5 Misconceptions About Overseas Property Investment

Singaporeans tend to suffer from “Home Country Bias” syndrome.

That means having the often false assumption that made-in-Singapore products/services are safer and more superior to the ones from other countries.

The same goes for property investment.

Among locals, many think that Singapore properties are better investments than overseas properties.

In most cases, if you’re judging an investment from potential returns, that is not the case.

So here are 5 misconceptions many Singaporeans have towards overseas property investment.

After you read this, you’ll realize that the common saying “the world is your oyster” holds true especially for property investment!

Misconception #1 – It’s Expensive


When you think of posh apartments and condos in renowned cities like London and Melbourne, what’s the perception that comes to mind?

For most Singaporeans, they probably think: Expensive.

In fact, you may be surprised to know that when you compare PSF (per square feet) price, property in those so-called premium locations can actually cost less than half compared to a Singapore condo!

The traditional “west is always more expensive” mentality is outdated and passé.

In modern times, Singapore property, especially with the implementation of the recent ABSD (Additional Buyer Stamp Duty) cooling measure, is usually a lot more damaging on your bank account.

Which means if you choose to purchase the right overseas property, you can look forward to a much healthier return compared to a local property.

Misconception #2 – You Need To Fly Overseas To Handle The Transaction/Manage Your Property


Simply put, you don’t. Everything related to your purchase can be handled in the comfort of your own home.

Thanks to technology, our world is borderless. Want to check out the premises before committing? No problem. A simple video call bypasses the geographical barrier.

Not sure how to navigate overseas property regulations? Let us help. One Global Property Services’ Singapore team has the resources and expertise you need to handle all legal issues.

Worried about security when you’re not around? Piece of cake. We work with top security partners to ensure the safety of your overseas home, and we’ll be glad to extend this connection to you.

Many of our clients have never personally set foot in the properties they buy. They don’t need to, not if they’re buying for investment purposes. You don’t need to as well!

Misconception #3 – Overseas Developers Don’t Welcome Foreign Buyers


Do you know that many western countries are actively encouraging Asian investment in their economies?

From commercial to industrial to education, western countries are opening the doors for a massive Asian cash injection.

Same goes for property. Some of the developers we work with actually offer Asian buyers a better rate (discount) than their own citizens!

So why the love for Asians in particular? Because affluent Asian countries have the means to revive flagging western economies through heavy investments.

That’s why in contrary to what many believe, overseas developers are welcoming us with open arms!

Misconception #4 – It’s Risky


Investing in property carries a certain element of risk. That can’t be denied.

Forces beyond our control or so-called “acts of God”, such as natural disasters and overnight market changes, can negatively impact the value of your property.

But that holds true not just for overseas property, but Singapore property as well. That’s why assuming that overseas property investment is riskier, is not a fair opinion.

As long as due diligence is done and fundamental property investment concepts are applied, you can easily mitigate risk.

That’s exactly what we, One Global Property Services, do for our clients. Painstaking research is undertaken before we showcase a particular property to our network of buyers/investors.

Misconception #5 – You Can’t Make Returns From Overseas Property


This can’t be further from the truth! The right overseas property, with high gain potential and strategic location, can fetch investors sky-high ROI.

You can choose to make returns from rental yield. Property located near business districts, entertainment outlets and schools typically have overwhelming rental demand.

You can also decide to make returns from capital gain. The right timing here is key. Purchase at an optimal time, before prices increase, and you can stand to earn a handsome profit when prices go up.

This golden window of opportunity usually occurs at the new launch stage. Buy, hold, wait for TOP (Temporary Occupation Permit) and sell for a tidy sum.

The returns potential of overseas property is usually higher than Singapore, because of staggered initial downpayment. 

We hope that you gained some good insights into overseas property investment from this article.

 

Do note that above all else, selecting the right property to purchase is critical.

That’s why in order to help our clients achieve their property objectives, our consultants go the extra mile to understand specific requirements and match them accordingly to the right property.

We believe in “sniper-like precision” when it comes to overseas property. Select the right property. Do our research. Purchase at the right time. It’s simple. It’s effective.

So if you like to find out more about overseas property investment, and which is the right overseas property for you, feel free to drop us a message below.

We’ll be more than happy to share our years of experience and expertise in overseas property markets like Australia, UK, Thailand and many more.

Talk to you soon!

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