Before you pay a visit to any showflat, it is important to determine your financial capacity first. Your strength to buy not only relies on your income earnings but also the number of your current properties under your identity name. Besides, your maximum amount of funds you can possibly loan from the financial institution like a bank is also conditioned by a combined total amount of money of your monthly earnings commitments.
I am going to present comprehensive details on the five things you require to do prior to making a visit to any showflat. By the end of this article, you will definitely understand each one of them and put them into consideration. They are not limited to the following.
1. Check the number of CPF you can utilize for the property buy
You can use your entire Ordinary Account funds to purchase your total amount of CPF if you are a first-time property purchaser. The minimum amount of money you need to have to buy your second property amounts to $75,000 in your combined Special Account and Ordinary Account. The minimum amount was conditioned as of at 1st of July 2013.
2. Obtain your housing loan approval i.e in principle
This is one of the useful things that show suites cannot downplay but unfortunately, a majority of them usually overlook. It is a crucial requirement as far as buying a property is concerned. Failure to have it will make it hard for you to set your property to buy budget.
With your approval-in-principle, you will be able to understand the amount of money your financial institution will lend you for the purchase of your property. Note that, it is easy to acquire an AIP. It only takes about 3 working days for your bank to process one for you.
The documents you need for your bank to process your request include:
- NRIC of all buyers
- All your latest and updated credit card statements
- Your application form
- A cheque that goes to the designer(developer) project account
- HDB page to indicate your HDB status
- Latest three months payslip
- Latest twelve months CPF contribution
3. Understand your ABSD bracket
For those in Singapore, their first property is absolutely free of any ABSD. Nonetheless, both your second and third buys will be subjected to a tax of 7% and 10% on the buy price respectively.
For Permanent Residents, initial property buy is subjected to 5% tax on the buy price. Also, your property buys will be subjected to a 10% tax on the property price of the transaction. For Foreigners and Entities, theirs is subjected to 15% on the value of every property.
4. Know how NPS works (Normal Payment Scheme)
NPS is the standard scheme of payment that is used in the new launch of condominium projects. Knowing the progression of payment allows you to plan your money flow for the purchase of your property.
5. Know how the balloting process operates
Before the new launch condo, preview period of about 2 weeks is usually allocated for buyers to preview show flat and allow them to have a touch of the unit prices and unit. Purchases who get this opportunity in show gallery are normally given the chance to register on the date of the new launch and this enables them to be suitable to ballot for units. Discounts are always given to buyers who purchase during the day of the launch.
For the balloting process to occur you need the following documents:
- NRIC of the registrant
- Expression of the interest form filled and signed
- Cheque addressed to the designer(developer) project account
Note that, failure to buy any unit during the day of the launch, your documents will be returned to you.
You need to understand the above-mentioned things for your experience to be successful when you pay a visit to any showflat.