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Deferred Payment Schemes – What Property Investors Need to Know

Updated: Oct 22, 2021

First thing’s first: what is a deferred payment scheme anyway? Well, if you have ever paid for something using a credit card to top-up your upfront cash payment, then you would have a rough idea.

When you buy property under a deferred payment scheme, you pay only the down payment for the property (about 20% of the purchase price) upfront, along with some stamp duties. The rest of the cost is, as the scheme’s name suggests, deferred. So even though you’ve only paid the down payment, you’d still own the property and are free to do with it as you wish – but in a year or two, the rest of the bill will arrive and you’ll begin to gradually increase your payments for the rest of the home’s purchase price.

One thing to note, though, is that in deferred payment schemes, the purchase prices are usually hiked up a little because of the extended payment timeline. So before committing to a deferred payment scheme, it is usually a good idea to compare the property’s usual purchase price to the one under the deferred payment scheme

How do property investors benefit from deferred payment schemes?

Depending on the specific type of deferred payment scheme offered, these schemes can offer property investors many different benefits! The first benefit of all deferred payment schemes is obvious – property investors can begin to own a property at only a fraction of the actual purchase price! Of course, the rest of the bill will still arrive in a few months or years, but in the meantime, buyers can rent out their investment to start earning more income early!

Deferred payment schemes also help property investors stall for time, in a way, especially if they are expecting favourable changes in the foreseeable future. For example, a buyer could have heard that banks will be able to give bigger housing loans soon. In this case, investing in a project with a longer deferred payment scheme could help an investor lock down a promising property project, yet benefit from new changes that happen before payments start. Meanwhile, for developers, the appeal is simple – speed up the sale of the property. After all, buyers might naturally be more willing to buy if the deadline for payment doesn’t seem so close at hand.

What properties offer a deferred payment scheme?

8 St Thomas

8 St Thomas

Credit: Bukit Sembawang Estates

Location: 8 St Thomas Walk, Singapore 238146

Type of property: freehold condominium

The condo is located in a coveted area, a short 10-minute walk away from Somerset MRT station. There is a huge variety of malls nearby, including Great World City, 313@Somerset, Valley Point, Centrepoint, and Orchard Central.

The “Reserve and stay” scheme at 8 St Thomas requires a 30% down payment upfront, and the remaining amount must be paid by 29 Oct 2021.

St Regis Residences

St Regis Residences

Credit: City Developments Limited (CDL)

Location: 33 Tanglin Rd, Singapore 247913

Type of property: 999-year leasehold condominium

St Regis Residences is located 10 minutes away from Orchard MRT station, right in the middle of Singapore’s prime shopping district. Major malls nearby include Tanglin Mall, Palais Renaissance, Paragon, and The Forum.

The deferred payment scheme at St Regis Residences requires the full purchase price to be paid one year from the OTP date.

Reflections @ Keppel Bay

Reflections at Keppel Bay

Credit: Keppel Land

Location: Keppel Bay View, Singapore 098417

Type of property: 99-year leasehold condominium

With a beautiful bay view and a location right next to Singapore’s bustling central business district (CBD), Reflections @ Keppel bay has become one of the most luxurious condos in Singapore. There are many natural spaces nearby, like the Labrador Nature reserve and Mount Faber Park. It is also a 15-minute walk from Harbourfront MRT and Vivocity. This also gives easy access to Sentosa itself, with exciting attractions like Universal Studios Singapore, the Skyline Luge, Fort Siloso Beach, iFly Singapore, and more!

The deferred payment scheme for Reflections @ Keppel Bay requires the full purchase price to be paid two years (24 months) from the OTP date.

Marina One Residences

Marina One

Credit: M+S Pte Ltd

Location: 23 Marina Way, Singapore 018979

Type of property: 99-year leasehold condominium

Marina One Residences is located just 5 minutes away from both Downtown MRT station and Marina Bay MRT station. In addition to being near to Marina Bay Link Mall and Telok Ayer Market to provide the necessities, there are also many cultural centres nearby for a patron of the arts! Singapore Chinese Cultural Centre, Sands Expo and Convention Centre, Singapore Conference Hall, the Olympic Walk, and the Red Dot Design Museum are all within a 15-minute walk from here.

The deferred payment scheme for Marina One Residences requires the full purchase price to be paid one year (12 months) from the exercise date.

The Lumos

The Lumos

Credit: Koh Brothers Development Pte Ltd

Location: 9 Leonie Hill, Singapore 239220

Type of property: freehold condominium

Like 8 St Thomas and St Regis Residences, the Lumos is located in the heart of Singapore’s shopping district in Orchard. Being right between Somerset and Orchard MRT stations, the Lumos offers easy access to Wisma Atria, *SCAPE, Paragon, Lucky Plaza, and more!

The deferred payment scheme for the Lumos requires the full purchase price to be paid two years (24 months) from the OTP date.

Wallich Residences

Wallich Residences

Credit: Guocoland

Location: 3 Wallich St, Singapore 078882

Type of property: 99-year leasehold condominium

Wallich Residences can be found right next to Tanjong Pagar MRT. Located at the border between Singapore’s shopping district and cultural centres, Wallich Residences can give its residents easy access to a wide range of activities and interests.

The deferred payment scheme for the Wallich Residences requires the full purchase price to be paid 1 or 2 years from the exercise date. The overall purchase price will have a 10% discount from normal payment schemes (which offers a 15% discount). Upfront, the option fee will be at 5% of the purchase price, followed by 15% at the exercise.

Disclaimer: PropertyHunter is not responsible for inaccuracies. Information is correct as of 9 November 2020.

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