There is an increasing trend of Singaporeans buying overseas property as investment. Many unfavourable measures such as high Additional Buyer’s Stamp Duties (ABSD) and property taxes have forced Singaporeans to look abroad for more property investment opportunities. Before jumping onto the bandwagon, here are some of the basic factors you should consider to make the best possible purchase for your investment objectives.
1. Choose A Reputable Developer
There is typically some uncertainty involved with investing in a foreign real estate. The market circumstances, property laws, and the culture of the country can be unfamiliar to you. However, given the abundance of options to research and gather information, this should not prevent you from investing in a profitable property investment.
You should conduct in-depth research on the project developer you’re interested in. Look for their track record and number of years of experience. A renown and experienced developer will be able to deliver and successfully launch a new development without much delay or hiccups. This will definitely give you the confidence and peace of mind in your investment.
For example, Williams Corporation has been building homes for New Zealanders since 2010, producing high-quality homes in existing suburbs, close to environments where people can live, work and play. With such a clear vision and purpose, Williams Corporation quickly became one of the largest residential developers in New Zealand, with over 1,000 new homes to be delivered in 2022.
2. Future Development In The Area
The value of a property is usually affected by the future developments in the area. Property prices will increase when there are more facilities, better accessibility, and more lifestyle options available.
For example, in the case of Christchurch, there will be a $40 billion rebuild spend in the CBD. The Christchurch earthquake was the largest insured event in history and there will be new opportunities to redesign and rebuild a CBD that does not happen often. Hence, the potential growth and development in Christchurch is huge.
This regeneration process will improve living conditions and turn such areas into hubs for business, tourism and education. This revitalization will not only raise the value of the property there, but also increase its appeal to prospective tenants.
3. Close Proximity To Transport Options
Rental properties are generally a secure and practical alternative for investors looking to generate passive income, and the majority of tenants are either working professionals or students. When picking their temporary homes, they often place the utmost importance on accessibility. As a result, purchasing a property close to transport options is often a good approach for investors to ensure the rentability of their investment home.
So here you go! Above are the basic considerations that you should have when investing in an overseas property. If you would like to learn more, connect with our Singapore Client Consultant now and start your property investment journey.