Condominiums in Singapore cost a pretty penny, and buying one can put a big dent in your wallet. New launch condos compared to their resale counterparts, might cost slightly more, but they also offer numerous advantages over older properties.
In this blog post, we’ll look at all the advantages of buying a new launch condo such as The Orie, as well as take you through the steps on the road to getting your new home.
Why Buy a New Launch Condo?
First, let’s take a look at the pros and cons of new launch condos compared to resale.
The newer developments now come equipped with the latest designs, smart home technologies, and modern fixtures. Plus, you get a brand, spankin’ new home!
You can choose your preferred units and developers often give early-bird prices, incentives, or stamp duty rebates. In addition, new launches are purchased at a lower price with some capital gains as the property nears completion.
However, there’s usually a waiting period of two to five years for the property to TOP, and market conditions may affect the property value.
Resale condos are immediately available, with little to no waiting time. Older condos might also offer more space and are typically larger compared to the newer ones. However, the facilities and fixtures might be older and need refurbishment, which means you’ll need renovation work before you move in.
In addition, if the condo is on a 99-year lease, the resale value might be affected when you decide to sell.
The New Launch Handover Process
Now, let’s go over the steps you’ll be taking during the purchase of your new home.
Step 1 – Financial Planning
Calculate your finances and determine your Total Debt Servicing Ratio (TDSR), the maximum portion of your income that can be used to service the property loan. As of 2024, the Monetary Authority of Singapore determined that the TDSR limit is 55%, which means no more than 55% of your monthly income before taxes can go towards servicing your loan.
Then, get an In-Principle Approval (IPA) from a bank and ensure you’re comfortable with your monthly obligatory payments.
Step 2 – Pick Your Home
Now you’ve got your finances sorted, it’s time to go home shopping. Be sure to research thoroughly and shortlist the developments you’re interested in. Then, go to the developer’s site and arrange for a show flat viewing. Be sure you look carefully over all details of the development, including information like The Orie’s Floor Plan.
Not only do you have to consider finances, location, size, and budget, but also evaluate each developer carefully and look into their past projects and track record so you have an idea of their reliability and quality.
Step 3 – Register Your Interest
Once you’ve got your heart set on a particular property, you’ll have to register your interest with the developer. Early registration often gives you priority access to updates and you might get the first pick of available units once launched.
Step 4 – Visit the Showflat
Showflats are mockups of what your new home will look like. Look for the layout, quality of finishes and fixtures, and general vibe. Bring a notebook and a measuring tape if you want to do some renovation planning or customization.
Step 5 – Pay The Booking and Option Fee
Once you’ve got your mind made up, book your new home by paying the option fee which is usually 1% to 5% of the purchase price. Once you do, you have the right to purchase the unit, in part of the process called the Option to Purchase (OTP).
Step 6 – Loan Approval
Now, ensure your mortgage is pre-approved which will give you the money you need to complete the purchase.
Step 7 – Downpayment
Once your loan is approved, you can sign the sales agreement and pay the remaining downpayment which is usually 15% of the purchase price. Now, you are legally bound to your newly purchased home. At this stage, you might want to hire a solicitor to help navigate the details of your purchase.
Step 8 – Progressive Payment
Payments are typically needed throughout each stage of the construction. Note the payment schedule which will be the downpayment followed by several installments, typically every few months after some pre-set milestones.
Stay up to date on construction updates to ensure that the construction is on track so you can finally receive your keys.
Step 9 – Temporary Occupation Permit (TOP)
Yay! Your new home is complete so it’s time to collect your keys. Now you can move in, or do some further renovations. Whatever your heart desires! That wasn’t too hard was it?