Building Under Construction (BUC) means any building construction that is not finished yet but constructors and labour still working on it. A person should never go to the under-construction site because accidents can happen. The buc loan singapore refers to private properties. Whether a new project that opened for booking or an old project, they are still Bucs if they have not received (TOP) Temporary Occupation Permit.
What is a Temporary Occupation Permit?
It is a legal document that allows the homeowners to acquire the building temporarily when all the conditions are met on time. In short, it is required to occupy the building.
Why should a person buy a buc loan?
- Home loan: When buying an under-construction building, the home loan tends to be different. The loan repayment will rise as soon as the installation is completed. A person should not pay 1% to secure the OTP.
- Better discount: Discounts are available for buying the under-construction building or home. For early buyers, a lower price would be provided. Developers may not charge stamp fees and other more fees. A person must make sure that they are getting a good deal.
- Buying blind: Sometimes, the owner shows the flat to the person with all the showpieces and other furniture. But a person must know that each unit is different from the other; a person cannot determine it quickly. A person should always buy the building before completion to estimate it reasonably.
- Renters: It is more appealing to the renters; they take a loan to rent the building and earn money. They can modify it on their own. It takes three years to complete.
- The constructors may leave the project alone if there is no surge in the sales of a building. It will be considered a waste of time when nobody is interested in buying it.
- Nobody knows how nice it would come after the completion. It is hard to determine the look of the showroom before the completion.
- The rental income can be less because the building will have no past value as it is still under construction.
The buc loan singapore payments must be made at different stages. But loans follow the payment schedule that must be followed by the person on time. Otherwise, some interest or penalty will impose on them. They follow the disbursement schedule for the convenience of the people.