A 2020 Straights Time Survey named Singapore the #1 City in terms of “Property Investment Prospects”. There are a number of factors that influence real estate market perceptions such as civil unrest – as in the case of Hong Kong – or even natural disasters as in the case of Australia.
Compared to the rest of the world, Singapore has remained a thriving market for property investment. Depending on your legal status within the country, there are plenty of different ways to go about investing in real estate within the Island-State.
However, an investment is only as good as its returns, and so – we’ll be taking a closer look at various different ways foreign (and local) investors make money within the real estate market within Singapore.
Identify your Purpose in Singapore
Before you simply wire your investment dollars to a real estate broker or developer in Singapore, it’s important to identify your purpose for visiting the country. If you frequently visit the Island for business, perhaps you’d want to invest in a condominium to reduce expenses while on business trips.
Many professionals have property for rent in Singapore as a means of increasing their passive revenue when they are not using it themselves. While a condominium for rent in Singapore won’t necessarily provide you with a significant ROI – the rental market space is quite robust, meaning that on a monthly basis, you will receive a steady cash flow.
The reason why the rental market is quite steady is largely due to the illegality of “short term rental schemes” such as Airbnb within the country. This doesn’t mean that “certain property owners” are not renting out their properties on short stay websites like Airbnb – albeit, they do run great risk at doing so.
The Singapore government has strict restrictions on how one can have a condominium for rent in Singapore. Violations may result in jail-time or a massive fine [in some cases up to $200,000].
Thus, finding tenants for long-term stays typically provides up to 3% ROI annually and remain one of the safest ways to build up passive income.
If you’re not thinking of catering to the whims of tenants, you could think about “flipping the condo” instead. However, if you are considering this approach – you need to understand that there is a forced “holding period” for new purchases according to Singapore Law.
The government implemented these protections to keep the real estate market stable – meaning that your investment will take at least three years to pay off. Nonetheless, looking at the trends within the Singapore Real Estate Market – the payoff could prove to be significant.
If you’re thinking of putting up a condominium for sale in Singapore, it’s probably the safest way to guarantee a significant increase in your ROI as compared to long-term rentals.
Irrespective, either approach will require the assistance of a Real Estate broker or adviser in Singapore.
Can Foreigners invest in Singapore?
While it is slightly more difficult/expensive for foreigners to invest in Singapore Real Estate, if you have an Experienced Home finder in Singapore, real estate can still be a very lucrative market for foreigners. Of course, finding a qualified Real Estate Agent in Singapore might be difficult due to the sheer number of local real estate agents available.
Unlike other Asian markets, Singapore’s official language is English. This means that Real Estate Agents in Singapore aren’t merely “glorified translators” but actually work similarly to how property investment work in places like the UK and the US. In other words, there is a lot of competition for premium real estate.
However, finding a reliable Real Estate Broker or Developer in Singapore is an essential for a successful investment strategy. Hopefully, this would be an established local representative that can help investors navigate local laws and requirements and adhere to regulatory practices.
Additionally, an experienced Real Estate Agent in Singapore knows of other ways on how foreigners can obtain revenue through the real estate market.
New Launch Condo – Singapore Investors Magnet
With such a stable property market and a region void of political conflict, project development is on an upward trend. New Launch Condos and other Property Development Projects provide massive investment opportunities where foreigners can invest in a “property investment fund” or Trusts. This includes a wide variety of REITs [Real Estate Investment Trusts] as well as mutual funds targeting property development projects
Considering that Singapore is designated as a “Tax Haven”, there are many different benefits for investing your money in a thriving and stable market within the country. With 20% levied on personal income at the highest tax bracket [$240k US per year] and the island-state does not have tax capital gains.
The Singapore Real Estate Market is strictly regulated by the government. This is why it is vital that you have a local partner within the country to ensure that you are following regulations to the letter.
This is why we always recommend having some sort of partner within the country who understands property law and how to navigate government regulations. Nonetheless, Billions of dollars are moved annually within the Singapore Real Estate market and all future projections seem to indicate that the trends won’t stop anytime soon.
Where to invest is Equally Important
While we did speak about the “purpose” of your investment, the “location” is similarly important. You need to be able to align your intent with your investment. It’s not the same to rent in Central as opposed to Woodlands. These neighborhoods attract a particular profile of tenant – and so it’s important that you have this defined as well.
An adept Real Estate advisor in Singapore should be able to assist you on making a decision on which neighborhood or section would benefit your bottom-line the most.
It goes without saying – If you don’t have a solid plan worked out, you might have difficulty generating significant Return on Investment.
How do you find the Best Real Estate Broker in Singapore?
There are several ways you can go about finding a reputable real estate agent in Singapore;
- Internet Search
- Local Inquiry
- Recommendations
If you have absolutely no connection to the Singapore Real Estate market, your best bet is via a good old fashion online search. Compile a list of your top candidates and reach out to them digitally. Thoroughly vet your candidates by reading reviews, consumer reports and so forth.
Local inquiry is only possible if you are physically inside the country. Considering that Singapore’s official language is English, you would have no problem getting around and inquiring yourself. However, while Singapore is an island, it is still a complex place to navigate if you’ve never been there. Thus, doing some initial digital groundwork is always beneficial to real estate objectives.
Finally, if you do have some connection to the real estate market – you should be able to easily track down a reputable real estate broker in Singapore.
What Now?
If you are interested in either buying/selling or buying/renting condos in Singapore, or are looking for any other investment opportunities – you can always reach out directly to us here at Jimmy Sum. With a well-established record of accomplishment, considerable wins within the Real Estate Market and a deep understanding of the future trends of the marketplace – your investment is in safe hands
Even if you’re not 100% sure whether you’d want to invest into the Singapore Real Estate Market, we are always available for a Free Consultation, where we can help you decide whether the Singapore market is the best place for you.
One thing is certain, Singapore is currently the #1 City for Property Investment Prospects and will continue to be so for the foreseeable future – the only thing you should be thinking about is how you can leverage that to your benefit. Here at Jimmy Sum – we’ll walk you through the process and help establish you within one of the most lucrative markets in the world.
