Where are the best places for Singaporeans to buy international property in the second half of 2018?
There are many places all over the world where smart investors can put in their hard-earned money. It’s all a matter of choosing the countries where returns would be profitable. Singaporean nationals can check out this list of countries for investment properties.
This Southeast Asian country’s economy has boomed along with its tourism industry. The capital city of Bangkok was the most visited urban hub in 2017 and worth the attention of prospective property investors. Majority of foreigners set their sights on the condo market because units are cheaper and more manageable compared to detached abodes. Thailand has a gross rental yield of 5.14%.
This is another East Asian nation that grows rapidly with gross rental yield of 6.13%. Foreign residential property buyers can purchase and own condominiums under their names. Like Thailand, a maximum of 40 percent floor area in a single structure can be foreign-owned.
Japan has some of the best winter sports destinations worldwide with around 500 skiing and snowboarding ski hills as well as mega resorts. The country will also host the 2020 Summer Olympics in Tokyo. Owning a ski holiday property in Japan can be a practical decision as many Japanese Prefectures currently host ski resorts. Japan’s gross rental yield is currently fixed at 2.66%.
The Malaysian Government signed a Memorandum of Understanding last July 2016 to construct a High-Speed Rail scheduled for completion in 2026. Malaysia’s Iskandar Special Economic Zone can also accommodate 700,000 individuals once finished. Besides, Malaysia boasts of one of the cheapest real properties in the whole of Asia with prices increasing despite slow global economic growth. The property market guaranteed stable rental income for the last two years at four up to five percent annually. Malaysia owns a rental yield of 3.72%.
For Housing and Development Board (HDB) apartments or flats, the best options would be Bukit Panjang, Sengkang, and Bedok New Town. Upscale bungalows are meant for high-income Singaporeans. Some 2,500 Good Class Bungalows are spread across 39 locations identified by the Urban Redevelopment Authority. The minimum lot area must not be less than 1,400 square metres with a price of around S$30 million depending on dimensions and facilities.
Sentosa Cove, a residential enclave at the eastern portion of well-known Sentosa Island, is a destination for the wealthy. Majority of the residences here have swimming pools tennis courts, fitness gyms, and fine dining restaurants. For condo units, prime areas would be Orchard Road, Twentyone Angulia Park, Nassim Road, Ardmore Park, and Sentosa Island. However, Singapore is ranked number 7 out of 10 in rental yield with 2.5%.
- Sri Lanka
The country’s economy flourished while the tourism sector boomed mainly because of the People’s Republic of China multi-billion investments in the Sri Lankan Port since 2010. China plans to invest another $1 billion in the construction of three 60-storey buildings near the harbour. There has been extensive demand for hotel accommodations and apartments. Due to this heightened demand in buying, constructing, and renting, Sri Lanka continues to entice numerous overseas investors who realize the prospects of a lucrative enterprise. Annual gross rental yield in this country is less than 3%.
The Association of Foreign Investors in Real Estate ranked Australia as the 5th best country for steady and secure real property investment in 2018. In fact, it has stayed away from recession during the last 25 years. The growth and stability are too tempting an opportunity to ignore. Even as the many countries faced considerable losses with regards to total property value, the Aussie market remained resilient. Melbourne and Sydney are acknowledged as the primary cities for investment properties. Australia’s yearly rental yield is 2.5%.
- United States
Coastal properties in the United States are deemed as highly profitable. These states include Florida, Rhode Island, New York, New Jersey, Maine, and Connecticut. The populated beachfronts attract tourists and residents who prefer to stay near the beach making rental properties valuable investments. There’s a 12% Value Added Tax on real property sales in the USA for individuals selling, leasing, and developing real estate as well as those engaged in property brokerage enterprise. Average gross rental yield in the United States stands at only 2.91%.
- United Kingdom
The United Kingdom is an ideal investment haven due to secure returns. Take the case of Manchester which outperformed London with its growth in property prices of around 8.8 percent. Another city that investors are interested in is Liverpool and Nottingham where people can make money by purchasing flats in these urban centres. Average rental yield in these cities was pegged at 6.2%.
Panama manifested strength considering that markets in the region like Argentina, Colombia, and Venezuela continue to struggle. Resale transactions in recent years gave investors the chance to acquire highly undervalued residential lots. The country is an agricultural hub and suitable for organic farms. Panama has unique property ownership laws. These include the Titled Panama Property similar to “Fee Simple” titles of the United States and Possession Rights Property of North America. Gross rental yield in Panama is 5.75%.
Choosing investment property entails not only a close look at market prices but understanding the dynamics and location of properties where you intend to make a purchase.