Hi,
Has anyone thought about investing in Singapore???
Here are some reasons:
1) The property market is coming out of a slump – so prices are quite low. Well not low low but low for Singapore.
2) Analysts predict that by the end of this year alone – prices will be up 10%
3)Bank interest rates here are 1% in the first year then goes up to 2% then stays around 2.5%. Foreigners can borrow here.
4) There is no Capital Gains Tax here.
5) The exchange rate for Aussie dollar to Sing is excellent. You get about $1.25SGD for $1AUD.
6) It is easy to find tenants as there are heaps of expats here. Vacancy rates are very low now. Rental is high. We are currently renting a place and paying $3500 a month. In good areas you can get more!!!
7) The only thing is banks will only lend foreigners 60-70% of the purchase price so you would need the deposit.
The exchange rate will work in your favour here as say you need a $200,000SGD deposit – that is only about $160,000AUD.
That’s all from me [blush2]
Mei
I bought 2 properties in Singapore in the 90s when things were really in a frenzy.
Saw the inevitable and sold before the big crash and thankfully made money.The market today is still reeling so yes, a perfect time to buy. However!!!!
I would only buy in districts 9, 10 and 11.
Would never contemplate leasehold no matter how good the positive cash flow.
There was capital gains tax (introduced to curb the speculation which drove the frenzy) so please be careful and get qualified advice on this as I am not aware of the law being changed.
My main concern is still the oversupply of brand new properties. They are everywhere and are still being built!!!
I am surprised to hear you say there is a shortage of accomodation, but I am not suggesting this is not the case, just surprised.Anyhow good luck if you decide to proceed, I enjoyed the ride.
Brady5
hi meilin08
I haven’t looked at this market but it is very interesting One of my work mates ( I think he can be put in that loose catergory) has been going to singapore and hong kong and has increased his movements up there.
I would be interested in a couple of examples of what you see as cheap investments.
pm me if need behere to help
Hi Brady5,
We have already bought here- bought last year – on Sentosa – they have built canals there…. not ready till end of 2006 and we have already made $200,000…..
Yes I have checked and double checked – CGT was abolished a few years back….
The condo we are in – there are no vacant units here- and I know tat to be the case in alot of condos.
Hi Grossrealisation – will pm you details.
See ya, Mei
Hi All & meilin08,
I am an Aussie living in Singapore the last 4 years and have been here previous during the “crazy” days.
This is a market that I am not brave enough to get into….too many rules can be changed overnight. I see the neverending building of Condos just goes on forever. In good times prices up 40%. in bad times down 50%. They are probably just getting off the bottom end now.
I don’t see any real future in rental properties here as I rent and I know lots of expats that used to be here getting the companies to pay rents now get a lot less in rental allowances. My last rented place here used to rent for $4,500 per month. It is now rented at $2,000 per month. So that is what it is like for a 5 year old place….new properties to rent everywhere.
Be brave if you dare. Good luck.IMAC.[cigar]
Looking to go Positive
Hi IMAC,
The condo I’m in “in the hey days” used to be rented out for $5000. Down to $2000 in the slump about 3 years ago….. now back up to $3500-$4000.
Even at $2000 – more than enough to cover interest repayments on say an $800,000 place.
Have you seen the rent they are getting at “the caribbean”….. $5000-$10,000 – depending on how many bedrooms…. I’ve just taken that as an example as it is near where we have bought on Sentosa.
Well like I say we have made good money out of it and my opinion is it is just going to go up.
Mei
BTW,
This is our second purchase here in Singapore.
Back in 2000 we bought an apartment – sold it in 2003… only made about $80,000 from that – better than nothing:)
That was a government flat though – not a private condominium.
Mei
Hi Brady, where are districts 9, 10 and 11?
As there are no real estate agents with shop windows in Singapore, where is the best place to look to find good deals on property? Are there some good web sites to look at?
