Singapore is one the fastest growing cities in the world. For the last few years, the city has been offering numerous businesses opportunities to both small and medium-sized enterprises and corporate giants. This is why many businesses across the globe are highly interested in opening their branch offices or headquarters in this city. Singapore is known to have one of the best airports in the world. Its streets are clean. It is well known for its electronics and ship building industries. But in spite of being a modern city, Singapore still has its charm. Its multicultural heritage together with an abundance of tourist spots makes it one of the best places to buy property in the world.
The growing economy and improvement in per capita income have attracted many people to come and settle here. Top class transit system, world-class infrastructure, cutting-edge health care facility and first class international schools have made the city a great place for buying a property and living here permanently. Many businessmen, IT professionals, students, job seekers are coming to this city day by day for fulfilling their own purposes. These heterogeneous people look for their own accommodation in this city.
As the consequence of it, the real estate market in Singapore has received a significant growth. Therefore, this is the right time to invest in Singapore property market. It has now become one of sought-after property investment destinations in the world. Many builders, property developers, contractors, realtors, and reputable construction companies from Singapore and international market have started their real estate projects here. Their main objective is to expedite their progress and uplift business growth. They want to grow quickly and increase their profit significantly. The proximity of China has diversified the economy of the city. Needless to say, free trade policy of the country has helped in the rapid growth of the city.
It is the right time for the investors to invest in Singapore property as the private property prices are just raising at a slow pace and therefore it is the best time for investing. The private property prices are still very low in Singapore as compared to other attractive places in Asia. The island’s strategic location and the clean government with investor friendly policies are providing opportunities to investors and is the ideal place to invest. From business point of view many big business corporate are seeing Asia as a huge market. Singapore provides them the ideal infrastructure to base their business headquarters.
Foreigners are permitted to invest in Singapore property. A foreign national willing to stay in Singapore for a longer period of time can also apply for Permanent Residence visa under Enterprise Development Board’s Global Investor Program. However government has put a clause wherein they have to invest at least $1 million out of which some money can also be invested in the real estate market.
A large portion of Singapore Property is purchased by foreign investors which is nearly 25% of the total sales. The island provides political stability and clear single policy tax rule which does not tax capital gains. There are other government policies that encourage foreign investment.
The garden city provides high quality infrastructure equivalent to any western developed nation and the vibrant environment which is pleasant all through the year which makes Singapore a target investment city. Singapore is land of opportunity and investor investing in Singapore Property as Asset is seeing it as a very lucrative opportunity. Even the government is open to foreign talent and especially welcomes capitalist investors who can add value to Singapore’s economic growth. There are many other schemes being run by the government such as “P category” work pass for well qualified foreign talent and entraps for attracting foreign investors. As a cosmopolitan culture, the city provides is attracting investments and investors from all across the world. Some of the benefits of investing in Singapore’s property include:
#1 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 14thlargest exporter and the 15th importer in the world. These statistics show that Singapore is an investor-friendly nation. What’s more, the country has a robust government and mature political system, and this translates to low political risk.
#2 Financing Available To Foreigners
Foreign investors can easily access financing to buy properties. Financial institutions can offer up to 80% mortgage finance to foreign investors. However, it is important to note that the terms and conditions of such loans generally vary fromone lender to another. Repayment periods for such loans range from 25 to 35 years. Moreover, interest rates in Singapore are quite low and foreign investors do not have to worry about capital gains tax.
#3 Attractive Rental Yields and Minimal Transaction Costs
Singapore has attractive rental yields. Figures published by singaporepropertycycle.com show that from 2008 to 2013, rental yields ranged between 4.08 and 7.38. However, the return on your investment will depend on factors several factors including the location of your new launch property. In addition, a property investor has to take into account costs such as maintenance fees, solicitors’ fees, agents’ fees, stamp fee and taxes where applicable. It is advisable to consult a real estate agent if you would like to learn more about 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 instance, in Indonesia, transaction costs add up to 26.37% of a property’s asking price according to statistics published by sgpropertyinvestors.com.
#4 Security in Retirement
If you buy a new launch condo right now, it is likely to continue to appreciate in value through the years. You can use such 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 a sizable retirement nest egg.
In conclusion ,there are a lot of properties for foreigners in Singapore, whether for sale or for rent. Since it is one of the top countries in the world in terms of financial and economic activity, it’s no wonder why a lot of people are looking forward to being permanent residents. If you are one of those people, then go ahead and check the property listings.
Difference between new launch projects and resale property
New launch projects are developments under construction. These properties have not yet been built, and developers sell their units off the floor plan. Sometimes, the developer builds show suites or a mock-up of the layout to help prospective buyers to visualize the space and placement of furniture.
On the other hand, resale units are completed properties, and buyers go into the actual unit to inspect and observe what they are going to buy.
first and foremost may i take you through a few paragraphs on the reason for investing your money in a Singapore property with new property launch
People have been working quite hard for earning some extra money. This is done, so that some good investments can be made, for ensuring a safe future. More and more money has also been earned by people so that this extra money can be invested through various financial instruments that are available in the investment market. Literally, property is not considered as a financial instrument, but many people choose property as an instrument of investment. The property has a very high value in almost all the places across the globe. Property can be purchased blindly and after two or three years, a value hike can definitely be seen.
