Singapore Real Estate
Located off the coast of Malaysia, the Republic of Singapore is one of the busiest commercial centers in the Malay and Asian region. Still, thanks to an extensive Rapid Mass Transit (MRT) system that covers most of this island country, it is relatively easy to move from one region of the country to another. The four official languages of Singapore are Malay, Mandarin, Tamil, and English. In terms of investment opportunities in Singapore, the real estate sector is quite lucrative. Some of the benefits of investing in the Singapore real estate market include:
Investor-friendly environment
According to the 2013 Index of Economic Freedom, Singapore has the second freest economy in the world. The Corruption Perceptions Index ranks this Asian nation as one of the least corrupt countries in the world. In addition, it is the fourteenth exporter and the fifteenth importer in the world. These statistics show that Singapore is an investor-friendly nation. Furthermore, the country has a robust government and a mature political system, and this translates into low political risk.
Financing available for foreigners
Foreign investors can easily access financing to buy properties. Financial institutions can offer up to 80% mortgage financing to foreign investors. However, it is important to note that the terms and conditions of such loans generally vary from one lender to another. The repayment periods for these loans range from 25 to 35 years. Also, the interest rates in Singapore are quite low and foreign investors do not have to worry about capital gains tax.
Attractive rental yields and minimal transaction costs
Singapore has attractive rental returns. Figures released by singaporepropertycycle.com show that from 2008 to 2013, rental returns ranged from 4.08 to 7.38. However, the return on your investment will depend on several factors, including the location of your new launch property. Additionally, a real estate investor must factor in costs such as maintenance fees, attorney fees, agent fees, stamp fee, and taxes where applicable. It is advisable to consult a real estate agent for more information on these costs. In general, expect to pay three percent of a property’s price as legal fees and stamp duty, and two percent as agent commission. Compared to other Asian countries, these transaction costs are minimal. For example, in Indonesia, transaction costs add up to 26.37% of the sale price of a property according to statistics published by sgpropertyinvestors.com.
Retirement security
If you buy a new launch condo right now, it will likely continue to appreciate in value over the years. You can use it to acquire loans and buy even more properties. Alternatively, you can sell the property and invest the money in a retirement plan. If you start investing early enough, you can build considerable savings for retirement.
In conclusion, although the Republic of Singapore is a small island, it is one of the richest nations in the world. In addition, the country has a vibrant real estate market. Some of the benefits of buying property in Singapore include access to finance, a favorable environment for investors, as well as attractive rental returns and minimal transaction costs.