There’s a ton of reasons why Singapore is a top pick for expat investors. It’s highly developed free-market trade structure, low corruption rate, and regulatory efficiency are only a few of these reasons. Given that Singapore is a relatively small country with an expanding economy, it makes strategic sense to invest in its real estate market.
If you’re a westerner who has little to no knowledge about this tiny country in the South Eastern side of Asia, you may be wondering why here. Today, Singapore has become the playground of the ultra-rich. Luxury brands are at every corner, 5-star clubs serve drinks with diamonds in them, and a cityscape comparable to that of New York’s and Dubai’s. An investor will also have several types of property to choose from, such as high-rise condos, commercial office spaces and industrial plants, and hotels.
Investing is a long-term process and is far from the get-rich-quick schemes. Investments that are started early behave as they should when it has time and space to do so. It may go against you for a year or two, but in a 10-year span, it’s bound to generate decent ROI. You’ll have to be patient and follow a long-term plan that consists of realistic goals.
Mix Your Investments
Don’t just pour all your capital into one luxury house and cross fingers that someday you’ll turn out right. Instead, mix your investment portfolio with short-term and long-term properties. For instance, purchase a rental property alongside a single-family home. The former can generate passive income on a monthly basis while the latter accrues in value. REITs, although relatively nascent as an investment option, can also be added to your portfolio to leverage the increasing valuation of businesses like shopping malls.
A property agent in Singapore is a great companion for traversing the large and complex market. These professionals already know the ins and outs of the market as well as the legalities surrounding property acquisition. Your Singapore-based property agent will create a list of properties you can check out based on the information or criteria you provide them. It’s best to work with a property agent who you feel comfortable working with and who understand your specific needs rather than the hefty commission at stake.
Most banks and private lenders will only entertain borrowers with 700 or better credit score from FICO. See if you have a high enough score to qualify for an investment property loan. If not, you’ll have to postpone your investing plans or find another means of raising the capital. Either way, check your credit report before looking for properties to avoid wasting your time as well as your broker’s.
Singapore is an absolute hotspot not only for the ultra-rich but for the avid investor as well. Use the guidelines above as a launch pad for your investing venture. Lastly, be careful about dealing with property agents in Singapore who aren’t qualified to manage such transactions. See if they represent a listed housing agency or can provide other credentials that back their claims.