Developer lures buyers with rent then buy scheme
Artist’s impression of Lloyd Sixtyfive in River Valley.
Property developer TG Development has unveiled a new scheme that will allow buyers to rent a unit at Lloyd Sixtyfive in River Valley before deciding to purchase it.
Under its Experiential Leasing Scheme, a potential buyer can sign a two-year lease and pay the rent and refundable deposit upfront to stay in a brand new unit.
Should the client decide to purchase the unit, the developer will refund the rent and the security deposit, “less any deductions to the client after receipt of 20 percent of the purchase price”. If not, only the security deposit will be refunded.
The Urban Redevelopment Authority (URA) had rejected an earlier version of the scheme, as it was “akin to giving the tenant an option of up to 20 months from the commencement of the lease to decide if he (or she) wishes to purchase the unit”.
The new scheme differs from the earlier version as the rented unit is not reserved for the tenant.
The Straits Times reported that TG Development will only release 20 one-bedroom with study and one-bedroom units under the scheme.
With average prices for one-bedroom units starting from $1.62 million, or $2,760 psf, the rent for such units works out to around $6,750 per month.
“During the tenancy, the clients will have ample time to plan for their finance,” said TG Development in a statement.
“They could enjoy the experience of their stay without having to consider the interest of their loan as there is no loan required for the low upfront cash outlay.”