Why i should invest in Overseas Properties? (In Singapore Context)

Many have questioned the rationale of investing in overseas properties. While there are risks involved, it certainly does help in diversifying your investment portfolios especially when the property prices are so high in Singapore. Moreover, with the cooling measures that were in place since 2013 (TDSR, additional buyer stamp duty, seller stamp duty), it has become even more expensive / difficult to purchase a property here. Since this is the case, shouldn't we be looking at property elsewhere that has less restrictions but with more capital potential?

Just few days back, I was having a casual talk with one of my clients where he told me that he wanted to invest in a property that has high rental yield and high capital potential. That instance, I looked at him and asked him whether he is open to invest in an overseas property instead? He appeared a bit hesitant in answering. I continued on with my rationale with conviction and eventually he was convinced that at this point in time, it is better to invest in overseas property.

This is what I shared with him..

1) Overseas Property tend to have lower quantum and deferred payment meaning that in most instances, it will require you to make a down payment (typically 10% to 30%) of the purchase price during the signing of the sales contract, and the balance to be pay only at TOP. This works in the investors' favour as they do not need to fork such a huge amount at that instance. In most cases, the balance payable on TOP can be paid using the available bank loan.
2) No Additional Buyer Stamp Duty
3) Capital Gain Tax only on the Gain unlike SSD which is based on the Selling Price
4) Higher Rental Yield / Guaranteed Rental Yield for some Cases
5) Higher Capital Gain Potential as compared the property market in Singapore where it is already saturated
6) Chance to flip the property in the sub-sale market without being penalized for flipping/speculation - No SSD
7) Hedging against FX
8) Form of Diversification (its always good to have different portfolios)

There are definitely risks  involved in investing in overseas property such as you may not see the actual site development unless you make a trip down, what are the leasing options, who will manage the property for you, the chances that the developer declare bankrupt before TOP etc. Therefore, it is important that you engage a professional real estate agent who has the expertise to advise you.

You can visit PropertyforSaleinSingapore for more information.

Upcoming Launch in Cambodia – The Peak Cambodia

The Peak Cambodia is a premium and luxurious 55-Storey Mixed Development (Residential, F&B, Retail, Office, Hotel) located in the heart of Phnom Penh City. It has the tagline of - "Be Among the Elites, The One and Only, Shangri-La Hotel Superb Living at High Affordable Price" This is the second Mixed Development in Phnom Penh City after the successful launch of The Bridge Cambodia by Oxley Holdings and Cambodia Worldbridge.

Reasons to Invest in The Peak Cambodia

Super Prime Location

• Sharing the same address as Shangri-La Hotel Cambodia (Rated 5-Star Hotel WorldWide Luxury, Prestige of Ownership)
• Within walking distance to NagaWorld Casio (listed in Hk), AEON Mall (the largest Mall in Cambodia), Embassies, Ministry of Foreign Affairs, National Assembly
• Tourist Hub, Near to CBD Area

Elegant Design with Premium Lifestyle

• Tallest 55-Storey Mixed Development with luxurious Facilities (Infinity Pool, Gym, Swimming Pool, Outdoor Lounge etc )
• Iconic Timeless Design
• Scintillating River and City View
• Live, work & play within one development

Convenience

• World Class Zaman International School
• Phnom Penh International Airport within 30 minutes
• Lifestyle eateries and entertainment just at your doorstep

Reasons to Invest in Cambodia

Cambodia has posted strong economic growth in recent years, 7% in 2014, which is expected to grow 7.3% in 2015 and 7.5% in 2016. The increase in foreign investment, as well as strong growth in the tourism, garment and agriculture sectors are the main contributors for Cambodia economic growth. This is expected to continue and with the integration of Cambodia in the ASEAN free trade agreement by December 2015, which will do away with reduced tariffs and duty taxes, we can expect more businesses and investments coming into Cambodia. This will push the property prices up with the increased demand and at the same time, there is a growing middle class locals in Cambodia who is looking to purchase or rent luxurious apartment in Phnom Penh City. Recent reports have indicated that the average rental yield in Cambodia have reached a staggering 10%, but with the property prices still relatively low in the contingent. This is a good opportunity to invest in Cambodia Property and take advantage of the first mover advantage before the property prices go up.

Visit propertyforsaleinsingapore for more information and to register your interest!