Investing into real estates has always been lucrative and attractive business option, but traditionally accompanied by high risks and dependence of market fluctuations. This particularly goes for people investing into a foreign country and real estates over there. Also, there’s a big difference in a general approach depending on whether you are planning to buy a real estate and keep it as you own property to pass it onto your offspring or you are aiming real estate to rent it and keep it as a constant income source. Either way, Singapore is rather attractive destination for real estate investment due to several reasons.
Keep up with an average price per square meter
To get the financial framework, follow updates of the average prices per square meter in various areas of Singapore. Your primary investment will be determined by the basic cost of a given residence plus several additional costs, fees, and taxes. Rental yield is currently somewhat around 2.9%, and the average price per square meter varies around 15 thousand Singapore dollars. Once you get the idea of the entry costs you are faced with, check the renting prices and compare these two. You are aiming at the region where primary investment is affordable to you, and it will pay off annually by renting purchased real estate at the locally average prices and still make a profit.
Taxes and market predictions
Investment into real estates is a long-term investment, and it is susceptible to significant market fluctuations. Thus, do not narrow your calculations down to current prices and percentages, but go searching a bit about economic predictions. Real estate values in Singapore are declining over the past few years, but all financial statistics indicate that overall values will increase by 1.72% annually over the next five years. When it comes to taxes, Singapore is a highly attractive destination for investors. 15% of fixed tax for a wide range of incomes is a common thing over there, but additional 10 dollars are charged to foreign investors.
Overall prices are determined by location
Among all other aspect influencing overall prices of various real estates at Singapore’s market, location is essential. Although Singapore isn’t a big country, prices vary significantly depending on the area you are targeting, thus make sure to get the precise information about local prices. Bukit Panjang remains the most expensive, but also the most profitable area.