Getting a new house or home is always very exciting. It is likely one of the greater investments that you would make in your lifetime. However, there are so many to choose from in Singapore and so we have done a guide on how best to look out for before you step into a Showflat and when you step in a Showfat.

5 Essential Steps BEFORE Stepping Into A Showflat

  1.  Check your CPF

– First time buyers – able to use all funds in Ordinary Accounts

– Second time buyers – Must fulfil the minimum sum requirements in the CPF Accounts. Bear in mind the full retirement sum is $161,000 as of 1 July 2015.

  1.  Get Your Loan Approved (at least in Principle)

– Approach any local bank and ask how much you can borrow

– You would need to submit the necessary documents

– You can be expected to get approval within a few days

– Get the bank to confirm the loan amount

– Use mortgage broking sites to compare the interest rates depending on your needs

– Please note that this is a free service

  1.  Know your ABSD (Additional Buyer Stamp Duty)

– For Singaporeans:

First house:  0%

Second house: 7%

From third house onwards:  10%

– For Permanent Residents

First house:  5%

From second house onwards: 10%

– For Foreigners/companies

From first house onwards:  15%

  1.  Have a good understand of the Progressive Payment Scheme

Typically:

  1.  Date of booking – Issue OTP(Option to Purchase) and pay initial deposit of 5% in cash/cheque
  2.  Within 2 weeks – Developer to issue SPA (Sales and Purchase Agreement)
  3.  Within next 3 weeks – Buyer to exercise the OTP
  4.  Within next 2 weeks – Buyer to pay Stamp Duty
  5.  Within next 1 week – Buyer to pay remaining 15% (with deposit in cash/cheque and/or CPF)
  1.  Pay 10% upon completion of foundation works
  2.  Pay 10% upon completion of concrete framework
  3.  Pay 5% upon completion of brick walls
  4.  Pay 5% upon completion of roofing and ceiling
  5.  Pay 5% upon completion of wiring, doors and windows
  6.  Pay 5% upon completion of carparks, roads and drainage system
  7.  Pay 25% upon obtaining TOP (Temporary Occupation Permit)
  8.  Pay 15% upon obtaining CSC (Certificate of Statutory Completion

– Please note that each development may varies the timing slightly

  1.  The Balloting Process

When a development is on demand, there would likely be a balloting system during the day of launch.  Prior to it, there is usually a preview period of 1 to 2 weeks whereby the buyers can gauge for themselves on the feel of unit sizes, estimated prices, the facilities available and the quality of the unit.

If there is more than 1 buyer for a specific unit, the process will be balloted.  The ballot system is usually done within the showflat and transparent to all who attend it.