All About Sg Property | For EC Project Launches

For EC Project Launches

Explanation to EC Project Launches & VVIP

Explantion

What Do We Mean By New Project Launches?

Many a times, you will see brochures and flyers going around about a new launch project.

It will always says words like "Launching Soon!" , "Register For VVIP", "Get VVIP Discounts" or "Early Bird Discounts"

But, what do they mean?

Basically, these are referring to the condominium projects that is ready for sale, and the SHOWFLAT will be ready for viewing, so you can see the model build up, the bedroom models and more information and a lot more details to have a feel of how the condominium will be like, to help you understand the project, when its done constructing.

Your agent should then help you on your financial calculations, knowing your concerns and what unit type you need.

Check out the Steps Before VVIP Balloting Here --- > Click Here

Its always good to check these info beforehand so its easier to make your decision later.

Then, if you are really interested and feel this is the right project for u, you should narrow down to what unit types and facing and requirements you prefer, submit the documents required by HDB to check your eligibility and then put down a blank cheque, in exchange for a "ticket for balloting a unit first hand"

Now, the important thing to note is, you need this "ticket" to come back on the balloting day, which we called it the VVIP balloting.

This will ensure you get a CHANCE to select your CHOICE units, at a VVIP Best price rate, before the showflat opens for public to walk in for purchases.

Things to Note:

Balloting does not guarantee you to get your choice units. ( It might take you earlier in the start of the day or late in the evening to get your number balloted, before you can reach the counter to chose your unit )
It is important at this point to have your IPA ready so you know for sure on your budget and how much more or less you can stretch for a unit. ( This is for your 2nd or 3rd or 4th choices should you not be able to get your 1st choice unit. )
U still can choose whether or not to proceed but most times, it should be a definite yes if you are going to go thru the balloting process already. ( There is no penalties at this point should you choose not to proceed. )

Price Increases After Public Launch, True or False?

Percentage of the prices do increase and as we say this, remember these are the balance units, after the VVIP balloting.

So VVIP clients would have already chosen their choice units, best or good facing, units that suits their budgets and the various unit types for themselves.

Investors here would have also taken the most affordable units and maybe the lower floor units.

So as the floor level goes upwards, the price also increases upwards by a certain amount, thats for sure.

And because of the VVIP balloting, the balance units prices may increase gradually if not immediately.

After Balloting

So Whats Next After Balloting?

Join in a queue ( if there is ), after your ballot number is called and make your way to the booking counter.

Select your unit and give them the cheque to secure it at the counter.

Congratulations on getting your choice unit!

So whats next?

Always be prepared to spend at least more then half a day for the VVIP balloting as it depends on when your ballot number is called and the amount of people balloting on that day.

So once you have selected your unit, you will be lead to a sitting area where the agent will prepare and go thru the documents with you while waiting for the Option to Purchase to be ready at the backend.

Then, backend will submit your application along with all the required documents to HDB.

This process will take about a month or so.

Once approved, you will received a Sales & Purchase Agreement from the developer.

( Suggestion to have this sent to your appointed law firm as anytime during work hours they can receive it.

You will then have within 21 days to exercise this agreement at the law firm, and they will mail it back to the developer.

And within 2 weeks, you will have to make the remaining payment of 20% + Buyer Stamp Duty

Either using HDB Housing Grants or Cash / CPF

( These will be advised by your law firm when you exercise the S&P )

Then we are all done!

Whats left now is to wait for the Payment Scheme to start the first stage ( once foundation works completed ), then the loan will kick in from there.

Lastly is to wait for the whole development to complete construction and wait for your keys collection!

Have more questions or need more explanation on the procedures?

No obligations, let us help you to understand more ---> Click Here

Steps Before

Steps Before VVIP Balloting

So before we go thru and decide to go for the VVIP, these are the steps we should have already gone thru when viewing the showflat or before.

1) Checking your Eligibility for purchase:

There are specific conditions for buying an Executive Condominium.

Different schemes will also show the different documents needed for HDB.

Purchase EC under one of these HDB Schemes:

Public Scheme
Fiance / Fiancee Scheme
Orphans Scheme or Joint Singles Scheme

Conditions:

Main applicant must be a Singapore Citizen of age 21 years and above, while the 2nd applicant must be either a Singapore Citizen or Singapore Permanent Resident.
If applying under Joint Singles Scheme, both applicants must be Singapore Citizens and above the age of 35 years old.
Applicants under the Fiance / Fiancee Scheme needs to be above the age of 18 years old and have written consent from their Parents / Legal guardians.
Combined income must not exceed the household income ceiling of $14,000.
Must not currently own any residential properties ( Locally or Overseas ) or have disposed them within the past 30 months.
Both applicants must also have only purchased up to one HDB, DBSS ( Design, Build and Sell Scheme ) or Executive Condominium in the past.

2) Getting a IPA done ( In Principle Approval )

This will give you a good idea of how much mortgage you can support and what unit types you can afford to purchase.

If you haven't got a banker to do this, no worries, your agent will be able to go thru the basic calculations for you first.

Based on your monthly income or combined monthly income, we will be able to show you.

MAS Limit: The Monetary Authority Of Singapore has limits put in place to prevent homeowners from being over-leveraged and unable to service their home loans.

The Mortgage Servicing Ratio ( MSR ) states that your monthly mortgage repayment, cannot exceed 30% of your combined monthly income and
Total Debt Servicing Ratio ( TDSR ) states that your combined monthly loan repayments ( including personal loans, car loans, education ) cannot exceed 60% of your combined monthly income.

Additional cost:

Legal Fees will cost around $2,000 and valuation fess about $200.

Example:

Your combined monthly income is $10,000

Maximum figure allowed for you to spend on home loan will be :

$10,000 x 30% = $3,000

So your monthly loan repayment amount cannot be more then $3,000

Here below are the revised Loan to Value ( LTV ) Limits on Housing Loans.

3) Timeline for purchasing a New Launch Project

This is the general timeline for the New Launch Project purchases.

All and all, completion will be around 8 weeks

( From the 5% booking fee payment and the OTP date, till the 15% payment, after the S&P exercise. )

Then after that, will be to wait for the Progressive Payment Schedule to start once foundation is completed.

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Within a month or so, after getting approval from HDB, then the S&P will be sent out

To know what buyer stamp duty or additional buyer stamp duty you will be incuring ---> Click Here

4) Payment Schemes

This is the general timeline for the New Launch Project purchases.

All and all, completion will be around 8 weeks

Then after that, will be to wait for the Progressive Payment Schedule to start once foundation is completed.

So for a $1mil Property Purchase:

5% Booking Fee - $50,000 ( Cash )

15% will be - $150,000 ( Cash / CPF )

Another 5% will be before the start of the progressive payment schedule, 5% will be $50,000 ( Cash / CPF )

Progressive

Normal / Progressive Payment Schedule

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Have more questions or need more explanation on the procedures?

No obligations, let us help you to understand more ---> Click Here