Why more Singaporeans are buying houses abroad

 

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It is a more enticing option for Singaporeans to invest in properties overseas than to invest in real estate in Singapore.

This is according to Ismail Gafoore, co-founder, Executive Chairman and CEO of property firm PropNex. In an interview with Asia Business First Podcast, Ismail said that in order to invest in a decent property in Singapore, one needs to have a million dollars.

This, he says may not even be enough considering that you have to pay stamp duty of around 16% of the value of the property you are looking to invest in. There is more opportunity for a Singaporean to invest overseas since the Singapore dollar is stronger compared to regional currencies.

According to Mr. Ismail, an average earning Singapore citizen can make a 30% investment and take a 70% loan to buy a property. It is a good investment if they can rent it out for 15 years and pay for the the loan using the rental income.

However, Mr. Ismail says that such investments come with risks as the value of the property could decrease depending on currency swings. He also said that it is important to be knowledgeable about properties and to do a lot of extensive research online before shelling out cash.

He stressed the importance of choosing quality over quantity when making a property investment.