What is the progressive payment scheme when buying Tembusu Grand condo?

If you are considering purchasing Tembusu Grand condo, you may have come across the term “progressive payment scheme.” This payment scheme is commonly used in the purchase of new properties such as condominiums or landed properties. In this article, we will explore what the progressive payment scheme is and how it works.

What is the Progressive Payment Scheme?

The progressive payment scheme is a payment plan used for the purchase of properties that are under construction. Under this scheme, the buyer makes payments to the developer at various stages of construction instead of paying the full purchase price upfront. The payments are typically made in stages, with each stage corresponding to a particular phase of the construction process.

How Does the Progressive Payment Scheme Work?

The progressive payment scheme typically consists of the following stages:

Stage 1: Booking Fee The first payment is the booking fee, which is typically between 5% to 10% of the property’s purchase price. This fee is payable upon signing the Option to Purchase (OTP) and is non-refundable.

Stage 2: Exercise Fee The second payment is the exercise fee, which is typically 15% of the property’s purchase price. This fee is payable upon exercising the OTP, which must be done within 14 days of signing the OTP.

Stage 3: Completion of Foundation The third payment is due when the foundation of the property is completed. This stage usually represents about 10% to 15% of the property’s purchase price.

Stage 4: Completion of Reinforced Concrete Framework The fourth payment is due when the reinforced concrete framework of the property is completed. This stage typically represents about 10% to 15% of the property’s purchase price.

Stage 5: Completion of Walls The fifth payment is due when the walls of the property are completed. This stage usually represents about 5% to 10% of the property’s purchase price.

Stage 6: Completion of Roofing and Ceiling The sixth payment is due when the roofing and ceiling of the property are completed. This stage typically represents about 5% to 10% of the property’s purchase price.

Stage 7: Completion of Electrical Wiring, Plumbing and Installation of Windows The seventh payment is due when the electrical wiring, plumbing, and windows of the property are completed. This stage usually represents about 5% to 10% of the property’s purchase price.

Stage 8: Completion of Carpentry, Doors, and Fittings The eighth payment is due when the carpentry, doors, and fittings of the property are completed. This stage typically represents about 5% to 10% of the property’s purchase price.

Stage 9: Completion of Painting, Handing Over, and Possession The final payment is due when the property is completed and ready for handover. This payment represents the remaining balance of the property’s purchase price, which is typically 15% to 20% of the total price.

Advantages and Disadvantages of the Progressive Payment Scheme

The progressive payment scheme has several advantages for buyers, including:

• Lower initial cash outlay compared to paying the full purchase price upfront
• The ability to plan finances more effectively as payments are made in stages
• Increased transparency and accountability as payments are tied to specific stages of construction

However, the scheme also has some disadvantages, including:

• Higher total cost due to the interest incurred on the bank loan taken to finance the payments
• Greater financial risk in the event of project delays or default by the developer

Conclusion

The progressive payment scheme is a common payment plan used for the purchase of Tembusu Grand. Buyers should carefully consider their financial situation and the terms of the payment plan before committing to a property purchase.