Deferred Payment Scheme Withdrawn

THE Government has withdrawn deferred payment schemes for all property purchases with immediate effect. The Urban Redevelopment Authority (URA) said in a statement that this is ‘in view of the strong economic and property market conditions’.

Deferred payment schemes for all property purchases have been withdrawn with immediate effect. For those who are considering buying the property will be caught in a bind if they wish to have deferred payment. Usually, deferred payments cost at least 2% more than progressive payments. The good thing is it allows people time to save up to pay for the property only when it is ready, instead of paying every time part of the construction is completed.

Since every cent counts, I did not take up the deferred payment scheme when I bought my property. A large group of people who take up deferred payment are those who buy it to take part in sub sale, meaning they flip the property before it is completed. When I was househunting, many houseowners already put their units up for sale even before TOP. It was really tough making a decision then, and there is this tinge of regret that I did not buy up the property then. The prices have since increased by $300000 for a 3-bedroom unit in a suburban area.

Sometimes, such owners will try to let their units go at a lower price because they do not want to pay for their houses once TOP is obtained. With the halt of this deferred payment scheme, which first started to rejuvenate the ailing property market, less people will speculate on houses. My dream of owning my second condo in 5 years now seems a little further. On the bright side, prices will not keep rising and the burst of the property bubble will be delayed.

Sarah Tan - SingaporeProfit.com