Updated: Dec 22, 2021
A home is where the heart is. However, single Singaporeans might have to wait till 35 years old to apply for a home (HDB flats) in Singapore. But fret not, if you are single and capable, you can still have your own private sanctuary – Condominiums. The first step to getting your own space, is paying for the downpayment. This is often the first cost for home buyers. Let’s take a look at the payment schedule for a newly launched $1mil private condo at a bank interest rate of 0% (which is impossible):
Interested parties would have to pay for 5% of purchase price for exercising option (option or booking fee), which amounts to $50,000 of $1mil. After receiving sales and purchase (S&P) agreement within the next 2 weeks, legal fees are incurred ($3,000), S&P agreement gets signed, Buyer Stamp Duty (BSD) or Additional Buyers Stamp Duty (ABSD) fees are incurred ($24,600), followed by the downpayment of $150,000. At this point, the bank will disburse your home loan. Next, we have the costs for valuation fee ($350), foundation work ($100,000), reinforced concrete framework ($100,000), brick walls of unit ($50,000), ceiling of unit ($50,000), doors and window frames ($50,000), carparks, roads and project servicing ($50,000), notice of Vacant Possession and a copy of Temporary Occupation Permit (TOP) ($250,000) as well as the completion date and the Certificate of Statutory completion ($150,000). All of these sum up to $1,027,950. The above is for newly launched condo units, what about resale private condos? Again, at a 0% bank interest rate, the fees for a resale condo includes a $10,000 booking fee, $40,000 option fee, $3,000 legal fees, $24,600 for BSD/ABSD, $350 valuation fee and $950,000 for the completion of sale and purchase. The total will be $1,027,950.
Payment Timeline for Private Condos: New Launch VS Resale
Date: 24 Nov 2020 Source: SeedlyReads