I have recently moved to Singapore and am getting a rental allowance of $2500/month and was thinking it better to put this money into a loan.
The one problem with Investing in Sing prop. is the fact that the interest and depreciation is not tax deductible (as I understand it). But the investment is positively geared anyway when you consider the rental easily covers the interest. So I guess this isn’t really an issue.
Thanks for the comments on this thread – they got me thinking.We find comfort among those who agree with us – growth among those who don’t. Frank A. Clark.
Originally posted by meilin08:Hi Brady5,
Yes I have checked and double checked – CGT was abolished a few years back….
See ya, Mei
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Dear All,1. As a Singaporean, I can confirm that presently there is no CGT.
2. CGT was first introduced in 1996 in Singapore to curb the property speculation frenzy then and was subsequently withdrawn only a couple of years back during the market slump, as what MeiLin has posted earlier.
3. However, please do not rule out the possibility of the Singapore Govt re-introducing the CGT again in the near future if a repeat of the 1996 property market frenzy will to recur again. This is according to the views of Mr Mah Bow Tan, the Singapore Minsiter for National Development.
4. For your kind update,please.
5. Thank you.
regards,
Kenneth KOHOriginally posted by meilin08:Hi Brady5,
We have already bought here- bought last year – on Sentosa – they have built canals there…. not ready till end of 2006 and we have already made $200,000…..
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Dear Meilin, Brady5 and fellow forumites,1.What Meilin posted here has also been confirmed and widely reported in the Singapore Business Newspapers dated 11th Oct 2005, entitled, “Speculation makes comeback in high-end property market”.
2. for the full report, please refer to the following link:-
http://business-times.asia1.com.sg/sub/news/story/0,4574,172386-1129060740,00.html?
3. For your kind update, please.
4. Thank you.
regards,
Kenneth KOHOriginally posted by IMAC:Hi All & meilin08,
“This is a market that I am not brave enough to get into….too many rules can be changed overnight. I see the neverending building of Condos just goes on forever.”
IMAC.[cigar]
Looking to go Positive
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Dear IMAC,1. Well said here!. I do share your concerns and sentiments about the Singapore property market , despite being a Singaporean myself.
2. Though, I have greatly profited from the last boom from the Singapore property market, I still find that it is easier for me to make monies investing in the Australian residential property markets.
3. For those intend to invest into the Singapore property market, you will need to be a good property speculator/trader and can stay well-informed and abuzz with the real market movements on a real time basis, as the property market sentiments and market pricing do change quite fast over time.
4. Please take care and wish you all the best in investing into the Singapore property market.
5. For your kind update, please.6. Thank you.
regards,
Kenneth KOHOriginally posted by Brady5:I would only buy in districts 9, 10 and 11.
Would never contemplate leasehold no matter how good the positive cash flow.
Brady5
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Dear Brady5,1. Care to share the rationale behind your a/m thinking so that we may learn?
2. Thanks.regards,
Kenneth KOHHi Chief Wigam,
Districts 9 10 and 11 are in Orchard, Tanglin
Holland and River Valley. Very expensive areas.Good idea investing your rental allowance into property.
I think condo’s around the 2 future casinos will do well. The Carribean/ The Berth/ The Sail at Marina Bay.
We bought into The Berth.
Websites to look at are: http://www.8links.com and
http://www.condo.com.sgGood luck, Mei
Originally posted by meilin08:Hi Chief Wigam,
Districts 9 10 and 11 are in Orchard, Tanglin
Holland and River Valley. Very expensive areas.Good idea investing your rental allowance into property.
I think condo’s around the 2 future casinos will do well. The Carribean/ The Berth/ The Sail at Marina Bay.
We bought into The Berth.
Websites to look at are: http://www.8links.com and
http://www.condo.com.sgGood luck, Mei
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Dear Mei Lin,1. Location-wise, I can agree with you that investing into these projects will make a quality buy.
