QUOTE(GibsX @ Jul 11 2018, 09:05 PM)
I'm thinking to buy an apartment (under construction project) which is near to completion.
I understand that every undercon project requires you to pay certain amount to bank for progressive payment (that will eventually deduct your loan interest?) But my concern is, since the project is near completion, do I need to pay higher amount compare to someone who already made the purchase/sign s&p let say 2 years earlier than me?
I heard about this rumours where whoever make later purchase need to pay more than someone who made the purchase earlier?? Is this true?? Anyone know how to calculate this?
Also how long usually you need to pay the progressive payment after you already signed snp?
You pay as the bank disburses the $ to the developer.
Under the S&P there will be stages, that will indicate the % to be paid (disbursed) by the bank after reaching each stages of construction.
In summary, let say your prop is 200k
Stage (1) - 10%
Stage (2) - 15%
Stage (n) - 10%
Add up all stages will be 100%
In stage (1) you will be paying (servicing) the loan for 10% of 200k, which is 20k. You pay interest on this 20k that is disbursed out by the bank.
If you have flexi loan, then you can dump 20k into the loan account, and then technically, you will be paying 0%
Since the prop is not completed, your loan payment won't actually start, you will be servicing the interest only. Which is why, as the property near completion, you will notice that your monthly payment will start to go up and eventually be the monthly loan amount as per your loan.