In Singapore, construction is going on in many new condominium projects. The new condo payment schedule will come into effect from July 1st, 2018.
The PPS applies to properties still under construction, also known as Buildings Under Construction (BUC). It refers to paying by instalments, which are typically five to ten per cent.
It’s a slightly different way of doing things than paying for the whole condo unit at one go. To earn interest on the payment you have made on your condo unit, you have to pay a certain percentage of it every month. The payments are not consecutive and they depend on how much progress your condo unit has made.
For example, if your condo unit is 90% complete when you make the first payment, then that first payment will be a 12% interest rate (or 6% after 1 year). If it is 90% complete when you make the second payment, then that second payment will be at a 3%. If it is 50% complete when you make the third payment (or any later payments), then that third or any later payments will be at 2%, while so-called “gap payments” (paying as late as possible) will be paid at 0%.
If your condo unit was already 80% complete when you make your first payment (i.e., if it has already reached 80% completion), then that first payment would be just 4%. If it was already 70% completion when you make your second one (i.e., if it has already reached 70% completion), then that second one would be 5%, etc., up until the last one where for example if the condo unit had reached 75% completion at time of final repayment but was already less than 75% completion when you make your last repayment, then that last repayment would be just 2%.
What is Progressive Payment Scheme (PPS)?
It’s a good thing that the PPS does not apply to new condos that are under construction, as the PPS can be quite confusing for buyers. Even though at the end of this article, I will state that it applies to all new condos under development.
However, it is important to note that a new condo built after 31 March 2016 (the date of PPS) will not be subject to the PPS. That is because construction is still ongoing and would need to be completed before 31 March 2017.
Here’s a quick overview on what exactly the PPS is:
The payment schedule – You pay by instalments. The payment period – It varies depending on your property size and whether you’re paying by instalments or lump sums. The amount due – It varies depending on your property size and whether you’re paying by instalments or lump sums.
The difference between instalment payments and lump sum payments – You may also get different amounts in each instalment payment depending on your property size and whether you’re paying by instalments or lump sums. The difference between monthly payments and quarterly payments – You may also get different amounts in each monthly payment depending on your property size and whether you’re paying by monthly payments or quarterly payments. The meaning of “2018” – Since 31 March 2018, homes built before 31 March 2017 are no longer subject to the PP (Payment Per Square Foot). So if you have an apartment built before last year, it means you don’t have to pay any PPF (Paying per Square Foot). If you have a home built since last year, then it is subject to the PPF (Payment per Square Foot) so we need to make sure we are using our building code correctly here!
For those who don’t know, PPF stands for Paying per Square Foot but let me clarify once again:
PPF stands for Payment Per Floor + Paying per Square Foot but here I will use one word instead of two words like “PPF” to mean both Payment Per Floor + Paying per Square Foot . So basically what I mean when I say “PPF” is “Payment Per Floor + Paying Per Square Foot”.
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Benefits of PPS
This is a quick and dirty guide to the new Payment Plan Scheme (PPS) that applies to all Buildings Under Construction (BUC) projects under construction in Singapore. The PPS replaces the old Pay-as-you-go (PAYG) system and you can read more about it here.
How to Beat the PPS
In Singapore, the PPS (Payment Before Sale) is a popular payment model for new condo units. It allows buyers to pay for their condos up front, and then pay instalments as the construction progresses to ensure that they pay only what they can afford.
The PPS is generally applied when a building is under construction and not yet completed; it is also sometimes used for smaller residential developments. The PPS is most commonly applied to two- and three-storey residential buildings.
PPSs are usually paid by instalments until all of the units in the unit are sold; however, some buyers will prefer to pay a single lump sum at the time of purchase rather than paying in installments.
Here’s what you need to know about paying by instalments:
How much do I have to put down? If you have already put down all of your deposit, you do not have to put any more money into your condo unit at this point in time. You may be able to add additional money when you sign the contract with your developer or agent; but if you can’t afford any more, there’s no point paying now. If you are in a situation where there is no extra money left after paying down your deposit and other fees, we advise that you move forward with your purchase plan only once all your payments have been made and deposited into your account. It’s best if you can move forward without having any more financial commitments in place at this stage of development because any additional money from your deposit will certainly not be enough for the amount of work that needs to be done on a structure such as this one. However, if you feel that there is still room for improvement on some level or another, we recommend that you make payment plans with us so that we can give you an effective estimate on how much extra work needs to be done post-sale – if not before – as well as when it will take place once it has been completed and sold out. And keep investing so that whatever money comes in after sale will go further away from where it would have come from!
Balance between performance & design When planning out how much work needs to be done on an apartment (or other structure), try balancing between design & performance as closely as possible (this is especially important if a third party contractor has been hired): – Get creative about how big or small a project should look/feel versus how large or small
Conclusion: New Condo Payment Schedule
There is a new condo payment schedule in Singapore, according to the Land Registry
It was introduced by the state government in 2012 and applies to properties under construction.
It allows owners to pay in instalments of 5% or 10% of the total purchase price. PPS payments are usually made over 6-9 months, depending on the size of property. The PPS payment schedule will last until all construction has been completed.
