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Property Purchasing: Common Types of Payment Scheme and Benefits

Published on July 25, 2023

Thinking about buying a property unit? There’s this super important thing you gotta keep in mind: the payment plan. In this article, we’re gonna dive into the different types of payment plans you can find in the real estate realm and all the cool advantages they bring to buyers like you. Sounds good? Let’s do this!


Finished Property: Down Payment with Immediate Balance Payment

When it comes to the payment arrangement for completed properties, typically, the preferred method is to require payment upfront, and the entire transaction is usually completed within a month. It is uncommon for the owner to agree to a payment scheme involving a deposit for the first year and the remaining balance paid in the following year.


Off-plan Property: Down Payment with Installments

In real estate projects that are under construction, this is one of the most common payments applied. This method allows buyers to pay a significant portion of the property’s total price as a down payment at the time of purchase and then settle the remaining amount in installments over a predetermined period. This type of plan allows buyers to secure the property while easing the financial burden by spreading out payments over time.


  • Installments by Month

One popular payment scheme for off-plan properties is to make down payments with subsequent installments by month. In this arrangement, buyers are required to provide an initial down payment, which is followed by a series of monthly payments until the property is fully paid off. This method allows purchasers to spread out the cost of the property over a specified period, making it more manageable and accommodating to their financial situation. 


  • Installments by Site Progress

Another payment option for off-plan properties is to make installments based on the progress of construction. In this arrangement, buyers make payments at different stages of the project’s development rather than on a monthly basis. Typically, these payments are divided into several milestones, such as the completion of the foundation, structural work, and key project milestones.


Off-plan Property: Which Installment Type is Suasa Suggesting?

When considering the best installment option for both parties involved in off-plan property transactions, we would definitely recommend the installments by site progress as this method stands out as the superior choice for this payment arrangement benefits both buyers and developers alike. Paying based on the progress of the construction ensures that your payments are directly tied to tangible milestones, instilling a sense of transparency and accountability. They can track the development of the property and have confidence that their installments align with the actual work completed which will minimize the risk of financial imbalances between payments and project progress and external circumstances such as the novel coronavirus (COVID-19) outbreak, the global pandemic we had last few years.


Now that you’ve got the lowdown on the different payment schemes and perks. Ready to take the plunge? Let’s consult with us!

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