Analyse the costs and returns of buying a property under construction with progressive payment schedule.
Cash During Construction-
Stamp Duty-
Mortgage at TOP-
Construction Interest-
Value at TOP-
Paper Gain at TOP-
Gross Yield-
Total Cost at TOP-
How to Use the Uc Calculator
Key Takeaways
Progressive payment means you pay interest only on the loan portion drawn down at each construction stage — total interest during construction is lower than on a completed property.
The TOP (Temporary Occupation Permit) milestone triggers the largest single payment — typically 25% of the purchase price — plan cash flow for this lump sum.
Most buyers pay both progressive mortgage interest and existing housing costs (rent or current mortgage) during construction — budget for this dual outlay.
If TOP is delayed, developers pay liquidated damages of 0.72% per annum of the purchase price — this is modest compensation for the financial disruption of delayed planning.
Confirm your TDSR remains within 55% at TOP stage, accounting for any changes in income or new debts taken since purchase.
What It Does
Buying a new launch condo? Understand progressive payment schedules, interest costs during construction, and your true total outlay before TOP. Model the full timeline from booking fee to rental income, including the hidden cost of paying interest with zero rental income during the 2-3 year build period.
You can find this calculator in the Calculators tab on ShiokNest. It updates results instantly as you adjust inputs — no waiting, no page reloads.
Why It Matters
New launch condos are marketed with beautiful showflats and attractive early-bird pricing, but the financial reality is more complex. The construction period creates a unique cash flow pattern that is fundamentally different from resale purchases. This calculator matters because:
How It Works
Navigate to Calculators — Click the "Calculators" tab in the ShiokNest navigation bar. All 26 calculators are grouped by purpose for easy access.
Select the calculator — Choose "How to Analyse Under Construction Investments" from the calculator list. You will see default values already loaded so you can explore immediately.
️ Enter your values — Replace the defaults with your own numbers. The key fields are:
Review the results — The calculator updates instantly as you change any input. KPI cards show your down payment, construction timeline, estimated interest during construction, and post-TOP rental income.
Run what-if scenarios — This is where the real power lies. Change one variable at a time to see its impact. For example, try increasing the interest rate by 1% or extending your holding period by 5 years. Note how the results shift.
Compare and decide — Run 2-3 different scenarios and note the results. This gives you a range of outcomes to base your decision on, rather than relying on a single projection.
Examples
Meet Li Wei, buying a $1,800,000 new launch condo in Tengah with a 36-month constructio…
Results
Down Payment (25%)
$450,000
Construction Period
36 months
Est. Interest During Construction
~$70,875
Expected Rent (post-TOP)
$4,000/mo
How to read this:
The hidden cost of new launches: During the 36-month build period, Li Wei pays interest on the progressively drawn-down loan amount but earns zero rental income. This "dead money" period costs approximately $70,875 in interest alone. Many new launch buyers overlook this cost when comparing against resale properties that generate rent from Day 1. Progressive payment schedule: Typically 20% at booking, then staged payments at foundation (10%), reinforced concrete (10%), brick walls (5%), ceiling/roofing (5%), and so on until TOP. The calculator models this entire timeline and shows your actual cash outflow month by month.
Tips & Pitfalls
Expert Tips
Use realistic assumptions — Singapore condo appreciation has historically averaged 2-4% per year. Avoid overly optimistic projections. When in doubt, use 3% as a baseline.
Add 6-12 months buffer — Construction delays are common. Budget for extra months of interest payments with no rental income.
Compare against resale — A resale condo generates rent from Day 1 and has no construction risk. Use the Side-by-Side calculator to quantify the difference.
Common Pitfalls
Underestimating construction interest — Interest accrues from day one on drawn-down amounts. Over 36 months, this adds up to tens of thousands.
Developer price premium — New launches typically sell at 10-20% premium over comparable resale units. Factor this into your appreciation assumptions.
Frequently Asked Questions
Is my data saved?
No. All calculations run entirely in your browser. Nothing is stored on our servers or shared with third parties.
When do I pay the full downpayment?
The 5% booking fee is paid at OTP exercise. The remaining 20% cash/CPF (to make up the 25% downpayment) is typically due within 8 weeks of signing the Sale & Purchase Agreement — before construction begins. Only the 75% loan portion is drawn progressively as construction milestones are reached.
Can I save my results?
Log in to save scenarios to your dashboard, or use the share button to copy a URL that encodes your inputs.
What happens if I cannot service the mortgage at TOP?
Banks assess your mortgage serviceability again at TOP based on current income and obligations. Ensure your TDSR stays within 55% at that stage, particularly if you have taken on additional debts since purchase. If circumstances have changed significantly, discuss with your bank early — restructuring options are limited once the loan is disbursed.
Can I sub-let or rent out the unit during construction?
No. The unit does not legally exist until TOP is issued. You can only rent it out after TOP when you receive your keys and complete legal completion. Factor in a 1–3 month lag between TOP and first rental income when modelling your cash flow timeline.