I remembered last year, some joker in the papers actually wrote an article to request for the deferred payment to be reinstated. I believe that was what triggered me to write this post here. Thank goodness the government got more sense than that.
Recently, the deferred payment has come back to bite. Several buyers are unable to make the payment. Most of them bought the units in bulk, costing millions of dollars. I think there are a few here and there that bought 2-4 units.
This cause problems for both the buyers and developers. Buyers will lose their deposits, and I believe there are some implications if it's a sub-sale. For the developers, they now have to re-sell those units in this kind of economic climate. That doesn't bold well for them.
In fact, the property market has been recently stirring. Some people think that just because the developers are going to flood the market with those units, the prices will be driven down. Well, it's highly unlikely that will happen. Don't forget. All the small players are already out of the market. I believe last year, some new entrants have already been burnt and they had to forfeit their en-bloc deposit. The ones left are the big guys. They have staying power.
The developers still have the choice of renting out the units until the property market improves. This would be their most likely move if they are unable to recover their costs.
All these problems all arising because of the deferred payment scheme.
Rule of thumb: If you can't afford it, don't even think about it.
Save everyone the trouble.
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