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Foreigners buying property in Singapore

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kk_lon
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Foreigners buying property in Singapore

Postby kk_lon » Fri, 01 Aug 2014 10:09 pm

Is it worth buying property in SG as a foreigner? Even with the 15% ABSD?

Pretty steep I reckon but do property values have robust appreciation in value?

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Postby sundaymorningstaple » Fri, 01 Aug 2014 10:37 pm

Not in the last 6 months. In fact, values are going down thanks to the ABSD and the fact that the market has topped out I believe. However, i could be wrong as I've seen it go way, way up, tank, rebound several times over the past 30+ years. However, I'd wait another year before buying as I don't think we've seen the bottom yet, truth be known.

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Postby kk_lon » Fri, 01 Aug 2014 10:43 pm

Thanks. That's what the general info available on the net says as well but I'm just having difficulty trying to reconcile with the 15% ABSD. That is very steep.

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Postby singapore eagle » Fri, 01 Aug 2014 10:54 pm

Easy to reconcile. The government is trying to bring down prices and stamp duty is one of the tools it is using.

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kk_lon
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Postby kk_lon » Fri, 01 Aug 2014 10:57 pm

no hope of it going down then...

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Postby singapore eagle » Fri, 01 Aug 2014 11:10 pm

Not tomorrow. But in 6-12 months time, who knows.

Nobody can really be sure how quickly prices are going to fall or when the government will get comfortable with market prices.

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Postby Strong Eagle » Fri, 01 Aug 2014 11:12 pm

kk_lon wrote:no hope of it going down then...


I doubt it. The government is probably already too late in trying to control prices. The issue is that far too many Singaporeans cannot afford to purchase anything because of low salaries and sky high real estate prices.

There was an article a year or so ago... a tale of two bus drivers... one Singaporean, one who commuted in from JB daily to drive. The Singaporean lamented that no matter how much he saved to buy a flat, the increasing property values meant he could never get enough of a down payment, nor afford the monthly mortgage payments.

His bus driving friend from JB however, made enough money to purchase a house, which would be paid off before he retired from bus driving. The point of the article was that Singaporeans were worse off than foreigners working in Singapore when it came to affordable housing.

My view is that the government made a serious mistake when they assumed that if they restricted foreign ownership to certain types of properties, the other properties (HDB, landed properties, shop houses) would be insulated from the effects of speculation. Such has proven to not be the case, and the ABSD is but one new tools to try and control prices without creating a financial mess if prices drop too far.

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Re: Foreigners buying property in SG

Postby taxico » Fri, 01 Aug 2014 11:44 pm

kk_lon wrote:Is it worth buying property in SG as a foreigner? Even with the 15% ABSD?

Pretty steep I reckon but do property values have robust appreciation in value?


depends on why you're buying and how much money you can use/have to borrow + how long you will be staying here (and how confident you are of that duration)...

uncertain future? don't do it.

minimum down payment + scraping by to make repayments for 30 years? don't do it.

for people here for the long haul (say, 10-15 years) it may make sense to buy even with 15% absd because your rental (and revoked deposits and lost time/inconvenience for moving around regularly) for the next few years will eventually add up to be more than the hit you take when the market dips and eventual ABSD removal... and the eventual rise of prices again due to the nature of singapore's property market.

in the long run, you might not make much money when you do sell it off but at least you'll be living in your own home and can do whatever you want to it.

naturally, you need to bear in mind what happens if you have to suddenly leave singapore... if you can afford it and find a place that suits you and your family (by which i mean, not financially), i say bargain hard and go for it if the sums work.

(because singapore landlords and rental homes can be a real pain)
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Postby Nicole80 » Sat, 02 Aug 2014 2:13 pm

I think it is worth buying if the location is right. The price seems to be more or less stabilized. But I know a lot of people are still waiting till next year with the hope that the property price will drop.

But it is hard to predict. Because it is unnecessarily will drop. Once the bank loan requirement is adjusted, the property price will get back to the stable price ( if not getting higher).

That's what happened in the beginning of the year of 2010. People was waiting for price to drop in d year of 2009, but price bomb in d beginning of the year of 2010.

So , I think as long as the price is reasonable, property investment is worth it.

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Postby sundaymorningstaple » Sat, 02 Aug 2014 3:34 pm

You obviously, don't know the measures that have been put into place, nor have you been checking the property market for the last 3 quarters. Might just keep you from continuing to put you foot into your mouth. If you are going to dispense knowledge here as a newbie and it flies in the face of most here, a link is a sure way to gain respect. ;-)

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Postby PNGMK » Sat, 02 Aug 2014 3:58 pm

Nicole80 wrote:I think it is worth buying if the location is right. The price seems to be more or less stabilized. But I know a lot of people are still waiting till next year with the hope that the property price will drop.

But it is hard to predict. Because it is unnecessarily will drop. Once the bank loan requirement is adjusted, the property price will get back to the stable price ( if not getting higher).

That's what happened in the beginning of the year of 2010. People was waiting for price to drop in d year of 2009, but price bomb in d beginning of the year of 2010.

So , I think as long as the price is reasonable, property investment is worth it.


Bwaa haaa haaa. The boat has sailed. OP - eventually the gahmen will remove some of the barriers... then is the time to buy.

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Re: Foreigners buying property in Singapore

Postby kaseyma » Sat, 02 Aug 2014 5:21 pm

kk_lon wrote:Is it worth buying property in SG as a foreigner? Even with the 15% ABSD?

Pretty steep I reckon but do property values have robust appreciation in value?

Does this mean that you are not a citizen of the USA nor a citizen or Permanent Resident of Switzerland, Liechtenstein, Norway or Iceland?

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Postby JR8 » Sat, 02 Aug 2014 6:03 pm

singapore eagle wrote:Easy to reconcile. The government is trying to bring down prices and stamp duty is one of the tools it is using.


I think it's fair to say that the SGn government want SG property to be built for SGns to buy and benefit from. They don't want it to be being used as a regional investment safe-haven vehicle. If that's correct, it sounds reasonable to me.

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Postby PNGMK » Sat, 02 Aug 2014 7:36 pm

JR8 wrote:
singapore eagle wrote:Easy to reconcile. The government is trying to bring down prices and stamp duty is one of the tools it is using.


I think it's fair to say that the SGn government want SG property to be built for SGns to buy and benefit from. They don't want it to be being used as a regional investment safe-haven vehicle. If that's correct, it sounds reasonable to me.


Not quite... they want SG property supported by foreign investment but don't want to take the inevitable hit.

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Postby Strong Eagle » Sat, 02 Aug 2014 9:32 pm

PNGMK wrote:Not quite... they want SG property supported by foreign investment but don't want to take the inevitable hit.


+1

And they thought they were getting away with it until HDB prices started to go through the roof.


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