance of the purchase price minus the home loan amount.
Additionally, legal fees would be incurred, which could reach up to S$3,000. Overall, understanding the payment schedule for resale condos is crucial to avoid any unexpected costs and to ensure a smooth and stress-free transaction.
Securing the OTP and First Option Fee
To secure an Option To Purchase (OTP) for a resale condo in Singapore, buyers must first pay a booking fee in cash. This is typically 1% of the purchase price of the property and is negotiable. The payment of this option fee prevents other buyers from swooping in and making an offer on the property during the period of exclusivity.
Once the OTP is obtained, the seller cannot accept any other offers for a specified time frame, usually 14 days. It is important to note that the OTP can only be secured by paying the booking fee in cash, and cannot be paid for by CPF.Resting on this, the payment schedule for resale condos can be broken down into specific milestones, including the valuation fee and legal completion of sale and purchase.
Property Under Construction
For those looking to purchase a property under construction, the Progressive Payment Scheme (PPS) is used to make instalment payments for when the building reaches specific milestones in the construction process. A booking fee of 5% is required upon booking, followed by a balance payment of 15% within 8 weeks of booking. An additional 5% is due upon the completion of the foundation, typically within 6 to 9 months.
The remaining payments are structured to coincide with the completion of the reinforced concrete framework and brickwork until the construction is fully completed. As with all property purchases, buyers must also factor in valuation fees and legal completion fees upon sale, as well as possible additional costs such as Buyer Stamp Duty (BSD) or Additional Buyers Stamp Duty (ABSD) if applicable.
Summary of Payment Schedule
To summarize, the payment schedule for resale condos in Singapore is relatively straightforward. Buyers are required to pay a booking fee of 1% upon exercising their option, followed by a down payment of 25% within 8-10 weeks.
For completed developments, owners have the option to pay in instalments of 5% or 10% of the total purchase price, spread over 6-9 months. Stamp duty and additional buyer’s stamp duty (ABSD) apply for certain buyers, while valuation fees and legal completion of sale and purchase must also be taken into account. For property under construction, the payment schedule varies based on the developer’s arrangement.
Overall, planning upfront payments and finances is essential when purchasing a resale condo in Singapore.