Have you been keeping an eye out for new launch condos 2022 in Singapore? Buying your first house can be an overwhelming experience, but it doesn’t have to be. Buying an Executive Condominium (EC) in Singapore for the first time is a significantly different experience than buying a new launch private property.
Condominiums, like many other aesthetically pleasing objects, are not that cheap. Because of this, purchasing a new launch unit may be the most economical way to own a home. The developers have included a number of incentives, such as rebates for stamp duties and early bird discounts.The only drawback is that you will have to wait at least three years for the unit to be constructed. But if you’re willing to put in the effort and time, we say to dive right in.
At Singapore Property Launches, you can find the most up-to-date information about every recently launched and soon-to-be-launched condo project in Singapore. In this article, you will find a comprehensive guide to buying a new launch condo 2022 in Singapore.
Sort out your sums
To buy a Singapore condo in a new launch, this is the first and most crucial step. Understanding your budget and the maximum amount you may spend on a property is necessary to make a wise financial decision. When you have a good idea of how much house you can afford, you can avoid overspending. Unless you can pay cash, a mortgage will be necessary to finance the purchase of your new house.
It’s best to find out if you’re eligible right away so you don’t sign a contract and lose 25% of your registration fee to the builder. You might think you’re deserving of a hefty loan, but the banks have all the cards. That’s why it’s smart to get a bank’s In-Principle Approval (IPA) first, so you know roughly how much you can expect to borrow if you decide to apply for a loan later. Besides, you don’t have to rely solely on a bank loan to finance the purchase of a brand new condo. You can also employ CPF money to do so.
Shortlist properties
After the money is in place, research the market and narrow down the list of possible projects. When buying a new launch condo, you should look for nearby amenities, transportation links, the direction the sun shines, and the view from the unit. You can find all of these things on the 3D map. If you feel that you don’t have the time to look for every new launch property, you can hire services of Singapore Property Launches.
Visit show flats
Once you’ve gathered all the information about new launch properties and created a shortlist of potential new condos, it’s time to check out the actual display units. Buyers of a prospective condo development can schedule appointments to view available units in the developer’s show flats roughly two to three weeks before the exact declaration of the launch. Show apartments feature a scale model of the property, a site plan, a floor-by-floor tour, and other amenities. If you’re interested in purchasing a brand-new condo at launch, you can do so by submitting an Expression Of Interest form.
A blank check made out to the developer’s project account should be sent with the EOI form. If you decide to move forward with the purchase, the blank check will serve as the 5% booking fee for the property, and the actual purchase price will be entered into your bank account at that time. However, if you change your mind after submitting the EOI form and check, they will return them to you without any repercussions.
Booking Your New Launch Condo
On the day of the launch, when you’ve chosen your apartment, you can sign the Option to Purchase (OTP) and pay the 5% booking fee using the blank check you previously gave the developer. If you sign the OTP but then change your mind about making the purchase, you will have to fork out a percentage of the booking charge (often 25%) as a penalty. With the OTP, you can finish up your loan with the bank of your choice. Having legal representation during the conveyancing process is highly recommended.
Finalizing Sales & Purchase agreement
You can now go to the bank to finalize your financing for the brand-new condo launch with your OTP in hand. To help you better understand the terms and conditions of the loan being extended to you, your bank will provide you with a Letter of Offer. You should take care of this right away to avoid any delays in your loan and its subsequent disbursement.
You should expect to receive the Sales & Purchase Agreement (S&P) from the vendor within two weeks of signing the OTP, at which point you can officially exercise the Option. Within 8 weeks of activating the OTP, you must pay the remaining down payment of 15% of the purchase price in cash or CPF funds.
Start paying
When new launch developments reach a construction milestone, the bank pays developers every few months. In general, you may expect to pay between 5% and 10% of the total price each time. Continue making payments until you have a valid Temporary Occupation Permit
(TOP). There will be an increase in your mortgage payment each month as more money is given to the builders.
Collect your keys
You will be able to pick up the keys to your condo once your project achieves TOP. You or your attorney will be notified when the property is vacant and ready for possession. The only thing left to do is make sure there are no problems with the unit and then settle in!
And that wraps up our comprehensive guide to investing in new launch condos 2022. Don’t miss out the latest updates about new launch properties at Singapore Property Launches.
