View Full Version : Why some people like progresive payment?
Understand that a lot of investors like to buy new property cos of the progressive payment scheme is it because of better cash flow less outlay etc etc what are your thoughts:confused:
CondoInterested
27-07-13, 15:19
No special reason, just because it's like this, then just follow lor.
Since already committed, it's a matter of time the money will go to the developer. But it's better to stay in the bank or CPF longer, see more money feel siok mah.
princess_morbucks
27-07-13, 15:21
Most of the time, there is no choice, it's either progressive payment or deferred payment. If paid by deferred payment, then the price is usually higher.
http://www.ura.gov.sg/lad/HBG/progressPayments.htm
On 26 Oct 2007, the Government withdrew the deferred payment scheme, i.e. applications from developers to offer deferred payment scheme for new housing projects will not be approved.
However, developers who have already obtained the Controller’s approval to offer a deferred payment scheme may continue to offer it to purchasers after 26 Oct 2007.
The SSD also make the wait to TOP worthwhile. From cash flow POV
princess_morbucks
27-07-13, 15:25
The SSD also make the wait to TOP worthwhile. From cash flow POV
In a way, some developers help the buyer by delaying the TOP to 4 years, so the buyer can sell without incurring SSD on TOP.
Progressive payment help poor people like me buy more properties. More time to accumulate every 3 years until cooling measures put a stop.:D
Progressive payment help poor people like me buy more properties. More time to accumulate every 3 years until cooling measures put a stop.:D
hmm makes sense:cheers5: but nowadays kena cm worse than kena cane:doh:
Besides the points mentioned by some of you, I guess most if them are buying a hope. Hope to make money when TOP to sell or rent out.
Understand that a lot of investors like to buy new property cos of the progressive payment scheme is it because of better cash flow less outlay etc etc what are your thoughts:confused:
People Buy new launch mainly for progressive payment + 4years to TOP to escape SSD, else who so stupid to pay premium of 20->40% above surrounding similar properties?
Don't believe?
Ask govt to introduce custody CM where all new launch need to take up full loan immediately, gov act as custodian to disburse to developers progressively, see whether still so many want to buy new launch? Gov also Huat because can earn interest from money under custody.
Understand that a lot of investors like to buy new property cos of the progressive payment scheme is it because of better cash flow less outlay etc etc what are your thoughts:confused:
Many people here bought new launches. Do most of them bought because of progressive payment?
I believe TS himself bought new launch project too.
I had bought new launches before too and definitely not because of that reason.
It can be very time consuming looking at the resale market and also a hassle to renovate and maintain older apt for some.
Understand that a lot of investors like to buy new property cos of the progressive payment scheme is it because of better cash flow less outlay etc etc what are your thoughts:confused:
u bought from developer too. Really due to progressive payment? u understand from who?
Hope Office Boy can contribute to this new vs resale conversation.
The main reason people buy new launch is surprisingly (in my view) - MARKETING!
Trust me, if the 737 people in Jurong knows VERY VERY well that they are paying record prices compared to the PC a few metres away, many of them will not proceed.
Office Boy used to buy new from developers also, but last time premium is only about 10-20%. From any investment view, the 20% deposit you pay sits with the developers for years without return! Compared with resale, you get the rental immediately!
And if you are smart enough and buy something that rental just locked in, you assured of rental income for 1-2 years!
Think, my friends, Think!
DKSG
Many people here bought new launches. Do most of them bought because of progressive payment?
I believe TS himself bought new launch project too.
I had bought new launches before too and definitely not because of that reason.
It can be very time consuming looking at the resale market and also a hassle to renovate and maintain older apt for some.
I prefer to buy resale, so that I can see the environment (inside and outside), and I can renovate it to whatever I like. Best part is can collect rental immediately (if there is existing tenancy)
I am not here to debate resale vs new launch. In fact, i find selective subsale 1year before TOP can be quite a good bargain. Most of the time, u get to enjoy an instant capital appreciation upon TOP.
I posted because i do not believe alot of buyers bought new launches because of the progressive payment. Could be some but definitely not the majority.
Other than some exorbitantly priced new launches, my own search found that some new launches (primarily in OCR) to be more affordable.
For example, a search led me to find that relatively new condos, even some ECs were being priced higher than new launches in OCR.
There are of course some new launches that are significantly more expensive (such at J Gateway, Oceanfront suites) as compared to surrounding existing developments.
In terms of payment, maybe some slight advantage is that you get to gradually increase payment for mortgage , which may provide some buffer (especially since you've spent so much on downpayment). Some people take loans frm family and friends for downpayment, so at least it gives them time to clear their debt before even starting to pay their monthly mortgage.
