Do your homework before buying overseas property: Experts

A strengthening Singapore dollar against regional currencies has made overseas properties more attractive for local investors. However, due to the year-end holiday season, market watchers said the full impact will not be seen until the new year.

For now, popular investment options for Singaporeans – such as the Iskandar development in Malaysia – have not seen a marked increase in sales. This could also be partly due to an expected increase in supply, as an additional 200,000 private homes will be built in Iskandar over the next five years.

When investing overseas, market watchers noted that price should not be the only factor to consider.

Mr Johnny Chng, head of international projects at OrangeTee.com, said there are a few factors investors have to consider, particularly if they are looking at overseas property.

“Investors have to first do their homework. First and foremost, they have to ensure that they are buying something which legally they are eligible to buy. They also have to understand that every country has different rules and regulations. There may be some restrictions,” he said.

Mr Chng added: “Furthermore, the procedure and process of acquiring the property may be very different from Singapore. Currency play and the rental yield (are factors to consider as well).”

Source : Channel NewsAsia – 20 Dec 2014

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