Last modified: Aug 6, 2014 @ 12:33 am

source: http://www.fareast.com.sg/en/Residential/For-Sale/Guide-to-Investing-in-Singapore-Real-Estate/The-Transformation-of-Singapore.aspx

Known for its efficient business environment, competitive tax structures, political stability, transparency, world-class healthcare and education, and lifestyle attractions, Singapore is one of the preferred destination attracting the talented and the wealthy from around the world.

With its track record of sound economic management and implementation of new initiatives, Singapore is expected to enjoy healthy growth for the next few years.

Reputed to be one of the most secure and attractive property investment options in the market today, Singapore offers attractive capital gains and yield potentials over the medium and long term. The country’s sound political and legal systems also make Singapore’s real estate a good investment asset for wealth preservation and accumulation.

Global investors leveraging on Asia’s growth tend to secure a stake or foothold in Singapore, either in the form of a regional office or a quality real estate asset to balance their portfolio of high risk assets in the emerging markets of Asia.

As wealth accumulates in Asia’s emerging markets such as India and China, Singapore has become the favoured second home for new wealthy individuals. High net-worth individuals from around the globe, especially from Asia’s emerging powerhouses, are sending their children to study in Singapore and have invested in real estate in the country. Global talents are also making Singapore their home, attracted by the wealth of opportunities and quality of life the city-state offers.

Investors in Singapore’s real estate are leveraging on Singapore’s transformation and growth into a truly global city, and its track record of good economic, social and political management. Singapore’s real estate is a gem of an investment, a high-quality asset with good upside potential for the strategic investor.

The Attractiveness of Singapore as a Great Place to Live, Work and Play in:

• Socio-political stability which provides a safe and orderly environment.
• Clean and green environment.
• Ease of access to major cities of Asia.
• Good connectivity and efficient transportation infrastructure.
• Immigration policy that welcomes talents and investors.
• A centre of educational excellence.
• Premier healthcare services.
• Efficient legal infrastructure and judiciary system.
• Asia’s banking hub with tight banking secrecy laws.
• No tax on interest and foreign-earned income.
• No estate duties or inheritance tax.
• Comparatively low personal income tax structure.
• Comparatively low corporate tax rate of 17% per annum.

 

Factors Influencing Foreign Purchase

A truly cosmopolitan city, Singapore is a country where more than a million talented foreigners call home. With its multi-racial, multi-cultural and multi-lingual heritage, Singapore is where a confluence of values, cultures and lifestyles co-exist harmoniously. It is an exciting city-state where foreigners find it easy to settle in. Key reasons foreigners are attracted to invest in or buy properties in Singapore are as follows:

Favourable Property Purchase and Ownership Conditions:

• Clear foreign ownership laws.
• Foreigners eligible to own condominiums and apartments.
• No currency control.
• No capital gains tax.
• No withholding tax for disposal of properties.
• Foreigners are eligible for Singapore dollar mortgage loan.
• Loan quantum can be up to 70% of the purchase price.
• Relatively low mortgage interest rate.
• Active secondary market for easy exit of property investments.
• The rental yield is generally higher than mortgage interest rate.
• Interest on mortgage payment is tax deductible when the property is rented out.
• Security of property rights.
• Laws and regulations that protect home buyers.