Why to Buy Property in Singapore?

Singapore is the home of heavily diversified culture, ever growing economy, modern infrastructures, sumptuous food and world-class tourist attractions. Tagged as one of the finest countries in the world, even the real estate industry of Singapore had become a major fascination. 

Singapore holds a huge number of international population. The rental market is very tempting as quick money possibly flow in once you purchase a property and have it leased to someone else. Development level puts Singapore at a high rock. It offers a fulfilling life for those who plan to buy properties for personal use. World-class education, outstanding healthcare, state-of-art public infrastructure and very high-level of security in Singapore are indeed promising for foreign investors.

The quality of real estate developments on this country is impeccable, similar to major key cities in the world. Buildings, old or new, are well maintained and there are strict guidelines enforced by the government that when ignored will result to hefty penalties. Every property is well inspected, provides a concrete plan for major disasters, safety measures are carefully planned out, and there is a good mix of ethnic race to public, private and commercial properties.

There’s no denying that Singapore is a land-scarce country. Compare to other countries in South East Asia, Singapore is categorically small at 719.1 square kilometers. While this might be a major problem for the government, because they need to provide sufficient housing for its growing number of residents, this in turn makes the demand for properties at an all-time high. The lessening number of viable lands and non-stop population makes properties in Singapore highly sought-after just like gold.

But why buy property in Singapore when rumor has it that there’s an oversupply of residential units? Simple, the continues flock of immigrants in the country counteracts the decreasing number of local property demands. More and more foreigners want to take a slice on Singapore’s growing real estate business. Also, the expansion of financial districts is projected to attract hundreds of additional work force, thus increasing the need of housing.

Leasing is a big business in Singapore, especially long term renting of more than six months. You can rent out your entire property or extra rooms of your condo unit. Even flats can be rented out to foreigners or locals. In Singapore, the rental rate is higher than the mortgage interest rate. Rental income is a passive, substantial and sustainable form of earnings especially if your property is situated on prime location.

Singapore has been consistently rated as one of the world’s most expensive city to live in. The exuberantly prized apartments, high petrol, stringent requirements of owning a car and efficient yet expensive transport system, living in Singapore can easily drain out your monthly paychecks.

So why buy property in Singapore if it’s expensive to live there? The reason is because taxes are way more reasonable than in any parts of the world. For those who spend less than 183 days a year in the territory, you will pay 0% tax. And the highest tax rate that the government can ever imposed is capped at 20%. So if you’re a foreigner thinking of buying a second home, either for business or pleasure purposes, getting a property in Singapore will save you from hefty tax rates. You don’t even have to be there 365 days a year, you can hire someone to look after your property but still own a piece of city-state paradise.

Included on the reasons to buy property in Singapore is that aside from various property selections, the real estate tenure is similarly flexible. There are properties with 30-year lease, 60-year, 103-year and the most common amongst all the 999-year lease. Freehold properties are still preferred by many locals as well as the 999-year lease which is almost the same as freehold but technically different.

Singapore is also reliable in terms of projects being completed on time, as construction delays will be met with a fine to the developer from the Singapore government. Making an investment in Singapore property sector is worthwhile and very rewarding as well. Investors willing to gain higher yields in their investments should not hesitate to make this profitable venture.

This guest post has been written by Gunjan Johar.