Time to invest in property overseas?

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01-07-13, 19:27
sunnycarp

Time to invest in property overseas?

With so many new regulations, the most recent being the new MAS rulings:

1. Standardization of Total Debt Servicing Ratio (TDSR)
2. Using Income-Weighted Average Age to Determine Loan Tenure
3. Haircut of 30% for all variable income
4. Borrowers to be Mortgagors / Guarantors to be Joint-Borrowers
5. Raising the interest rate benchmark for stress testing
6. Greater stringency in the application process

Not to mention the existing Additional Buyer's Stamp Duty (ABSD) and Seller's Stamp Duty (SSD), and low loan quantum for 2nd property (only 50% loan) and above, is it perhaps time to buy overseas?

Any bros here bought Iskandar properties? The recent Afiniti by Capitaland launch was sold out in a couple of hours. That's like wow! Recently Medini property is very in demand.

Or how about London property investment? Apparently Singaporeans make up 22% of the buyers for London property, second only to UK citizens themselves. They offer deferred payment scheme and high loan quantum up to 70%, plus property management firm will manage the property on buyer's behalf.

Wonder with all these measures, where will the all the Singapore funds flow to..
01-07-13, 19:43
indomie

I invest in sydney.... I don't like melbourne (oversupply of new apartments).
01-07-13, 20:56
tradert

Those who were priced out of the SG market or seeking an alternative, are already invested in Iskandar in 2010/2011.

Medini is leasehold title to the buyers, though it's designated as the business district of Nusajaya, which is the crown jewel of Iskandar.

Which areas are you considering?
02-07-13, 00:09
lot286

get involve quickly in Iskandar before the M'sians start doing the curbs on foreigners.

:banghead: :banghead: :banghead:
02-07-13, 08:34
leesg123

vested in KLCC condo since 2011. rental yield abt 6%, capital appreciation abt 20% to date.
02-07-13, 08:35
leesg123

Quote:

Originally Posted by lot286

get involve quickly in Iskandar before the M'sians start doing the curbs on foreigners.

:banghead: :banghead: :banghead:

on the contrary, msia is quite lax on iskandar as the minimum purchase price of rm500k for foreigners is waived.
02-07-13, 08:37
lajia

Then u better think twice, if they curb on foreigners, then price will down and u sell to who??

Quote:

Originally Posted by lot286

get involve quickly in Iskandar before the M'sians start doing the curbs on foreigners.

:banghead: :banghead: :banghead:
02-07-13, 08:38
lajia

You pay cash for full??

Quote:

Originally Posted by leesg123

vested in KLCC condo since 2011. rental yield abt 6%, capital appreciation abt 20% to date.
02-07-13, 08:45
Ringo33

Quote:

Originally Posted by lot286

get involve quickly in Iskandar before the M'sians start doing the curbs on foreigners.

:banghead: :banghead: :banghead:

Why would they want to kill the cow that produces milk.
02-07-13, 10:21
leesg123

Quote:

Originally Posted by Ringo33

Why would they want to kill the cow that produces milk.

Because Malaysia Boleh bro!!!
02-07-13, 10:23
leesg123

Quote:

Originally Posted by lajia

You pay cash for full??

Pay cash in full will save some money on the legal. no, i took loan, fully offset the interest.
04-07-13, 15:26
sunnycarp

Recently there's a big surge of people going into London, as this article says:
http://sbr.com.sg/commercial-propert...don-properties
11-07-13, 18:33
penguin

Guys, what do you think about investing in Bangkok properties? Was looking near Huay Kwang station. It's at the main entertainment area. Is there anything in particular to highlight about investing in Bangkok?
11-07-13, 19:34
BV

Quote:

Originally Posted by penguin

Guys, what do you think about investing in Bangkok properties? Was looking near Huay Kwang station. It's at the main entertainment area. Is there anything in particular to highlight about investing in Bangkok?

Just got a unit in BKK.

Foreigners can only own up to 49% of each condo project (by floor area). You need to state that the funds you transfer to Thailand is earmarked for the purchase of a condo and get the bank to give you a letter to that effect. Your agent or lawyer can probably assist you in that.

Some advice, if you are looking to buy a new unit, it may pay off to do some research to see if there are any cheaper units in the same development available in the subsale/resale market. I was interested in a project marketed here in Singapore, then went to Bangkok for my own search and found an equivalent unit in the SAME condo project in the subsale market which was around 30% cheaper. It was put up by a seller who bought it in the 1st phase of the project launch. Obviously I went for the cheaper unit instead, as it is the same project after all.

Loan interest rates are relatively high for Thailand properties, THB financing interest rates are around 5% (plus or minus), so you may want to consider paying full in cash or an alternative loan arrangement. :2cents:
11-07-13, 19:53
minority

Quote:

Originally Posted by Ringo33

Why would they want to kill the cow that produces milk.

Right!!! They always wait for more cows then kill all at 1 go!
11-07-13, 20:10
penguin

Quote:

Originally Posted by BV

Just got a unit in BKK.

Foreigners can only own up to 49% of each condo project (by floor area). You need to state that the funds you transfer to Thailand is earmarked for the purchase of a condo and get the bank to give you a letter to that effect. Your agent or lawyer can probably assist you in that.

