Hot spots Abroad for Property Investor
Source: The Straits Time
Why some cities in established property market make good investment choices?
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.
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.
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.
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.
*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.