Property - buying a unit off-plan ? How negotiable is it ?

[AugustinParis]

Hey all

Hubby and I are actively looking for a property to buy, and although we didn't want initially to consider off-plan developments, we just came across a nice one, and would really appreciate any advice and testimonies about this.

First, the plans provided by the developers in the marketing brochure are "not to scale"and of course not providing detailed data about room measurements and areas. We requested them, but it seems to take very long to obtain them. We are quite puzzled about the fact that many buyers would not even know the exact surface of their future living room or bedroom ! Will we ever have a detailed floor plan with exact areas of each room ?

Second, the development we are thinking about was launched 18 months ago, so we are in the last stage of selling. Two types of units raise our interest, but the most interesting and expensive one is 300 K over our maximum budget. Do you think we can negotiate with the developer to fit this unit within our budget ? or is the advertised price unnegotiable ?

Thirds : TOP date : they say mid 2011... how erliable is this ? what delay can we expect ?

thanks for your insight !

flo

[therat]

1. Developers will not able to provide the detail floor plan as the project is not yet build complete.
The floor area is the only thing they can provide and there is a tolerance of x% (can't remember the number).
some buyer depend on the show flat.

2. Don't think they will neg the price with you. If the project is selling well. Why should they deduce the price.

3. TOP date is an estimation. Normally, the completion date will be early than the TOP date.

[AugustinParis]

thanks therat

the showroom has vanished to make way for the construction, we coult only see pictures of it.
As it is the last stage of selling I was still hopeful they would cut the price to sell the last units... you don't think it is possible ?

[therat]

thanks therat

the showroom has vanished to make way for the construction, we coult only see pictures of it.
As it is the last stage of selling I was still hopeful they would cut the price to sell the last units... you don't think it is possible ?

U can try but don't put too much hope on it.

Unless the unit facing not good, number not nice (like 13 which some western will avoid it, 4 which some chinese will avoid it).

By the way, is the project selling well?

Before purchase, it will be better to check what is your bank loan limit.

[AugustinParis]

The unit is not the best facing to a certain extent (city, south oriented and on a not so busy junction) but as it is a penthouse unit that is not such a problem I guess. The developper rep was a bit contradictory , saying that all lower floors had been sold, when I would have expected high floors to sell faster.

Our max budget is based on our preapproved bank loan, but we are unsure if banks value off plan units to the developpers price or lower, this is being checked at the moment.

We can still try indeed...

[AugustinParis]

Our bank values the unit 15% less than the asking price... if the developer doesn't want to negotiate, we don't buy. Simple as that.

[teck21]

First, the plans provided by the developers in the marketing brochure are "not to scale"and of course not providing detailed data about room measurements and areas. We requested them, but it seems to take very long to obtain them. We are quite puzzled about the fact that many buyers would not even know the exact surface of their future living room or bedroom ! Will we ever have a detailed floor plan with exact areas of each room ?

You wouldn't be the first person to have requested such info and not gotten it. The data is in the hands of the architect, and is generally not passed on to, or made available even on request by the people doing the selling. You can find out who the architect it from the sales agents, and contact them.

Second, the development we are thinking about was launched 18 months ago, so we are in the last stage of selling. Two types of units raise our interest, but the most interesting and expensive one is 300 K over our maximum budget. Do you think we can negotiate with the developer to fit this unit within our budget ? or is the advertised price unnegotiable ?

As everyone has said, probably not, especially if it was a popular development and the developer is a big name player.

Thirds : TOP date : they say mid 2011... how reliable is this ? what delay can we expect?

Almost certainly no delays, probably keys will be available for collection 6 months or more before the TOP date. Part of the Singaporean experience of under promising by a long mile so it looks like they have massively overdelivered. And to keep their backsides covered.

[ksl]

AugustinParis wrote:
Thirds : TOP date : they say mid 2011... how reliable is this ? what delay can we expect?

There is always considerable risk purchasing property this way! For one the property developer could go bust or run out of finance, I have seen properties empty for longer than 10 years, because funds had dried up.

One should always negociate, simply because there is normally room for it, high profits being made from those that have not negociated! They will make sure they break even asap by having an inflated market price, once the units are sold off, they can then calculate floor space, if most units are sold, guaranteed you can negociate a reasonable discount based on the risk factors and they are high, to deliver on time! Becuase economies can flounder any time for various reasons.

One thing for sure, if you do not negociate, you never get anything! Though it's having solid facts and experience, to negociate with. They are more interested in getting cash asap to get the project rolling, it needs to be completed without delays so you can ask them to fit your budget! Though it's very very risky if you have no guarantee of price per foot! Rather you than me!

We actually purchased a commercial factory unit, though they wouldn't budge on price, we was able to negociate 150k of renovation in our favour, before moving in.

[AugustinParis]

erratum, the bank valued it just under the asking price : we had forgotten to mention that we would buy the unit directly from the developer, and that makes a difference to them.

Did put forward our offer, that was 12 % under the asking price, and it didn't work. But the agent did not ruled out completely that the developper would accept a price at bank valuation (so slightly under asking price).

Considering other choices we might have, this is not worth going further, but the agent told me she would keep in touch if things changed (which I doubt really).

I did actually get the areas of the main rooms (beds, living/dining and balconies).

Thanks a lot for your insight !

[ksl]

erratum, the bank valued it just under the asking price : we had forgotten to mention that we would buy the unit directly from the developer, and that makes a difference to them.

Did put forward our offer, that was 12 % under the asking price, and it didn't work. But the agent did not ruled out completely that the developper would accept a price at bank valuation (so slightly under asking price).

Considering other choices we might have, this is not worth going further, but the agent told me she would keep in touch if things changed (which I doubt really).

I did actually get the areas of the main rooms (beds, living/dining and balconies).

Thanks a lot for your insight !

If you are happy with the size of the rooms, and you love the place, I would play on the banks evaluation whne the IR takes off and the casino you can bet that all property is going to rise. HDB are hitting record prices in anti social areas...what does that tell you. If i can invest in the HDB shit house in China Town I would, because its got infrastructure, its not difficult to imagine that these HDB units on the estates where poor people have lived since it was built. will sell up. I mean a 2 roomed apartment just hit a record sale of 245k in 2 years, that was 100k profit. So if you are looking at investment you should study the market and have the creativity to renovate within the HDB regulations. It's not likely that you would have the same difficulties of anti social behaviour in your home country, when they use the cane here! Geylang would be fine by me too! simply becuase there is control here