The noise about the recovery of the property market in Singapore is getting louder and recently, we even hear of an enbloc deal almost everyday. What is going on? Is it time to get in on the action before it runs away again.
Have you heard about the Deferred Payment Scheme? Well, I know you don’t know these 10 things otherwise you wouldn’t even bother to read this. So here goes:
- The current Deferred Payment Scheme is NOT the same as the previous Deferred Payment Scheme! The previous Deferred Payment Scheme that applies to uncompleted projects has been withdrawn indefinitely!
- This Deferred Payment Scheme can only be offered by developers who have obtained the Certificate of Statutory Completion (CSC) for the projects. The projects are fully completed. You can see and touch and assess the quality!
- The developers are financing you to buy their completed project plus giving you a discount. Yes, I am not kidding.
- The developers are financing you to buy because if they don’t, they end up paying more in duties or extension in QC or ABSD to the government because they cannot have leftover units after 5 years. This Deferred Payment Scheme is offered as a private treaty, or private agreement between you and the developer.
- You can move into the apartment immediately and pay later! After you pay the 20-30% downpayment plus the stamp duties, you get the keys and you can either rent it our or move in.
- There is NO monthly payment to the banks until teh deferred period which is 24/36 months is over.
- TDSR does not apply neither is there any credit check either because you are not taking a loan! The downpayment is the consideration.
- Deferred Payment Scheme is coming to an end soon. The supply of completed project is drying up and the developers have a very small landbank left, that is why they are now frantically bidding or buying enbloc land to beef up their pipeline for the recovery.
- Deferred Payment Scheme is the best scheme ever because the developers underwrite all the risk for the buyers!
- Since its inception, many have taken up Deferred Payment Scheme. OUE Twin Peaks is almost sold out, Peak at Cairnhill 2 is soldout, Gramercy Park North Tower is sold out and many many units are moving everyday. Yes, many are already buying. It is not too late yet but start looking now!
It’s not too late.