Deferred Payment Plan
A deferred payment plan allows buyers to delay full payment through structured installments extending beyond property completion, offered by developers as sales incentives particularly for off-plan purchases.
| Common Structures | Payment Distribution |
| 60/40 post-handover | 60% during construction, 40% over 3 years |
| 50/50 post-handover | 50% construction, 50% over 5 years |
| 1% monthly | 10-20% down, balance in 1% monthly payments |
| Financial Implications | Consideration |
| Interest component | Usually implicit in pricing |
| Total cost | 5-10% premium vs cash price typical |
| Rental income | Can service deferred payments |
| Assignment restrictions | May limit resale during payment period |
| Risk Factors | Exposure |
| Developer obligation | Payment plan validity |
| Personal liability | Continues regardless of circumstances |
| Refinancing need | May require mortgage for payoff |
| Market timing | May require mortgage for payoff |
Related Terms
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