SC Global Developments Pte Ltd, a developer of upmarket residences, on Thursday unveiled an Enhanced Purchase Plan that allows prospective buyers of its Hilltops condominium to earn a 10 per cent return per annum on a 20 per cent downpayment - in what is believed to be the first such financing scheme in the market.
Prospective buyers will be given a two-year option to purchase the units at a price that is fixed today, said SC Global. It added that the units for sale are among the 30 owned by SC Global and leased out to tenants, from which the 10 per cent yield will be secured.
As an example, a 20 per cent downpayment on a S$3 million unit, or S$600,000, will generate an annual income of S$60,000 per year or S$120,000 over two years for the prospective buyer, while also saving him two years of mortgage payments amounting up to S$100,000.
Chairman and chief executive officer of SC Global Simon Cheong described the plan as "unique" and designed in response to prospective clients who are keen on SC Global's property but "for various reasons, have some constraints in timing and need the additional flexibility".
Mr Cheong added that the two-year option will give these buyers the security to buy at a fixed price today and allow them to generate a healthy return on their downpayment during the interim. "It facilitates genuine home ownership by addressing some of these constraints."
According to SC Global, the Enhanced Purchase Plan will benefit three groups of people. The first are those who already own a property and want to upgrade as their family has expanded, but need the flexibility of time to sell their existing property and do not want to be burdened by two mortgages. The second are older Singaporeans who plan to downsize in a few years, as it gives them the necessary time to plan ahead to dispose their property; and the third, Singaporean expatriates planning to return home in a couple of years and who want to secure a property today, but find it difficult to manage a property and tenant while overseas.
Hilltops, which sits on a prime, freehold site at the peak of Cairnhill, has 241 units in two 20-storey blocks and an adjacent 14-storey block. The 30 released units comprise two and three-bedroom apartments of 800-1,700 sq ft, with prices ranging from S$2.5-6 million.
This article was first published on July 29, 2016.
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