Overseas Investment

Hot spots Abroad for Property Investor
Source: The Straits Time

Why some cities in established property market make good investment choices?

Philippines

In Philippines, demand for residential property is growing because income are rising and more people are leaving the family home to form their own households. Factor in rental yields of 5% to 7%, low interest rates and an inflation rate of about 3%. Rental demand including from expatriates is strongest near major business districts of Makati City, Bonifcio and Ortigas in central Metro Manila.

LONDON

The exchange rate of SGD to GBP has effectively cut the purchase price of central London properties by up to a third compared with seven years ago. Investors should look out for rental yields of 4-5% and strong prospects for capital growth and appreciation. Leases tend to run for a year. The stamp duty is the same for local and foreign buyers: 7% for homes costing more than 2 million pound; 5% for those costing 1-2 million pound.

BANGKOK

Apartments in downtown Bangkok are most appealing to investors. The prices are also more affordable than in Singapore. A one bedroom apartment in downtown Bangkok can be had for about $200,000. Some banks provides up to 70% loans for Thai property.

SYDNEY

Singdollar has appreciated against Aussie dollar by about 9% since March. Investors who off the plan can get stamp duty savings of up to 5%. Interest rates have been declining for the past year and are tipped to fall further with mortgage rates now starting at around 5.5%.
To curb the rapid rise in property purchase, investors to take note of following government policies & restrictions across region.
  • Singapore  – has extensive policies in this area. Foreigners can buy private condominium units but must pay an additional buyer’s stamp duty of 15%. And only PRs making a contribution to the country might be granted permission to buy a landed property. Foreign investors will continue to favour property in Singapore because of is well-structure legal environment and clear investment process.Sentosa Cove is the only place in Singapore where non-PR foreigners may buy a landed home. (Minimal restriction)
  • Malaysia –no restrictions but subject to a general pricing threshold of RM1 million (S$394,340) with effective 1st January 2014 from the previous RM500,000 (S$197,230) and above per unit. (Minimal restriction)
  • Thailand – foreign buyers can buy freehold for up to 49% of a single development. If exceeded, the tenure will be leasehold. Foreigners can buy land with a 30 year lease. (Some restriction)
  • Indonesia – a foreign national who is not a resident or considered to benefit national development is unable to purchase property in Indonesia. (Most restriction)
  • India – A foreign national of non-Indian origin residing outside India cannot purchase any property unless it is acquired by way of inheritance from a person who was residing in India. (Most restriction)
  • Vietnam – foreigners can buy apartments or condominium units with a 50-year lease. Foreigners are not allowed to own land. (Most restriction)
  • China – non resident foreigners are not permitted to buy property in mainland China. (Most restriction)
  • Hong Kong – Foreigners can buy property without restriction but must pay a 15% additional buyer’s stamp duty. (minimal restriction)
  • Australia – foreigners can buy uncompleted properties or land earmarked for development. Foreigners cannot buy homes on the resale market. (some restriction)

*The information provides herein are for general reference purpose.  It does not constitute any financial or investment advice. Buyer to seek financial institute for advice of any sales and purchase eligibility in making any investment or other decision.