To begin this article, the following is a simple guide for those who are unfamiliar with certain terms used:

Temporary Occupation Permit (TOP)
Once granted by the Commissioner of Building Control, a building can be occupied by the owner or tenants.

Certificate of Statutory Completion (CSC)
A legal record that the building works have been completed and all requirements have been complied with.

Option To Purchase (OTP)
A bought, limited-time pass to purchase a property, granted by the seller to a potential buyer.

Additional Buyer Stamp Duty (ABSD)
A tax on property developers should they fail to sell all their units from a residential site within 5 years.

Qualifying Certificate (QC)
Similar to ABSD but imposed on foreign property developers with slightly varying rules.

Now, let’s see what a deferred payment scheme is all about.

What is a Deferred Payment Scheme (DPS)?

Compared to the Normal Payment Scheme (NPS), a Deferred Payment Scheme (DPS) is an alternate method/process to purchasing property. While there may be a price difference (5 to 10%), the scheme gives buyers more time to accumulate funds, without having to owe interest in the near future.
To further answer the question, let’s ask another. Why are property developers offering this scheme?
Ideally, for the property developers, all their buyers would purchase their property through the NPS. Not all new launch condos on the market will offer a DPS. This is because the concept was born out of property developers wanting to circumvent having to pay ABSD and QC. From late 2011, property developers have to develop all residential site that they buy and then ensure that the units are 100% sold within 5 years. Failing that, developers have to pay ABSD of 10% on the purchase price of the site. For sites bought from 12 Jan 2013, they will have to incur higher ABSD of 15%.

The calculated loss in profit of having to pay ABSD and QC is heavier than granting buyers this alternative.

How does Deferred Payment Scheme (DPS) work?

As a buyer, life is simple. Make a downpayment of 10% – 30% for the unit you desire — exercising the Option to Purchase (OTP), and then it’s yours. Just like that. What about the rest of the amount? For the next 1 to 3 years depending on the scheme, you won’t even have to pay a cent. The payment for the rest of the sum resume after the agreed duration and is what makes this payment scheme flexible.

Once the initial downpayment has been made, you can actually start renting the unit out — or, move in yourself. So, on top of not having to to take on a mortgage, you have the benefit of immediate ownership.

When is a Deferred Payment Scheme (DPS) applicable?

A developer may only offer a deferred payment scheme once their project has received a Certificate of Statutory Completion (CSC) along with a Temporary Occupation Permit (TOP).
They are also more likely to offer a deferred payment scheme when sales of a property is not going as well as forecast; again, to avoid the possibility of having to pay ABSD/QC.

The ball is in your court.

“Wait”, you say. “There is no waiting”, we reply. Deferred Payment Schemes are developers cutting losses with time chasing at their heels and in the process,  you gain.

The route of a deferred payment scheme is highly beneficial more often than not, as it requires less cash upfront.  And provides the option to rent before a full purchase. Without having to take a loan. Which means 0% interest and zero risk.

We’ve included a list of 9 new launch condos currently offering deferred payment scheme. Take a gander, and if you see something that you fancy, let us know.

9 ritzy new properties with DPS

#1 8 St Thomas

District:
9

DPS Availability by Bedroom Type:
1 – 4 Bedroom

Description:
Located a few minutes walk from Somerset and Orchard MRT, 8 St Thomas is extremely close to Orchard Road — the most popular retail and entertainment area in Singapore. Additionally, it’s only a short drive to Marina Bay Financial District, Shenton Way, Raffles Place and the Central Business District.

#2 The Line at Tanjong Rhu

District:
15

DPS Availability by Bedroom Type:
3 Bedroom & Penthouse

Description:
Next to the upcoming Katong Park MRT on the Thomson-East Coast Line, it is also close to Mountbatten MRT (CC7) and Stadium MRT (CC6). Well-connected to frequently travelled places such as Marina Bay, Singapore Sports Hub, Marine Parade and Changi Airport, The Line at Tanjong Rhu is minutes away from The Central Business District by car.

#3 3 Orchard By The Park

District:
10

DPS Availability by Bedroom Type:
2 & 4 Bedroom

Description:
Located next to the Orchard Road main shopping belt, it is within walking distance to Orchard MRT station, Ion Orchard Mall, Takashimaya, Wheelock. It is only minutes walk to the upcoming Orchard Boulevard MRT station. Walking distance to Gleneagles Hospital, Mount Elizebeth Hospital and Paragon Medical Centre.

#4 The Crest

District:
3

DPS Availability by Bedroom Type:
2 & 4 Bedroom

Description:
Overlooking the landed property in Tanglin area along Prince Charles Crescent. Being near to Bukit Merah MRT Station, this property boasts superb public transport convenience, as travelling to Raffles Place, Shenton Way is only 4 stops away.

#5 26 Newton

District:
11

DPS Availability by Bedroom Type:
2 Bedroom & Penthouse

Description:
Accessibility is in yours hands with Newton and Novena MRT Stations within walking distance. Novena Square and Newton Food Centre are also within walking distance, meaning that gastronomical delights are just a stone throw away. Prominent locations like Orchard Road, the Central Business District And Integrated Resorts are a short drive away.

#6 Marina Collection

District:
4

DPS Availability by Bedroom Type:
4 Bedroom

Description:
Marina Collection located in Sentosa is served by shuttle service to the nearest MRT station, Harbourfront. Mega shopping and entertainment mall,VivoCity is located above Harbourfront MRT. Driving to the city is a just a 10 mins drive to get to Shenton Way and Raffles Place, Singapore financial district.

#7 Lloyd 65

District:
9

DPS Availability by Bedroom Type:
1 – 3 Bedroom

Description:
Situated at Lloyd Rd, it is right in the heart of Orchard road and is a 5 minute walk or less from Somerset MRT. Easy access to food, entertainment and transportation. This property is a smart, high end residential development offering residents high ceiling units featuring large balconies and an array of facilities.

#8 Mon Jervois

District:
10

DPS Availability by Bedroom Type:
Penthouse

Description:
Advantageously situated on Jervois Road, Mon Jervois takes a bow with convenience right at the doorstep. Shopping, dining, and entertainment destinations are easily abundant with Orchard Road only a stone’s throw away. Within a few minutes’ walk, residents have the Redhill market for amenities, Robertson Quay for cafes and bars, or River Valley for dining.

#9 Wallich Residence

District:
2

DPS Availability by Bedroom Type:
1 – 4 Bedroom and Penthouse

Description:
Wallich Residence is located  in  Tanjong Pagar, the Singapore financial district. With its prime location in the Central Business District and being directly above a MRT station, the tallest condo in Singapore with a panoramic city and sea view is the perfect investment.