Condominium units are quite expensive. And a new launch condo can be a great option for you to own a unit. You expect to enjoy hefty discounts from the developers such as early bird discounts, vouchers and stamp duty reimbursement. However, you need to wait around three years before the unit gets built. Read on to know how to go about buying yourself a new condo Singapore.
Ensure your Finances are in Order
Evaluate your finances and determine how much you can afford for your unit. Sorting out your finances from the start will save you lots of money. Obtain an approval-in-principle to get a bank loan and check how much savings you have from the Central Provident Fund. Also, take into account the miscellaneous costs and fees as well as extra buyer’s stamp duty.
Look Around for New Launch Condo Developments
At this point, you will want to work with a property agent to guide you through the buying process. Also, your agent will research available developments for you. But if you choose to go through the process on your own, browse through newspaper pages and website pages to find these developments.
Visit the Developer’s Show Flats
These events often take place around 1-2 weeks before the condo’s official date. This is not the buying stage yet and you won’t know how much the unit is priced. But you may get an indicative price from the developer. If you are interested, complete an Expression of Interest form and hand this to the developer, together with a blank check addressed to the project account of the developer. This allows you to take part in the ballot system as the launch takes place. You will then get an invitation to book a unit in the development. And once you have booked a unit, you will be given the Option to Purchase.
Be Represented by a Solicitor
You will use a copy of the Option to finalize your loan in a bank. At this point, you may be provided with a Letter of Offer by the bank which contains terms on which they offer you a loan. Also, a solicitor will act on your behalf in the purchase and deal with the conveyancing issues. In case you are taking a loan from a bank, the latter may recommend a solicitor from its panel.
Get the Sales & Purchase Agreement
When you get this document, you need to sign it within three weeks and exercise the option. This means paying the 15% exercise fee and the Buyer’s Stamp Duty.
Begin your Payments
Uncompleted developments will require you to pay every few months. This means that you have to pay the 5% to 10% of the price every six months.
Check out http://www.newpropertyguide.com for more information on buying condo units in Singapore.