Why Expats Should Invest In Singapore Property Market
The city-state of Singapore is the place to live! Also it is a country where investment in its the property market yields good return. With a top class transit system, world class health care and first-rate international schools, the city state has become a great place for expats to buy a property and raise children.
Singapore is in fact one of the most modern and cleanest cities in the world. It seems that Singapore was built neatly by an obsessive-compulsive Lego master! Everything is perfect here. The city planners managed to install shoulder-to-shoulder buildings, parks, gardens, water catchments restaurants, cafes, shopping and zoos in the most efficient way possible in an area of just 712 square kilometers. The crime rate in the country is exceptionally low. It is a great place for expats as there are all modern amenities available and locals are very friendly. Even its downside (e.g. a strict rule of law) is actually a good thing! Therefore it is a great place to stay or invest in the property market.
So what specially makes Singapore’s property market so attractive? Let’s take a look at some of the factors:-
1. First thing first, there are no restrictions on the purchase of properties by the expats. Expats can easily buy a property in this city country.
2. Investment in the property market of Singapore is one of the few investment options where using the bank’s money could not be any easier. The ability of expats, to make a down payment, leverage the capital and consequently increase overall return on investment, is high in Singapore.
3. General cost of property buying in Singapore is less than many developed countries. But obviously, buying a property in Singapore entails certain costs, which includes 18% VAT for new properties, up to 3% in stamp duty, about 1% legal fees for the property lawyer and registration fees for the official transfer of ownership.
4. On average, about 10,000 new apartments are built in Singapore per quarter. But due to the government’s cooling measures, prices are stable at the moment. Home prices actually dropped at a faster pace in October 2013 – about 1.2% month on month basis. It is a prove that the government’s efforts to cool the property market are working.
5. If the property in Singapore is rented, then the investment would give positive monthly cash flow, even after mortgage and other related expenses are paid. This cash flow increases over time as mortgage financing decreases and rental rates amplify.
6. Generally speaking, as communities grow, the value of property also grows. The longer a property in held, the more potential of getting a high return. This factor works at its best in Singapore.
For the above reasons, expats should consider investing in the Singapore’s property market. However, some districts are more popular to expats than others. For instance, traditionally foreigners have preferred to live centrally in leafy up market areas such as Orchard Road, Bukit Timah and Tanglin. Newly developed Sentosa Cove, where homes feature private yacht berths, has recently joined the desirable residence list.