There are so many countries that people consider when they want to invest in real property. Among these countries is Singapore. Singapore has a tropical climate and also has multicultural population. This makes it a popular real estate investment state. Before settling on Singapore as your investment location, there are things about real estate investment in Singapore that one needs to be aware of.
Here is a guide to investing in property in Singapore
Pricing is among the determining factors when it comes to investing in property wherever one intends to invest. When investing in Singapore, one should be aware of the pricing and the basics surrounding the pricing. Mostly, pricing is calculated per meter square. Price changes should also be considered. At first one may not get their return on investment since the price change rate is a bit lower. However, after some time like five years the rate increases.
One should also be well aware of the kind of ownership they should expect. In Singapore, one can get the property on either leasehold or freehold. Freehold means that one has permanent rights to the residence. On the other hand, buying property on leasehold means that one is only an owner for a certain period. The most common periods of leasehold are thirty years, sixty years, ninety-nine years and nine hundred and ninety-nine years as the longest. One should be well aware of the kind of property they are buying especially if they will want their dependents to inherit it.
Singapore is an attractive place for financial investment for foreigners. Landlords who get a minimum of fifteen hundred US dollars up to a maximum of twelve thousand dollars have a tax rate of fifteen point one percent. There is a progressive tax which depends on whether one is living there or not. Owner-occupied residences add another additional four percent. For foreigners, they add another ten percent. The tax changes as the value of the property increases. To keep property investments legitimate, inflation of one’s portfolio by round tripping is illegal so is money laundering. All these may cost the buyer up to thirty-seven percent taxes in some instances.
Though Singapore is a small country, the value of the property depends on the location of the property. There is a state-sponsored program which subsidizes the housing costs. The location will also affect the price, for instance the upcoming Twin Vew at West Coast Vale is one of the upcoming condos in Singapore that are very affordable compared to similar condos found in Bukit Panjang. Where one will buy depends on their budget towards the same course.
There are various acts which govern property ownership in Singapore. These include the following acts; stamp duty act, land acquisition act, residential property act, land titles act and property tax act among many other laws. All these acts are put in place to ensure that there are clear rules governing property ownership in this country. A foreigner will have to be well versed with these laws before they start investing so that they do not find themselves on the wrong side of the law.
The above are few factors that will help you in considering investment in Singapore. Be sure to research widely to get the other little things.