If I have a million and I buy a new PC that cost 900k. I do not want to take loan and I can full according to the payment scheme, can I do that? Or I must still take a loan or must pay full upon S&P?
Thanks in advance.
If I have a million and I buy a new PC that cost 900k. I do not want to take loan and I can full according to the payment scheme, can I do that? Or I must still take a loan or must pay full upon S&P?
Thanks in advance.
No need to take loan if you have enough money to pay up.
If the new PC has not TOP yet, you just pay progressive payment.
If TOP, then you pay 5% first, followed by 15% later, then the rest when you get the keys.
Originally Posted by 4wheels
u can dun take loan but not advisable. juz pay according to the billing by the developer.
heard tat iras will come after u to check on u, not sure how true it is ...
but den again, paying all in full is not a very capital maximising approach
Thanks, so who check if I have enough?Originally Posted by princess_morbucks
Nobody willl check whether you have enough, but yourself.Originally Posted by 4wheels
If you don't have enough, then the seller will forfeit a certain percentage (i think 25%) of your booking fee if you don't exercise the option.
Once you exercise the S&P, there is no turning back.
You are the owner of the unit and if you don't have money, you will have to sell the unit, and be subjected to SSD.
Can I take loan after halfway through? Meaning after paying 50% (maybe 2years from S&P for a new launch project. of the sale pricesOriginally Posted by princess_morbucks
As long as you have money to pay the progressive payment, the developer doesn't care where the money comes from.Originally Posted by 4wheels
If you decide to take a bank loan half way, yes, why not?
But then the bank will decide your financial situation at that time and will decide how much it will loan you and for how long, depending on your age and depending on restrictions imposed by MAS at that point in time.
not true, if i'm the developer, i would want some form of guarantee that you can finance your purchase and not run into arrearsOriginally Posted by princess_morbucks
yes you can do that. there is absolutely no need for you to take a loan.Originally Posted by 4wheels
my relatives buy their singapore properties using progressive payment scheme. they didnt have to take a loan.
That's something that I'm curious over. Is it written in the S&P or elsewhere that the developer has the right to ask for some form of guarantee for cash purchase? Does the developer make this clear to the buyer before signing the option?Originally Posted by eng81157
i can't comment since i don't have a S&P document or am i a conveyancing lawyer.Originally Posted by proxon
i'm just commenting that if i were a business owner, i would want some form of guarantee from a buyer who is yet to pay me in full. i'm merely protecting the interests of my business.
but I hv never seen S&P stating for any form of guarantee wor ....Originally Posted by eng81157
actually I dun tink the developer cares if u can pay onot, cos the bulk of the payment is due way b4 the project TOP. u r at a losing end if u default, not them.
For banks it is diff. They started payment for u at a very early stage. not only they wan assurance fm u tat u can pay, they oso make u pay for ins to ensure tat the unit is sibeh secured
i am sure they would protect themselves in a way. or else, any tom, dick and harry can just walk in and buy.Originally Posted by mermaid
let me state that you are flat wrong.Originally Posted by eng81157
any tom, dick, harry can just walk in and buy as long as he can pay the downpayment.
Yup.... Remember deferred payment scheme in the past ????Originally Posted by hopeful
when signing the papers at the legal firm, the lawyers will definitely do a background check.Originally Posted by hopeful
not to do so is simply imprudent, on the part of the business owner. why let any tom, dick and harry buy only to default?
First they take a 1% downpayment.... So if you dont exercise, they take the downpayment.... Once you exercise, you have to place another 4%... And the drawdown occurs progressively... So developer has no risk.... They already holding your money....Originally Posted by eng81157
For the progressive payment portion, lawyer will send you the progress payment and you need to write the check... Hahahahaha
The lawyer assumes you can afford... You cannot, your problem...
and you don't pay up after 20%? sue you to recover money, waste time and money doing so?Originally Posted by chestnut
besides, the buyer's conveyancing lawyers should also advise accordingly too
Correct me if i am wrong. When u take loan, the bank lawyers will definitely lodge the caveats. If you don't take loan, you can choose not to lodge the caveats. This explains why the caveats lodged are usually lower than the actual units announced sold.Originally Posted by eng81157
Brudder, you go in to new development and put a downpayment of 1% to buy a new unit.... You dont exercise the option, see if developer will sue you or not... HahahahaOriginally Posted by eng81157
Can you remember the deferred payment scheme???? Hahahahaha
Brudder, read this
http://ownsgproperty.com/what-is-pro...ferred-payment
the person who posted the thread wasn't talking about the option. just chiong kong lah, everyone knows that.Originally Posted by chestnut
he's talking about 50% and beyond. what are the mechanisms, besides repossession, a developer employs to protect itself?
even if buyer defaults and the developer can repossess the unit, that's already a form of guarantee. of course, there would be a waste of resources to do so.
Yes, 1% option buys you the right so developer cannot sue if you don't sign. But assuming 20% of 1 million (200K) has been paid, then developer already 'pow chiak', so if buyer defaults, developer should be more than happy unless there is a property crash beyond 20%. So, come to think of it, risk to developer is very small and their reward/risk is very high.Originally Posted by chestnut
Dealing with developers means you are buying BUC so you should be paying 5% option fee direct, right?Originally Posted by chestnut
Developer v happy... just swallow your option fee and then makan the next buyer in the line! Not 1% lah!Originally Posted by chestnut
if the developer has deep cash reserves, no problem. if your developer is like those half-baked ones in malaysia that leaves condo half-built, then this becomes a significant issueOriginally Posted by proxon
Yes, in this context. The developer might go bust once they have cash flow problems. The risk to buyer in this context is much higher.Originally Posted by eng81157
It won't happen in singapore. There are protection mechanism in placeOriginally Posted by eng81157
what? which lawyer does a background check unless specifically asked to do so? then again, your financials are private, how will they check.Originally Posted by eng81157
if you default after paying say 20%, based on market situation, developer may just absorb the 20%, let you go, and remarket the unit at the full price. have seen it been done before.
unless an owner is desperate for the cash, who doesnt want "free" 20% AND gets to keep the property? i wouldnt even waste time on lawyers.
i have only had 1 buyer get cold feet after exercising his 4%. i let him back out by forfeiting 70% of his 5% and return him back the 30%. sold to another buyer at the same price a month later.
whatever it is, so I can buy a new PC without taking up load as long as I can pay later. Also, I can take loan any time even after 50%, 60% pay up to the developer.
I understand that it best to take loan due to the low interest rate. What if the interest rate up to 5%, then, when I buy, I pay hardcash for downpayment and subsequence payment so that I can avoid the interest pay the bank for loan.