However, if maximum returns are desired from an investment in property, things should go right. One has to choose a property, at such a place, where the cost of property is likely to rise at a faster rate, as compared to others. The property cost will rise only if there are some developments taking place there. After development starts at that place, the value of property will gradually go up at a very fast rate. If you are expecting some developments to take place in the near future, you must definitely go ahead for making an investment there. As far as the development is concerned, Singapore is the city, with highest developments throughout the world. If you are planning on investing in Singapore properties, it would really be a great decision. If you have thought of making an investment, you can definitely opt for various latest property launches. But many people are not aware about the new property launches in Singapore as well as the prime districts properties in Singapore.
You can get complete knowledge about the new property launches through the World Wide Web. There are various websites over the internet, where you can obtain complete information about Singapore property investment as well as new condo launch in Singapore. You can also know about the ways of booking properties. You can also get complete information about some interesting new launches in the property market of Singapore. Through this, you can get a complete idea about properties in Singapore and at the same time, these websites allow you to book and buy property as well. These websites offer complete information about the process of buying properties as well as selling them. The top officials of these websites always reveal that they carry out the process with complete perfection.
If you have the desire of making an investment in new property launch in Singapore and you don’t have any ideas of doing that, you can go the official sites of these websites for getting a clear picture. On these websites, you can get the options and the idea of buying property in Singapore. Thus, you will get a good value for your hard-earned money as these websites will provide you complete guidance with the same.
Back to our main topic: At first glance, it may seem that the resale unit is the better investment choice. Firstly, the buyer can see exactly what she is getting. Is the unit bright and breezy? Is the view blocked? Is the noise from the busy road below travelling up into the unit? In a resale unit, the buyer is able to gauge for herself.
Secondly, since the resale unit is completed, the unit can be used immediately for own occupation, or for rental purposes. In a new launch project development, the property may take up to 5 years to construct. This results in loss of enjoyment of property, or loss of rental income.
Nonetheless, despite these two disadvantages, there is significant upside to buying a new launch project. Here are the 8 main advantages of buying a new launch project.
8 advantages of buying a new launch project
1) The buyer enjoys low installment repayments while the property appreciates in value.
The monthly repayment of new launch projects are low, due to the progressive payment schedule. As such, during the construction phase, the monthly installment is low. At the same time, the market price of the property is increasing. This results in a very good return on investment (ROI).
Compared to resale units, the monthly repayment is the full instalment, which lowers the ROI of the investment.
2) For project launch, there is no depreciation of the asset before the property is completed.
All properties depreciate in value (it is the land that the property is on, that appreciates in value. As such, from year 0 onward, the property is declining in value. When a buyer buys an older resale property, the property has already lost a significant portion of its value.
However, if she buys a new launch project, the property does not depreciate in value. As it is not completed. the property does not even hit year 0.
3) In Singapore, there is a Seller Stamp Duty (SSD), levied on the seller, if they sell their units within the first four years of purchase.
As such, a buyer of a resale unit must quickly find a tenant. If she doesn’t, she will be paying hefty monthly repayments while having an untenanted unit. Selling is not an option to her as the SSD is very expensive and if she sells, she will make a big loss of her investment.
However, a buyer of a new launch project is spared from hefty monthly repayments, as mentioned in point 1. The construction period is counted towards the four year period. Usually, when the property is ready for occupation, the four year is up, and SSD is no longer applicable. The buyer of the new launch project now has both the options to rent the unit out, or sell it away. Both options will give her a gain on her investment.
4) A new launch project is a new property. A resale property is a second-hand property, or third-hand property, or more. There is a novelty factor in staying in a new property, for the buyer, or for the tenant.
5) In promoting and marketing new launch project, the developer sometimes gives huge discount, subsidies, or vouchers to induce the sale. However, for resale units, individual owners do not give discounts, subsidies, or vouchers. As such, it is possible to negotiate a better deal with developers, than with individual sellers.
6) When purchasing a resale property, there could be hidden costs that is not apparent, such as repair costs, or pest termination costs. This is common, especially if the buyer is not accustomed to checking a unit carefully for defects and problems.
Thus, the ROI may be lower than expected if the repair costs are factored in.
For a new launch project, there is peace of mind for the buyers as developers are required by law to rectify any defects for a period of one year. There is no hidden repair costs, and no nasty surprise when the buyer or tenant moves in.
7) When a new launch project is completed, the condominium facilities at new launch are at its best condition to be enjoyed.
The gym have fully functional equipment, the gardens are beautifully landscaped and the pool is clean and nice.
For an older resale property, the facilities may be poorly maintained, and enjoyment of poor equipment and facilities will not be as complete.
8) Lastly, it is always cheaper to buy a new launch project when it is not complete. The price of the same unit is always higher when the construction finishes, and buyers and tenants can move in.
For an investor with a keen eye on good ROI, it makes sense to purchase the unit when the price is low (under construction), than when the price is high (completed).
Therefore, although buying a resale property offers immediate use of the property, buying a new launch project is the better choice for investors. As elaborated in the eight points, buying new launch project offers a better ROI than resale property, for investors looking to fight inflation and increase personal wealth.