Penrose Condominium At Sims Drive District 14 RCR By Hong Leong & CDL | 61008833

 

 

Guide On How To Buy New Launch Condo

 

Steps For Home Buyers To Purchase Penrose Residence

 

Guide To Buying Your Dream Condominium

Buying your dream home is a big commitment and could be a stressful journey but it is very rewarding, knowing that you are going to finally own your well-deserved pad. Here are some general tips that can help to allay your anxiety before your embark on this exciting journey.

 

1. Visit the condo showflat
2. Get Approval in Principle (AIP) from the bank and plan your finances
3. Submit an Expression of Interest (EOI) together with a blank, unsigned cheque
4. Select your unit and pay a 5% cash deposit to obtain the Option to Purchase (OTP)
5. Finalise your bank loan and sign the Sales and Purchase Agreement (S&PA)
6. Pay the Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD) and another 20% downpayment
7. Pay for the rest of the condo progressively
8. Collect your keys and move in!

 

1. Visit the condo showflat

Your hunt for new launch condos begins with going around viewing each project’s showflat. Showflats usually open for previews 1-2 weeks before the official launch day to the public. During preview stage, actual selling prices of each unit are usually under wraps. However, there will be an “indicative price” that is generally quite close to the actual selling price on launch day. This is to give you a rough idea of the price range.Talk to agents at the showflat to answer your queries.

 

2. Get Approval in Principle (AIP) from the bank and plan your finances

The prices of new launch condo units are typically fixed, something different from resale properties. But the good news is that early buyers usually get discounts from developer. Based on the indicative price of the condo, ensure you have enough finances to pay the upfront costs of the condo and the various payments that’ll follow. You can work with your appointed agent or an agent at the showflat to estimate how much of a bank loan you need to take. From there, get an Approval in Principle (AIP) from the bank you’re intending to get a loan from.

 

An AIP is basically the bank’s agreement to lend you a certain sum of money, based on your financial health and credit history, as a home loan. It has a validity of 30 days. Getting an AIP does not obligate you to take up a loan from that bank. Do shop around and you are free to go with other banks that offer better rates. It is advisiable to be in a good financial position to buy before moving on to the next step, so your home search isn’t futile.

 

3. Submit an Expression of Interest (EOI) together with a blank, unsigned cheque

If you have decided to purchase your dream unit, fill up the developer’s Expression of Interest (EOI) form and submit this together with a blank, unsigned cheque. Basically, this is to express your interest to select a unit on the launch day later. You’ll be invited back again on the launch day to select your unit. The blank, unsigned cheque (only addressed to the developer’s account) is meant for the 5% booking fee in the event you wish to purchase on launch day.

 

4. Select your unit and pay a 5% cash deposit to obtain the Option to Purchase (OTP)

On launch day, you will be given a random ballot number. The developer will pick out ballot numbers from the ballot box to determine who gets to pick their units first. The earlier your number gets picked, the more choices of units available for you to choose.You probably already have a choice unit in mind based on the price, unit size and layout, floor and which direction it faces. Once you have selected your unit, you will need to pay 5% of the property price as cash deposit by filling up the blank cheque that you had previously submitted.You will also have to sign a set of Property Details Information (PDI) documents, which will include the floor plans of the unit, details of the condo development and other relevant documents. From there, you will be granted the Option to Purchase (OTP), which means your dream apartment unit is now reserved for you as a buyer! If none of your ideal choices are available by the time it’s your turn to select a unit, you can choose to pass, and your blank cheque will be returned to you at no penalty.

 

5. Secure your bank loan and sign the Sales and Purchase Agreement (S&PA)

Within 2 weeks after receiving yout S&PA, there are 3 things you need to do :
  1. Secure your bank loanWhile waiting, go back to the bank with your OTP to finalise your bank loan application. The bank will issue you a Letter of Offer, a formal contract that states the terms of the loan package.

2. Engage a property lawyer
You will need a lawyer who will see to the entire process of proper paperwork especially bank loan disbursement. Your bank may assist in finding you a lawyer, or you can choose to get your own. Conveyancing fees usually cost $2,000 to $3,000.

 

3. Sign the SP&A

 

Upon receiving the SP&A, you’ve got 3 weeks to exercise your OTP by signing the S&PA at your lawyer’s office. Your lawyer will be the one to deliver the signed S&PA back to the developer.

 

6. Pay the Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD) and another 20% downpayment

Within 14 days of signing the S&PA, all BSD and ABSD has to be paid. You will also have to pay another 20% of the purchase price as downpayment within 8 weeks from obtaining your OTP. The downpayment can be paid in cash, CPF, or a combination of the two. For foreigner, the 25% down payment can only be paid in cash.

