Newby Posted January 19, 2015 Report Share Posted January 19, 2015 Singapore: A good long term investment? What do you people think of properties in Singapore? Pros: The Singapore economy is well run, The IMF expects it to grow quite a lot, compared to other advanced economies (Europe, North America), around 5-6% or so. Although the prices have risen quite a lot, the price of condos (which foreigners can buy) is only about 10% higher than in 2008: http://www.singaporepropertycycle.com.sg/market-trends/singapore-property-price-index-by-housing-type/ You can make an 80% mortgage, at a fixed interest rate of 1.5% (in Singapore $). That's basically free money, though I have to check if 20-30 years is possible (checking now). Constantly appreciating S$, at about 5% a year compared to the US$ (but a slight slump during the last months). Long term increase in price of properties (over 20-30 years: about 4% a year) Near HK, can go there in the morning and come back in the evening, cost about HK$1,500 for the flight, to sign contracts or check the flat. Cons: Low rent revenue (about 3%, similar to HK) Now a tax of 20% of the purchase value, but overall I think in line with most other countries? 20% tax on revenue from rent Conclusion: Overall, a safe investment, and with the appreciation of the S$, increase in property values, and revenue from rent, you are talking of about 10% a year. I am thinking of a long-term investment. I would buy a property with a 20-year mortgage (80% of the value), use the rent to pay off the mortgage, and then live my retirement on the rent. I can envision an appreciation of the HK$ within the next 20 years, but I live to diversify a bit, and a property in Singapore is safer than in many other places, and as long as Singapore will continue to be managed by PAP you can't get wrong, can you? What do you think? =============== (in edit): LINKS: SG property News : https://www.srx.com.sg/singapore-property-news Link to comment Share on other sites More sharing options...
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