5 Things Before You Visit Boulevard 88 Showflat
If you are ready to commit yourself to the purchase of Boulevard 88 and decided to visit Boulevard 88 Show Gallery, you should read the below article that discuss some of the key factors you should weigh in order to get an accurate picture of your financial means and ability to acquire the flat.
What You Have In the CPF
The amount of money that you have in your Central Provident Fund (CPF) account or accounts determines how much you can afford to use during the purchase of the flat. People who wish to buy their first property can access all the money that they have in the ordinary account (OA) in the CPF. People who already own a property and wish to acquire another must have a minimum sum of $75,000 in their ordinary and special CPF accounts.
Review your CPF usage and get an idea about the extra funds that you need in order to afford the condominium at the site where the showflat has been constructed.
AIP for a Housing Loan
It is also important for you to know how much you will be able to borrow in order to finance the purchase of the property. Talk to your bank and get an approval-in-principle (AIP). The AIP indicates the amount that the bank is willing to advance to you. This figure is crucial in helping you to establish the cost of the property which you can afford.
You will need to give your bank several documents if you want to get the AIP. Those documents include:
- A duly filled loan application form.
- A form declaring all the loans that you currently have.
- 3 of your most recent payslips and tax returns.
- Proof of the last 12 months’ contribution to your CPF accounts.
- Identification documents (passport, for example).
The requirements may vary from time to time. Ask your bank for an updated list of the documents needed to obtain the AIP.
The Applicable ABSD Bracket
The total cost of purchasing the property may also be increased by the additional buyer stamp duty (ABSD). This stamp duty is calculated as a percentage of the cost of the property. Citizens who want to buy their first property are exempted from the ABSD. Those getting a second property pay an ABSD of 7%. Extra properties are all charged a 10% ABSD.
Permanent residents incur a 5% ABSD on their first property. Additional properties are charged a 10% ABSD. Entities and foreign nationals incur a 15% ABSD on all properties acquired regardless of whether the property is the first to be bought or not.
Consider your individual situation and identify the ABSD bracket in which you belong. Add this cost to the estimate of the cost of purchasing the Boulevard 88.
The Normal Progressive Payment Scheme
Your financial ability to buy a property is also determined by your cash flow situation. Various payments have to be made at different stages of the purchase process. This is called the Normal Progressive Payment Scheme (NPS). The scheme determines what percentage of the cost you
should remit to the developer during the various stages of the acquisition
For example, you are expected to hand over 5% of the cost of the property once you select the flat which you want to buy and the developer gives you an OTP (Option to Purchase) document. The stamp duty and ABSD, as well as other milestone payments, have to be remitted within the timelines indicated in the NPS. Get a copy of the NPS and confirm that your cash flow situation can allow you to make those needed payments in a timely manner.
The Balloting Process
Prospective buyers of Boulevard 88 By CDL are allowed to preview the showflat a week or two before the launch date. This window allows such buyers to decide whether the units are desirable and are priced right. Those buyers can then register for a special non-obligatory seat on the day of the launch. You can register for balloting by submitting various documents, such as a photocopy of your NRIC, a filled form showing your interest, and a cheque written to the developer. These documents are all returned to you in case you don’t decide to buy any unit or units on the day of the launch.
How do you score on each of the five issues in the discussion above? Do visit the showflat on the launch day once you have a clear picture of your financial status with respect to the issues discussed.