Located off the coast of Malaysia, the Republic of Singapore is one of the busiest shopping centers in the Malaysian and Asian regions. However, moving from one part of the country to another is relatively easy, thanks to the large-scale rapid transit system (MRT) that covers most parts of the island nation. The four official languages of Singapore are Malay, Mandarin, Tamil, and English. When it comes to investment opportunities in Singapore, the real estate sector has a huge advantage. Investing in the Singapore real estate market has the following benefits:
A favorable environment for investors.
According to the 2013 Economic Freedom Index, Singapore is the second most free economy in the world. The Corruption Perception Index classifies this Asian country as the least corrupt country in the world. It is the 14th largest exporter and the 15th largest importer in the world. These statistics show that Singapore is an investor-friendly country. In addition, the country has a strong government and a mature political system, which means low political risk.
Loans available to foreigners
Foreign investors have easy access to financing to buy real estate. Financial institutions like EasyCredit.com.sg can offer up to 80% of mortgage loans to foreign investors. However, it is important to keep in mind that the general terms of these loans generally vary from lender. Repayment periods for these loans vary from 25 to 35 years. In addition, Singapore's interest rates are so low that foreign investors need not worry about capital gains taxes.
Attractive rental yields and minimum transaction costs
Singapore has attractive rental returns. The figures published by singaporepropertycycle.com show that the rental yield from 2008 to 2013 is between 4.08 and 7.38. However, the return on investment depends on several factors, such as the location of the new launch property. In addition, real estate investors should consider costs such as maintenance costs, lawyer fees, agency fees, stamp fees, taxes, and so on, where applicable. If you want to get more information about these costs, we recommend that you consult with a real estate agent. In general, we expect to pay 3% of the price of the property as legal and stamp duty and 2% as agent fee. These transaction costs are minimal compared to other Asian countries. For example, in Indonesia, transaction costs represent up to 26.37% of the sale price of a property, according to statistics published by sgpropertyinvestors.com.
If you buy a new launch condo at this point, it may be valued for many years. You can use it to get a loan and buy more properties. Or you can sell your assets and invest in retirement. If you start investing early enough, you can build a large nest of retired eggs.
In conclusion, the Republic of Singapore is a small island, but one of the richest countries in the world. In addition, the country has a dynamic real estate market. The benefits of buying real estate in Singapore include access to financing, a favorable environment for investors, attractive rental yields and minimum transaction costs.