Business
Why Foreign Investors Buy Properties in Singapore
Singapore is a potential gold mine for business moguls. In Singapore, real estate properties often attract an astonishing level of interest from both local buyers and foreign investors. Property investment is seen as one of the most lucrative opportunities for people who want to multiply their wealth. If you want to see this illustrated in great detail, you only need to cast your mind back to 2018 when UBS bank reported that Singapore’s property market was fairly valued. The island city-state offers competitive property investment packages for business people who desire to make money.
If you have been wondering why many foreigners invest in Singapore’s property market, here are the key reasons.
Market Stability
One of the key factors that entice foreigners to invest in the Lion City’s economy, has to do with the country’s relatively stable property market. Singapore’s government keeps a close eye on the property market of their country. Homeowners and businessmen in the property industry may sometimes be affected by measures put in place by the government. The Singaporean government strives to create a conducive business atmosphere for both property buyers and sellers. The aim is to prevent over-exuberance in the property market and also eliminate the risk of potential property bubbles.
Good political leadership, sound economic policies, and Singapore’s unmatched reputation as a business hub in southeastern Asia — are all positive factors that drive the growth of Singapore’s property market. Investors can feel assured that their property investments are safe and will be profitable in the long run. If you are a foreign investor who needs a Singapore visa, you can find more information on Visa Express website.
Low taxes
Investors hate paying too many taxes. And keeping this fact in mind, the Singaporean government has drastically reduced corporate taxes. For example, apart from Seller’s Stamp Duty (SDD), the government doesn’t impose capital gains taxes on properties. Even with an SSD liability, it’s a small tax applicable for only 3 years. SSD is12% for properties sold during the 1st year, and 8% and 4% for the following two years respectively. When the 3 years are over, no capital gains taxes or inheritance taxes need be paid. Property investors couldn’t have asked for a better tax system.
Diversification & Forex
Singapore serves as a pivot for investors from the Association of Southeast Asian Nations (ASEAN)to create diversity in their portfolios. When investors hold property assets in the island city-state, they can protect part of their portfolio from locally-based political instability. When foreigners invest in Singapore’s property market, they are able to secure their assets. After all, they avoid the risk involved in keeping a single currency.
Availability of Property Agents
Foreign investors also choose Singapore because there are skilled property agents in the country who can help them make better investment decisions. Although the property market in Singapore can be a good mine for foreign investors, you don’t want to rush into investing in it without consulting experts first.
By working with seasoned property agents in Singapore, foreign investors can make multi-million-dollar investments and gain massive returns. If you choose an agent who knows the ins and outs of Singapore’s residential districts and regulations, they will find you good deals. Since there are many agents in the business, you may want to carefully screen an agent before you work with them.
Conclusion
The future is full of uncertainties as a result of the COVID-19 pandemic. Foreign investors are smart business moguls who want to invest in an economy that has minimal risk. Thankfully, Singapore’s economy boasts those attractive qualities. Low taxes, a stable government, and a stable property market — these are all good reasons to convince foreigners to look no further than Singapore’s wealthy economy.