Some advice, if you are looking to buy a new unit, it may pay off to do some research to see if there are any cheaper units in the same development available in the subsale/resale market. I was interested in a project marketed here in Singapore, then went to Bangkok for my own search and found an equivalent unit in the SAME condo project in the subsale market which was around 30% cheaper. It was put up by a seller who bought it in the 1st phase of the project launch. Obviously I went for the cheaper unit instead, as it is the same project after all.

Loan interest rates are relatively high for Thailand properties, THB financing interest rates are around 5% (plus or minus), so you may want to consider paying full in cash or an alternative loan arrangement. :2cents:

Congrats on ur unit there. So there are no restrictions on Singaporeans 100% owning 2-3 units in bkk right? May I know if you got a lawyer from Bangkok, or Singapore to do the legal works? And yes, definitely not buying a bbk unit marketed in Singapore. I have friends living in bkk, that's why have been going round to view units. So far, Im keen on getting 2-bedders, and I calculated the rental yield is around 6%. Is that the average yield there?

I have a concern though. The condo Im looking at is just beside a huge massage parlour. Would that cause any future problems in renting out? Apart from this, the location is very good.
11-07-13, 20:46
BV

Quote:

Originally Posted by penguin

Congrats on ur unit there. So there are no restrictions on Singaporeans 100% owning 2-3 units in bkk right? May I know if you got a lawyer from Bangkok, or Singapore to do the legal works? And yes, definitely not buying a bbk unit marketed in Singapore. I have friends living in bkk, that's why have been going round to view units. So far, Im keen on getting 2-bedders, and I calculated the rental yield is around 6%. Is that the average yield there?

I have a concern though. The condo Im looking at is just beside a huge massage parlour. Would that cause any future problems in renting out? Apart from this, the location is very good.

No, I don't believe that there are any restrictions on a foreigner owning multiple condo units there, as long as the foreigner quota for each condo project is met. It is a different story for landed housing there though. You can search on the internet for the specifics on this, as well as the taxation with regard to property ownership and transactions.

I chose not to use a lawyer in the end, after doing research and verification of the seller and agent's credentials. For peace of mind, you might decide on engaging a lawyer for your purchase. It is up to you. Lawyer fees are typically THB30,000 to THB50,000, depending on your requirements and whether you are taking a bank loan, etc.

As for the locations of the condos, again it is dependent on what you are looking for. Different areas have different profiles of residents and crowds. For example, the area around Nana BTS station is dominated by Indians and Middle-Easterners, with plenty of Caucasian tourists around. The Thong Lo and Ekkamai area is favoured by the Japanese. The CBD area will probably cater to expats who are working in the vicinity.

As I am buying for investment, I chose a project that is very close to the BTS and amenities such as supermarkets and malls. Although cars are relatively affordable in BKK, the traffic there can be quite terrible sometimes and many of the prospective tenants may choose public transport instead. Gross yields can be expected to be in the 6-8% range. However, do note that a significant portion of this can be taken up by agent commissions (1 month commission for a year lease) and property management services if you require such services.

Personally, I will not want to stay near a massage parlour or other seedy establishments, but for investment, it depends on the profile of your prospective tenant. A single male expat may have no qualms about such an environment or even prefer it, but a couple or family will probably choose a less 'complicated' area. No definites here I think.
11-07-13, 23:48
VS

Any advice on investing in Penang's condo? Does the rule that foreigners need to buy above RM1M still stands in Penang?
12-07-13, 00:58
minority

BKK i would think the CBD area are better. sukumvit is also too jam. Silom is not bad area i feel. but not sure hows the resale market there. if its easy to move a resale unit.
12-07-13, 05:49
wirehtc

Do take note some areas in Bangkok are prone to flood, which will get worse due to climate change.
12-07-13, 18:09
dare2

Quote:

Originally Posted by VS

Any advice on investing in Penang's condo? Does the rule that foreigners need to buy above RM1M still stands in Penang?

Yes 1M for condos and 2M for landed.....
14-07-13, 17:19
VS

Quote:

Originally Posted by dare2

Yes 1M for condos and 2M for landed.....

Thank you. Maybe I should apply for the MM2H?
14-07-13, 18:47
wirehtc

Quote:

Originally Posted by VS

Thank you. Maybe I should apply for the MM2H?

U r still a foreigner.
14-07-13, 19:56
mummy

Quote:

Originally Posted by VS

Thank you. Maybe I should apply for the MM2H?

Yes, i read somewhere that under MM2H, u can buy min RM$500000 houses but max 2 and cannot sell for 3 yrs.
14-07-13, 20:19
VS

Quote:

Originally Posted by mummy

Yes, i read somewhere that under MM2H, u can buy min RM$500000 houses but max 2 and cannot sell for 3 yrs.

Thank you. I am considering condo in Penang or Iskandar, for investment.
14-07-13, 21:26
mummy

Quote:

Originally Posted by VS

Thank you. I am considering condo in Penang or Iskandar, for investment.

U r welcomed...i believe there r many like u but rental is not as good as in Singapore. Do be prepared for that. I am also investing in a landed in Iskandar. Best if can use for own stay if cannot rent out.
14-07-13, 22:58
leesg123

Quote:

Originally Posted by VS

Thank you. I am considering condo in Penang or Iskandar, for investment.

what kind of investment? Rental? Capital gain? or just anything that is cheap?