It is fundamental to determine your financial capabilities before deciding to visit the swanky showflat.
Therefore, in simple terms here is a list that you ought to adhere to before making a trip to your showflat:
1. Get your housing loan AIP
Getting a loan AIP( approval –in-principle) is the most crucial thing that buyers often overlook yet it is an essential requirement when purchasing the property. Having an AIP, you will be able to know what the banks are willing to lend you and loan processing will be quicker.You will require the following documents:
- Application form
- Latest credit cards statements
- You should have Passports of all purchases or a copy of NRIC.
- Declaration form
- Most recent three months payslips
- If you are employed, you will require the latest 12 months of CPF contribution
- Latest 1-year IRAS tax assessment return.
2. Have a comprehensive knowledge on Balloting process
You will be given a preview period of 2 weeks to access the showflat before the launch of the condominium. In case you preview the snow flat during this period you will be given a chance to register for a non-obligatory seat for the launch day.
This registration will allow you to be eligible for ballot units before the launch before they are randomly sold. Additionally, early bid discounts will be offered for those who will buy during the launch day. You will require the following documents to register for balloting:
- A cheque addressed for developer project account.
- A copy of registrants NRIC.
- An expression of filled and signed interest form
3. Understand how NPS works
The Normal Progressive Payment Scheme is the current standard payment scheme which is mostly used in launching condominium projects. Therefore, understanding this will be helpful when you are planning for your cash –flow for your property purchase. It is vital to note the following:
- A payment of 5% has to be made in exchange for OTP.
- Within two weeks, the developer will respond by sending sales and purchase agreement.
- You will have three weeks to exercise your contract upon the receipt date of S &P.
- After this, you will be required to pay ABSD and Stamp duty after 14 days.
- The remaining 15% is payable within eight weeks dated from the initial OTP.
4. Check the amount of CPF you can use for the property purchase
The maximum amount of CPF for a beginner in property purchase is using your entire Ordinary account. However, if you are purchasing for the second time you have to have at least $75,000 in your special account and combined OA.
5. Know your ABSD bracket
It is essential to know your Additional Buyer Stamp Duty which is crucial in today’s market. If you want to have permanent Residents your property purchase will be taxed at 5% of the initial purchase price. Subsequently,10% will be imposed on the transacted price. However, if you are a foreigner, 15% will be taxed on the amount of each property.