Buying a newly launched property in Singapore comes with unique factors to consider, including the Progressive Payment Scheme (PPS). Let's break down what this means and how it benefits you as a buyer.
Imagine buying your dream condo on an installment plan. That's essentially what the PPS is! Instead of paying the full price upfront, you make smaller payments linked to the building's construction progress. This ensures your payments adjust if the developer experiences delays.
The Progressive Payment Scheme offers a win-win situation for both you and the developer. With smaller initial installments, you'll benefit from increased cash flow during the construction phase. This can be helpful for managing other upfront costs associated with buying a property. Additionally, the PPS incentivizes developers to stay on schedule for construction milestones. Since they rely on these payments to continue building, they're more likely to keep the project moving forward. Finally, the PPS provides financial protection in case of construction delays. If the developer falls behind schedule, your payment obligations are tied to the actual progress of the building, offering some peace of mind.
The Progressive Payment Scheme offers a win-win situation for both you and the developer. With smaller initial installments, you'll benefit from increased cash flow during the construction phase. This can be helpful for managing other upfront costs associated with buying a property. Additionally, the PPS incentivizes developers to stay on schedule for construction milestones. Since they rely on these payments to continue building, they're more likely to keep the project moving forward. Finally, the PPS provides financial protection in case of construction delays. If the developer falls behind schedule, your payment obligations are tied to the actual progress of the building, offering some peace of mind.
At the beginning of your journey, you'll pay a booking fee, typically around 5% of the property's purchase price. This shows your commitment to the purchase and secures your unit.
Once the developer has granted you the option to purchase, you'll sign the Sales and Purchase Agreement. At this stage, you'll need to make an initial payment, which is typically around 15% of the purchase price minus the booking fee.
As construction progresses, you'll make periodic payments, known as progress payments. These payments are typically tied to specific construction milestones or stages, such as the completion of the foundation, structural works, or the issuance of the Temporary Occupation Permit (TOP).
The last payment is due upon the completion of the property and the issuance of the Certificate of Statutory Completion (CSC) or TOP. This final payment, also known as the completion payment, includes the remaining balance of the purchase price and any other fees or charges.
The Progressive Payment Schedule is designed to provide transparency and flexibility throughout the purchasing process. It allows you to manage your finances effectively, as you pay for your property based on its construction progress. There may be instances where the developer completes several construction stages at once. In this case, you'll be notified to pay for all the completed milestones collectively. Similarly, if you're buying a unit after the launch and construction has already progressed, you may need to make several milestone payments upfront to catch up with the current construction stage.
Each development may have its own specific payment schedule, so it is essential to consult with the developer or engage a trusted real estate professional to understand the exact payment milestones for your desired property. If you are embarking on your journey to homeownership today, consult our team at PropertyGiant Singapore and we are able to guide you through securing your new launch private property in Singapore.