 

7. Progressive payment for the rest of the condo

The remaining 75% of your condo price will be made progressively, depending on the various stages of completion by the developer :

10%: Upon completion of foundation work
10%: Upon completion of concrete framework
5%: Upon completion of brick walls of each unit
5%: Upon completion of wiring, doors and windows
5%: Upon completion of carparks, roads and drains
25%: Upon obtaining the TOP  – at this point, you can finally move into your new home!
15%: Upon obtaining the Certificate of Statutory Completion (CSC) – this is the legal completion date of the development

 

These progressive payments can be made via cash, CPF or a bank loan. Most homebuyers prefer new launch condos over resale condos because of this progressive payment scheme. They have more time to raise funds to pay for the condo at each stage, hence only need to take up smaller bank loan. In contrast, with resale condos, you have to make full payment at the start. Meaning to say, whatever shortfall in cash or cpf, buyers will to pay with a bank loan.

 

8. Finally, collect your keys to you new dream home !

The estimated TOP date is stated clearly from the OPT and S&PA and the developer has to honour it. Failing to do so will subject to penalities. Once the condo obtains the TOP, that’s when you can finally move in! Do a thorough check of your new home for any defects ASAP after getting your keys. Typically, there is a one-year Defects Liability Period when you take possession of your new home. Any defects in the construction of the home should be reported and rectified by the developer’s contractor.
Some Helpful Notes

 

Residential Home Loan Regulations (MAS)

 

The Monetary Authority Of Singapore (MAS) has stipulated guidelines on how much loan one qualifies and this is usually stated in terms of Loan-to-Value (LTV). This is the amount one can borrow to finance the property and is expressed as LTV ratio. For e.g. a LTV ratio of 75% means one can borrow up to 75% of the property value or price, whichever is lower. The remaining 20% can be paid via a combination of cash or CPF and remaining 5% must be paid in cash only.

 

The number of years needed to pay off the housing loan (loan tenure) will also affect the LTV ratio. If the loan tenure extends beyond age 65, the LTV ratio will be reduced, thus the amount one can loan from the bank is also reduced.

 

The number of existing housing loans one has will also affect the LTV ratio. A second home loan will see the LTV ratio reduced from 75% to 45% and the third home loan will have the LTV ratio reduced further to 25%.

Visit MAS – Rules For New Housing Loans for more information or call us for an in-depth financial discussion and planning.

 

 Stamp Duty Guide

 

 Buyer Stamp Duty (BSD)

 

In Singapore, BSD is payable on all property you that you buy. The amount of BSD to be paid is based on:

 

The purchase price of the property, as stated in the signed sale and purchase agreement; or
The market value of the property, as obtained from valuation reports of the property;

whichever is the higher of the two.

Buyer's Stamp Duty BSD

Additional Buyer Stamp Duty (ABSD)

 

Depending on your residency status and how many residential properties you already own in Singapore, you may also need to pay ABSD when buying residential property in Singapore.

 

Common residential properties include HDB flats, condominiums, terrace houses, bungalows, HUDC apartments and cluster houses. HDB shops with living quarters and shop-houses with portions permitted for residential use are also considered residential property for ABSD purposes

 

Just like BSD, the amount of ABSD to be paid is based on the property’s purchase price, or market value, whichever is higher.

 

The ABSD rates are dependent on the buyer’s residency status, i.e. whether you are a Singapore citizen, Singapore Permanent Resident or foreigner.

Additional Buyer's Stamp Duty ABSD

 

What if you are buying the property jointly with someone else?

 

 

When purchasing a residential property jointly with someone else, check whether different ABSD rates apply to both of you.

 

 

If so, the higher ABSD rate will be used to calculate ABSD.

 

 

For more information, please visit IRAS or come down and talk to us.

Purchase Timeline Guide

 

Building Under Construction’s Purchase Timeline

 

Penrose - Purchase Timeline

** This timeline can be EARLIER than stated. However, the Completion Date for the whole process is EIGHT (8) weeks from OTP date and not S&P date. Any delay must be requested in writing to the Developer of Penrose and is subject to approval by the Developer.

 

In the event that the purchaser did not exercise the S&P at the law firm within 3 weeks, the developer will be entitled to forfeit 25% of the booking fee, which is equivalent to 1.25% of the purchase price. The remaining 75% of booking fee shall be refunded to the Purchaser. Thereafter, the developer is entitled to sell the unit to any interested party.

 

The further progressive payment depends on the stage of the construction of the project. Please refer to “Payment Scheme” to find out more.

 

Normal Payment Scheme (NPS)

 

Also known as Progressive Payment Scheme, this allows you to service your loan via monthly instalments progressively stage by stage as the property is being built.

Penrose - Normal Payment Scheme

Disclaimer:

The details contained on this website are made available for information only. Whilst we make every effort to ensure that information is accurate, complete and up to date, we make no representations or warranties of any kind, express or implied, about the information and as such we cannot be held responsible for omissions, errors or inaccuracies, nor for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss of profits resulting from direct or indirect actions based upon the content of this website.

error: Content is protected !!
Scroll to Top