2. My only concern is whether these projects have been “over-priced” under today’s weak market conditions/sentiments to a certain extent?… What is the market speculation fever fails to materialise to the same level which you have anticipated?
3. The only thing which I can be sure about is that the Singapore Govt and perhaps also the developers of these projects will emerge as winners, when the investors start to buy into these projects.
4. Whether or not, the small investors will be able to eventually make their desired monies or not, on their property investments through such projects, I will be less sure of myself, at this point in time, as I find that the critical mass demand is still quite lacking and elusive presently.
5. The way I see it now is that the various property developers together and a very small select group of property investors are trying very hard to talk up the Singapore property market through the various soft launches and selective media reports despite the huge condo unit oversupply coming in, over the next few years.
6. Not surpisingly, we are presently restricted only to talking about the uppper end of the private condo market at this point in time, rather than the mass market private residential condo market.
7. For your kind update and due considerations, please.
8. Thank you.
regards,
Kenneth KOHHi Mei,
I just wanted to say I know nothing at all about investing in Singapore. So keep talking!!!
This forum is fantastic in that we get people with diverse investing experience willing to post info about their experiences and activities.
You probably know more about investing in singapore than most on the forum. Who knows what we all will be doing or where we will be living in 5 years time.
Keep the information coming.
Cheers
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I’ve been living in Singapore on and off since ’97. While I do think now is as good a time as any to jump in, I’m still cautious and watching what happens. Last quarters property price growth was 1.5%. Hardly going to make 10%.
I’m also amazed that anyone can make the following claim “Vacancy rates are very low now. Rental is high.” There is a glut of apartments on the market and it’s most definitely a renters market. Landlords are desperate to get people in and during our last apartment search, 4 months ago, we had prices tumbling 30% from their advertised prices, and these are apartments we looked at because we felt they were realistic prices for the condos they were in.
The day of the expat on a full expat package is gone. Most foreigners here today are on local or semi-local terms. Gone are the $14k monthly housing allowance for the most part. It’s not easy being a landlord now.
But in saying that, I have a couple of agents looking out the CF+ for me. When they pop up I am happy to do the necesary DD and I’ll be happy to invest if the fundementals are right. But don’t kid yourself that there is a shortage of empty apartments around.
Thanks for the update!!
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NZ Investors & Property Spotters
Renovations & Project Management
Email now to receive info on the lastest deals!Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Originally posted by baloo:There is a glut of apartments on the market and it’s most definitely a renters market. Landlords are desperate to get people in and during our last apartment search, 4 months ago, we had prices tumbling 30% from their advertised prices, and these are apartments we looked at because we felt they were realistic prices for the condos they were in.
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Dear Baloo,1. In general, I agree with most of what you have said in your post, as a local Singaporean.
2. Can I humbly ask for your source of your data and the apartment unit projects which you are referring here in your post.
3. This is for my own self-education, please.
4. What do you say about this morning report in the Singapore Business Times about “specu-investors” making 50% gains on their on-sales for their off-the-plan property purchase in the “Sail” and the Sentosa cove Development Projects? I hope Meilin08 can also further offer her own her views and experiences on this subject for the members’ further discussion.
5. Thank you.
regards,
Kenneth KOHOriginally posted by baloo:The day of the expat on a full expat package is gone. Most foreigners here today are on local or semi-local terms. Gone are the $14k monthly housing allowance for the most part. It’s not easy being a landlord now.
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Dear Baloo,I agree with your views.
Thank you.
regards,
Kenneth KOHOriginally posted by baloo:But in saying that, I have a couple of agents looking out the CF+ for me. When they pop up I am happy to do the necesary DD and I’ll be happy to invest if the fundementals are right.
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Dear Baloo,1. Can I humbly ask what exactly od you mean when you said that the “fundamentals are right?”
2. In your context, how do you define “postive cashflow” for your porperties in Singapore?
3. Looking forward to hearing and learning from you again soon.
4. Thank you.
regards,
Kenneth KOH
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