However, I agree with points highlighted that it is so much better to buy existing units, granted they are not too old (wld require significant reno etc). Immediate rental, immediate occupancy etc, can stop renting a unit (if you are renting) and immediately move in.
u bought from developer too. Really due to progressive payment? u understand from who?
yup ur right i bought from developer and understand from myself:D until know still trying to understand myself:doh: thank god for condo forum so csn help me understand myself:scared-4: i believe many people here still dont understand themselves when comes to buying property:banghead::D
I am not here to debate resale vs new launch. In fact, i find selective subsale 1year before TOP can be quite a good bargain. Most of the time, u get to enjoy an instant capital appreciation upon TOP.
I posted because i do not believe alot of buyers bought new launches because of the progressive payment. Could be some but definitely not the majority.
the market today is such that most of us are carrying a gun with only one bullet you only got 1 chance to fire i.e buy a property whether resale or new launch:confused: if you fire wrongly thats it GAME OVER:scared-4:
I prefer to buy resale, so that I can see the environment (inside and outside), and I can renovate it to whatever I like. Best part is can collect rental immediately (if there is existing tenancy)
yup good point i miss that having bought a new launch after firing my gun with ONLY 1 bullet:cool:
Brudder Radha, let me paint a few scenario on why a person buy from developer or not. Just a 2 major ones hor... Actually got many more...
1. The person buying for own stay
- want certain floor
- want certain facing
- want certain orientation
- feel will have no problem for a few years because of 1 year defect warranty and new.
- no unknown unlike buying resale whereby pipe may give way, marble below may be hollow, etc....
this group of people, higher % will buy newer car because they want trouble free... Compared with below group hor).
2. The person buying for pure potential monetary gains
- must be cheaper than neighborhood units by x% (x% is per determined prior to any investment). So they will go for resale....
- looks more at nearby development and predicts the potential of the area...
- if sees new launch units going for a value way above the resale units, will jump in like tiger... Hahahaha
This group of people, higher % will buy older car because value for money
Think of this like new and old car market... If everything is based on monetary, nobody will new car leh.....
Actually got some more reason... I like to study human behavior leh, so I know when the herd moves, etc.... All this will always give me an advantage leh.... Hahahahahaha... Joking lar...
:rocking-the-decks: :cheers5: :cheers2: :cheers3: :cheers4:
I was the kiasu investor who want both ways. So i only bought MMs that were near to TOP. most of them are undervalued coz their full potential has not been reached. Do you realise as an effect of the way our progressive payment scheme is structured, the property is only effectively 60% of its full value just before TOP? (or rather, the owner had only paid up 60% of it)
Plus I have absolutely no patience to wait more than a year for my new home to be ready.
For own stay, same applies. If you can wait for 4 years for your replacement home, you dont actually need one.
Buy properties that are near Far East Org projects. High chance that your property will increase. :D
I was the kiasu investor who want both ways. So i only bought MMs that were near to TOP. most of them are undervalued coz their full potential has not been reached. Do you realise as an effect of the way our progressive payment scheme is structured, the property is only effectively 60% of its full value just before TOP? (or rather, the owner had only paid up 60% of it)
Plus I have absolutely no patience to wait more than a year for my new home to be ready.
For own stay, same applies. If you can wait for 4 years for your replacement home, you dont actually need one.
Buy properties that are near Far East Org projects. High chance that your property will increase. :D
Please also include Cheung Kong.....
Bro, since u know whose are high price and will cause neighbor to rise... Now I ask u, which developers tend to underprice???? Hahahahah
UOL. Look at Southbank and Waterbank. Do not buy capland property. His EX ceo not too gd with property development. make money from reits only. Hve even bought an underpriced property fm him.
Please also include Cheung Kong.....
Bro, since u know whose are high price and will cause neighbor to rise... Now I ask u, which developers tend to underprice???? Hahahahah
UOL. Look at Southbank and Waterbank. Do not buy capland property. His EX ceo not too gd with property development. make money from reits only. Hve even bought an underpriced property fm him.
Hahah... Please include double bay, Minton....
Look at Sim Lian - clover, carabelle, waterview, att, etc...
But capland sold citylights quite cheap leh...
Did you notice the large plot of land at kallang riverside and another new station near the casket? Waiting for concourse skyline to TOP and Southbeach and sin-mal development to be launched soon.
Hahah... Please include double bay, Minton....
Look at Sim Lian - clover, carabelle, waterview, att, etc...
But capland sold citylights quite cheap leh...
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