Also known as BUC, this refers to property that is normally sold off the plans while the physical building is still under construction. For such properties, the Temporary Occupation Permit (TOP) and/or Certificate of Statutory Completion (CSC) have not yet been issued.
For BUC properties, financial institutions today offer financing tagged to the developer’s Progressive Payment Scheme. Progressive Payment Scheme is based on the developer’s predetermined schedule of payment (payments are normally called for in percentages). This schedule is set out based on the different stages of development; as such payments made for the purchase would be spread out through out the course of the development process. Once the developer has completed a certain stage, the developer would call for the required payment. The respective financial institutions would then disburse the loan progressively according to the schedule. The borrower’s monthly repayment would increase gradually based on the loan disburse.
If you had purchased a BUC property, the progressive payment schedule is based on the following work schedule:
| Building Schedule | Payment Quantum (usually a % of the agreed purchase price) |
|
| 1 | Booking Fee | 5% |
| 2 | Stamp Duties & property Tax | 15% |
| 3 | Foundation | 10% |
| 4 | Reinforced Concrete | 10% |
| 5 | Brick Walls | 5% |
| 6 | Ceiling / Roofing | 5% |
| 7 | Electric Wiring / Plumbing | 5% |
| 8 | Car Park / Roads / Drain | 5% |
| *9 | Temporary Occupation Permit (TOP) | 25% |
| *10 | Certificate of Statutory Completion (CSC) | 15% |
*9 Payable 14 days after notice of vacant possession and the Temporary Occupation Permit of Certificate of Statutory Completion n respect of the unit (or a certified copy thereof)
A certificate by the qualified person engaged by the vendor that the building and all roads and drainage and sewerage works serving the Housing project have been completed and that the water and electricity supplies, and gas supplies (if any) have been connected to the unit.*10 On Completion date. Of which 2% is payable to the vendor (i.e. the developer) and 13% is payable to the Singapore Academy of law as stakeholder. Whether you can afford the condominium or not, buying a condominium under construction can be a good way to gradually put up the cash for buying a property.
Whether you have purchased your property for personal lodging, investment purpose, or rental income, your key concern should be to have the power to own a property with the least cash outlay possible at any given time. Having made this decision, your chief consideration should be to sniff out a golden opportunity and capitalise on it by securing a housing loan first. It is important that you secure an advantageous mortgage package while the banks are dishing out all the goodies. Low rates mean more savings, which translates to clearing your housing loan in lesser years.
Your property may have enjoyed an appreciation in value and while the value can still be supported, it is prudent to lock in a housing loan so that you do not have to fork out any more cash than you had originally anticipated. It would be wise to consider securing a housing loan for your property. Lock in your housing loan with the best package in town and have a peace of mind knowing that your investment is secure!
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