All you could know concerning the apartment fee schedule
6 min read
Probably the most unappealing a part of shopping for a apartment isn’t having to face in snaking queues in showflats. Reasonably, it’s realising that it’s important to pay for the property that often takes the joys out of the entire affair. That’s why you must know all concerning the apartment fee schedule earlier than you benefit from the home-hunting expertise. Let this text fill you in.
New launch vs resale condos: The variations
Shopping for a apartment unit usually falls in both of two classes:
- Shopping for a unit in a accomplished growth. That is often a resale, or an unsold unit straight from a developer.
- Shopping for a unit in an uncompleted growth, aka a constructing below development (BUC). That is often a brand new launch apartment unit purchased straight from the developer, however may also be a sub-sale from a purchaser.
There are a selection of things which may push you in the direction of one or the opposite. For instance, you won’t be prepared to attend three plus years on your unit to be constructed, otherwise you need to buy a unit in a growth that’s already been accomplished (and may be inspected with your individual eyes). The factor is that, whereas the apartment fee schedules for the 2 varieties aren’t vastly completely different from one another, there are variations you must know.
Rental fee schedule of uncompleted developments (new launch apartment)
Let’s take the instance of newlywed couple Eddie and Alexandra, who’re each Singapore residents with a mixed earnings of S$14,000/month, and CPF steadiness of S$60,000.
They’re concerned with buying a unit in a brand new growth that hasn’t began development but, at a value of S$1,500,000. To assist course of their transaction, they’ve engaged personal authorized counsel who’ve agreed to cost S$3,500 for all the buy, and have obtained their valuation report at S$350.
Since this is able to be their first financial institution dwelling mortgage, they’re entitled to as much as 75% of the acquisition value in accordance with the loan-to-value (LTV) restrict. Because of this in the event that they had been to take out the complete 75% financing, the mortgage quantum can be S$1,125,000.
As for the stamp responsibility, as they’re each Singaporeans and that is their first property, they’ll solely must pay the Purchaser’s Stamp Responsibility (BSD).
You should use 99.co’s Stamp Responsibility Calculator to conveniently calculate how a lot BSD you’re subjected to.
Right here’s what their apartment fee schedule would seem like, in the event that they go for the progressive fee scheme that’s accessible for brand spanking new launch condos.
| Payment payable/stage of labor | Approximate timeframe | % of buy value | Quantity payable | Cost mode |
| Exercising the choice (Choice or reserving price) | 5% | S$75,000 | Money | |
| Signal the Sale and Buy (S&P) settlement to train the OTP | Inside 3 weeks of receiving it | |||
| Purchaser’s Stamp Responsibility (BSD) | Inside 14 days of signing the S&P | 1% of first S$180,000 | S$44,600 | Money/CPF |
| 2% of subsequent S$180,000 | ||||
| 3% of the following S$640,000 | ||||
| 4% of the following S$500,000 | ||||
| Downpayment | Inside 8 weeks of exercising the choice | 15% | S$225,000 | Money/CPF |
| Authorized charges | ~S$2,500 – S$4,000 | S$3,500 | Money/CPF | |
| Valuation price | ~S$350 – S$500 | S$350 | Money/CPF | |
| Basis of labor | ~6 – 9 months from launch | 10% | S$150,000 | Money and/or financial institution mortgage |
| Bolstered concrete framework | ~6 – 9 months later | 10% | S$150,000 | |
| Brick partitions of unit | ~3 – 6 months later | 5% | S$75,000 | |
| Ceiling of unit | ~3 – 6 months later | 5% | S$75,000 | |
| Door and window frames in place, wiring, inner plastering and plumbing of unit | ~3 – 6 months later | 5% | S$75,000 | |
| Automobile park, roads and drains serving the challenge | ~3 – 6 months later | 5% | S$75,000 | |
| Discover of vacant possession | TOP date | 25% | S$375,000 | |
| Authorized completion date | Date of authorized completion/certificates of statutory completion (CSC) | 15% | S$225,000 | |
| Whole | S$1,548,450 |
Remember the fact that the reserving price of S$75,000 must be paid completely in money, and can’t be supplemented utilizing CPF or a financial institution mortgage.
What’s the month-to-month instalment for a brand new launch apartment?
To get a breakdown of how a lot the couple would pay monthly with the progressive fee scheme, we crammed up the next particulars on 99.co’s progressive fee scheme calculator. We assume the house mortgage is on a 30-year tenure and an rate of interest of 4% each year.
Right here’s how a lot the couple would pay monthly, because the apartment will get constructed.
You can too use 99.co’s progressive fee calculator to do the maths for you!
New launch condos on the market
Rental fee schedule for accomplished developments
Now let’s see how the funds work out if Eddie and Alexandra determine to purchase a accomplished growth (i.e. a resale apartment) as an alternative.
| Payment payable/stage of labor | Approximate timeframe | % of buy value | Quantity payable | Cost mode |
| Grant of choice (Reserving price) | 1% | S$15,000 | Money | |
| Train of choice (Choice price) | Inside 14 days of grant of choice | 4% | S$60,000 | Money |
| Purchaser’s Stamp Responsibility (BSD) | Inside 14 days of exercising the choice | 1% of first S$180,000 | S$44,600 | Money/CPF |
| 2% of subsequent S$180,000 | ||||
| 3% of the following S$640,000 | ||||
| 4% of the following S$500,000 | ||||
| Authorized charges | ~S$2,500 – S$4,000 | S$3,500 | Money/CPF | |
| Valuation price | ~S$350 – S$500 | S$350 | Money/CPF | |
| Authorized completion of sale and buy at lawyer’s workplace | ~ 8 – 12 weeks of train of choice | 95% (steadiness of buy value) | S$1,425,000 | Money and/or financial institution mortgage |
| Whole | S$1,548,450 |
Once more, the S$75,000 in reserving and choice charges will must be paid fully in money; CPF funds and financial institution loans can’t be used.
What’s the month-to-month instalment for a resale apartment?
Likewise, assuming the couple would take a 30-year dwelling mortgage at an rate of interest of 4% each year, right here’s how a lot they’ll must pay for the month-to-month instalments. That is calculated with 99.co’s mortgage calculator.
Resale condos on the market
One of many prices will likely be renovation prices, which can rely on how in depth the renovation will likely be.
Plus, there’s the apartment upkeep price that you just’ll must pay each three months. This relies on the apartment, however it may vary from S$250 to S$1,000 a month.
Additionally, don’t overlook concerning the property tax, which is predicated on the annual worth of a property. Basically, the annual worth of a apartment unit is greater than an HDB flat.
Pondering of promoting your home to maneuver to a brand new launch or resale apartment? Allow us to assist you with the method by connecting you with a premier property consultant.
In case you discovered this text useful, 99.co recommends Ought to Singapore undertake the Danish Mortgage Mannequin? and Full checklist of recent launch condos (with unsold models) approaching their developer ABSD deadlines in 2023/2024.
[Additional reporting by Virginia Tanggono]
Incessantly requested questions
Basically, if you happen to’re taking the complete 75% financing from the financial institution mortgage, the downpayment will likely be 25%. Out of this, 5% have to be paid in money, whereas the remaining 20% may be paid in money and/or CPF.
The progressive fee scheme lets you pay in accordance with the completely different phases of the development. For example, after the inspiration work is completed, you’ll must pay 10% of the acquisition value inside 14 days.
Sure, you should use your CPF Extraordinary Account financial savings to pay on your apartment. This consists of the downpayment, stamp responsibility and residential mortgage instalments. Relying on the regulation agency, you might be able to pay the authorized charges together with your CPF as nicely.
