For Project Launches
Explanation to New Project Launches & VVIP
What Do We Mean By New Project Launches?
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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"
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But, what do they mean?
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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.
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Your agent should then help you on your financial calculations, knowing your concerns and what unit type you need... Be it for investments, or for your own stay or upgrade due to family size.
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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.
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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, 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.
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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.
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Things to Note:
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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 )
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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. )
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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?
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Percentage of the prices do increase and as we say this, remember these are the balance units, after the VVIP balloting.
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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.
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So as the floor level goes upwards, the price also increases upwards by a certain amount, thats for sure.
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And because of the VVIP balloting, the balance units prices may increase gradually if not immediately.
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.
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Congratulations on getting your choice unit!
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So whats next?
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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.
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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.
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Once you have collected it, then all thats left is for you to inform the bank of your choice to confirm your loan and have them prepare the Letter Of Offer ( LO ).
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Your agent will probably advise you on the law firms to be use for this purchase as well that will work together with your bank.
Then we are all done!
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Depending on each individual buyers situation, law firm will arranged the time to meet up with you, after they have received the Sales & Purchase document from the developer's law firm and give you the more detailed information and timeline from there.
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Also, they will advice you on the exercise fees and stamp duty required so do bring along your cheque book.
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( Advice is to have S&P sent to your law firm, as they do so during office hours so your law firm can received it and explain it to you when you go to their office. )
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Whats left now is to wait for the Progressive Payment to start the first stage ( once foundation works completed ), then the loan will kick in from there.
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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 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.
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1) Knowing how much we can spare for the purchase:
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We need to know each purchaser usable CPF and Cash available for the purchase.
You can check the CPF in the Ordinary Account from the CPF website.
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2) Getting a IPA done ( In Principle Approval )
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This will give you a good idea of how much mortgage you can support and what unit types you can afford to purchase.
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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.
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Based on your monthly income or combined monthly income, we will be able to show you.
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Here below are the revised Loan to Value ( LTV ) Limits on Housing Loans.
3) Timeline for purchasing a New Launch Project
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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. )
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Then after that, will be to wait for the Progressive Payment Schedule to start once foundation is completed.
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To know what buyer stamp duty or additional buyer stamp duty you will be incuring ---> Click Here
4) Progressive Payment
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This is the general timeline for the New Launch Project purchases.
All and all, completion will be around 8 weeks
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Then after that, will be to wait for the Progressive Payment Schedule to start once foundation is completed.
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So for a $1mil Property Purchase:
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5% Booking Fee - $50,000 ( Cash )
15% will be - $150,000 ( Cash / CPF )
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Another 5% will be before the start of the progressive payment schedule, 5% will be $50,000 ( Cash / CPF )
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