Are you planning to visit any new launch showflat event? If you yes, then you need to first determine your financial strength before visiting there. There are certain things that you must know. Your power of purchase is not only limited to your income. But there also may be many existing properties under your name. Also, you must know about the maximum amount of money that you can loan from your bank. To simplify everything, here are the 5 most important things you must do, before you visit for the launch of new condominium.
#1: Know about your CPF usage
You must know how much CPF or central provident fund you can use for your property purchase. In order to find it out, you can log in to the CPF account through your SingPass. You can find out how much can you use for purchasing your property. This can help you a lot in planning your budget if you are looking forward to own another property. So, you will be prepared about the finances when you go for the show gallery of newly launched flats.
#2: Know how much you can loan from bank
When your CPF is settled now, you can ensure whether or not the bank is willing lend you money for your purchase. With the enforcement of MSR or TSDR, in today’s market, it has become really harder for people to get approval for the loans. So, you may need to apply for an AIP or Approval in Principal. You can do that by simply approaching any mortgage broker or any banker.
#3: Know the stamp duty obligation
It is important to know your Additional Buyer Stamp Duty (ABSD) bracket. As a Singaporean citizen, you will fall in different stamp duty bracket. For the 1st property, if you are a permanent resident of Singapore the bracket is 5%. For the same, if you are a foreign resident, the bracket is 20% ABSD. For the 2nd property, the ABSD bracket of permanent and foreign residents are 15% and 20% respectively.
#4: Knowing the normal progressive scheme
Another thing that you have to know is how the normal progressive payment scheme works. Many new launched condos have specialized in this payment scheme. This is important to know how the cash flow works in advance. You have to make an initial deposit of 5% and then the agreement of sales and purchase will be issued. Next you have to pay the stamp duty and the remaining 15% deposit in cash or via CPF.
#5: Knowing the balloting process
Most of the developers will usually prefer a preview period of 1 to 2 weeks. So, you can freely go for the showsuites and feel free to check the prices and sizes. During this preview period, you can register yourself for the ballot before the condos are showcased publicly. Here, for registering you will need a photocopy of buyer’s identification card and expression of interest form filled and signed. You must also issue a cheque in the name of developer’s project account.