The Singapore government announced the immediate withdrawal of the Deferred Payment Scheme (DPS) for property purchases with effect from 26 October 2007. In October 1997, the government allowed developers to offer to purchasers of uncompleted private residential and commercial properties the option to defer payments, after the initial 20% downpayment. In November 2001, the deferment was increased to half of the initial 20% downpayment.
What this means that we need when we purchase an uncompleted project we need to secure a bank loan and pay to the developer and wait till the property is ready. This greatly reduce the investment potential fro many investor who are interested in rental incomes. For time you pay up till the time the property are ready, you be having negative cashflow.
