How much is downpayment required to buy a unit in Tembusu Grand?
Buying Tembusu Grand is a major financial decision that requires careful planning and consideration. One of the most critical factors to consider is the downpayment required to secure your purchase. In this article, we will explore how much downpayment is needed to buy a unit in Tembusu Grand.
What is a Downpayment?
A downpayment is a percentage of the property’s purchase price that a buyer must pay upfront to secure the purchase. In Singapore, the downpayment for buying a condo is typically between 5% to 20% of the property’s purchase price.
Minimum Downpayment Required for a Condo
In Singapore, the minimum downpayment required to purchase a condo depends on the buyer’s nationality and the number of properties they already own. For Singapore citizens and Permanent Residents (PRs), the minimum downpayment is 5% for the first property and 10% for the second and subsequent properties. For foreigners, the minimum downpayment is 20% for all properties.
Additional Buyer’s Stamp Duty (ABSD)
In addition to the downpayment, buyers must also pay the Additional Buyer’s Stamp Duty (ABSD) when purchasing a second or subsequent property. The ABSD is a tax imposed on buyers to reduce demand and cool the property market. The ABSD rates vary depending on the buyer’s nationality and the number of properties they already own.
For Singapore citizens buying their second property, the ABSD is 12% of the property’s purchase price. For PRs buying their second property, the ABSD is 15% of the property’s purchase price. Foreigners are subject to an ABSD of 20% for all properties.
Financing the Downpayment
Buyers can finance their downpayment through various means, including cash, CPF (Central Provident Fund), and bank loans. CPF savings can be used to finance up to 15% of the downpayment, while the remaining amount must be paid in cash or through a bank loan.
Buying a unit in Tembusu Grand requires a significant amount of money upfront in the form of a downpayment. The amount of the downpayment required depends on the buyer’s nationality, the number of properties they already own, and the property’s purchase price. Buyers should carefully consider their financial situation before committing to a property purchase and ensure that they have enough funds to cover the downpayment and other associated costs. Engaging a trusted real estate agent can also help buyers navigate the complex process of buying a condo in Singapore and ensure that they make an informed decision.