Private condo payment timeline: New launch vs resale

The five Cs of Singapore

You remember the all famous five Cs that makes a Singaporean financially successful.

• Cash
• Car
• Credit Card
• Condominium
• Country club membership

Of all the five Cs mentioned above, only a few withstood the test of time.

With cashless payments and mobile wallets becoming a thing, physical cash is now starting to be seen as an inconvenience.

A country club membership is no longer a thing in our generation and almost anyone on the street has a credit card now.

Choose your poison.

Decide between a luxurious sports car…

Or a condo in the prime districts of Singapore to pamper yourself with your hard-earned salary.

If you want to be really practical about it, a private apartment probably makes the most sense.

Especially for single Singaporeans, below the age of 35 years old, who can’t wait to get their own home.

But when it comes to buying a condo, the downpayment is usually the first cost that hits a buyer.

“That feels when condo cost hits you in the face.”

To better prepare you for the initial sticker shock as well as the potential cost of a condo.

We’ll be looking at the repayment schedule for a private condo — both new launch and resale — to help private home buyers make a smarter financial decision.

To break things down better, we’re going to assume that you’re getting a $1 million private condo .

TL;DR: How much do you need to buy a newly launched private condo?

For a $1,000,000 newly launched private condo, assuming bank interest rate at 0per cent (which is impossible), this is how much you need and how your payment schedule will look like

Here are some pointers to take note of:

• If you choose not to sign the S&P Agreement, 75 per cent of your booking fee will be refunded.

When it comes to the last payment, there are two scenarios:

• Scenario 1:
  Where legal completion of Sale & Purchase occurs before the issuing of Certificate of Statutory Completion (CSC)
  In this case,
  2 per cent will need to be paid to the developer on legal completion
  13 per cent to Singapore Academy of Law (SAL) as a stakeholder.
  (8 per cent to be released within 7 days of notice of CSC, 5per cent to be released on expiry of 12 months after date Purchaser receives Notice of Vacant Possession)
• Scenario 2:
  Where CSC is issued before legal completion of Sale & Purchase
  In this case,
  13 per cent is to be paid as follows within 14 days after Purchaser receives notice of CSC.
  (8 per cent to be paid to the developer, 5 per cent to be paid to SAL as a stakeholder, to be released on expiry of 12 months after date Purchaser receives Notice of Vacant Possession)
  The last 2 per cent to be paid to the developer upon legal completion

How much do you need to buy a resale private condo?

If you wish to get a resale instead, assuming a $1,000,000 private resale condo, and again 0per cent bank interest rate, this is how your payment schedule will look like.

Fee payable	Approximate timeframe	per cent purchase price of fees payable	Amount payable	Payment Method
Grant of option (Booking fee)	-	1 per cent of purchase price	$10,000	Only Cash
Exercising option (Option fee)	With 14 days after granting of option	4 per cent of purchase price	$40,000	Only cash
Legal fees	S&P Agreement sent to your lawyers	Between $2,500 to $3,000	$3,000	Cash/ CPF
Buyer Stamp Duty (BSD) or Additional Buyers Stamp Duty (ABSD)	Within 14 days (from signing of S&P Agreement)	1st $180,000: 1 per cent 2nd $180,000: 2 per cent Remainder of purchase price: 3 per cent	$24,600	Cash/ CPF
Valuation fee	–	$350 – $500	$350	Cash/ CPF
Completion of sale and purchase (Done at lawyer's office)	8 to 12 weeks after exercise of option	95 per cent of purchase price	$950,000	Cash/ bank loan (Bank loan can be paid using cash or CPF)
Total: $1,027,950

Getting your own home

Getting your own home is a big-ticket purchase.

So it’s important to understand the payment schedule in order to better allocate your funds and plan your finances accordingly.

If you’ve got your finances sorted out and are sure about committing to a condo.

Maybe this guide on how to choose the best condo unit will help.

This article was first published in Seedly.