Buying an overseas second property in Singapore could be an excellent investment for the long term, especially if foreign property is more affordable than at home. However before making such decisions, it’s best to go on a scouting trip to check out any potential properties and their surrounding areas unless you’ve been a frequent visitor of the region considering buying; take some time to look around when organizing viewing trips, prepare questions and assess various options available.
For investors looking to make money in real estate, there are great opportunities in overseas markets if you wait long enough. Buying overseas second property in Singapore has become an ideal option to diversify assets because their prices have reached their plateau and will eventually see a drop-off.
Below are some of the things to look for when investing in second property overseas:
- Market conditions.
Markets are always in motion. The question is where should you be looking to buy? If the market has been up until now, what will happen next? Will it continue moving higher or could prices drop suddenly before they go back down again.
Market fluctuations aren’t something new – every investor knows that markets rise and fall but does not know when exactly one might occur relative to their investments.
Do you know when your target market will be at their peak? If the answer is yes (or if this has been a question for another purchase), make sure to research who might buy before buying property.
- Supply and demand of real estate.
In expanding markets, supply takes time to catch up with demand. The result is a series of peaks and valleys in pricing even if the overall trend may be upwards for that product or service being offered by businesses such as developers who build condos when they see an opportunity once all those preconstruction homes are delivered.
This creates buying opportunities because there was too much inventory causing cyclical dips from the soft property market. Prices go down in areas where investment might make sense due solely on location and not because of other real estate buying considerations.
- How developed is the area where you intend to buy property?
New infrastructure projects are an indication of the potential for growth in a certain area. When new airports, train stations or highways are planned there is often increased demand for real estate as it becomes easier and better to access markets that were previously off-limits because they didn’t have easy transportation options available at their disposal – this can translate into both value spikes as well as expanding rental markets.
- Currency diversification.
One thing to consider when investing in real estate overseas is that you can’t time the currency. You should think of this as a long-term investment and not try day trading for short term profits, which will lead your investments down an unnecessary path with little reward without considering property values.
When shopping around for properties from all over the UK or other parts on earth, it’s best just look at what they have – don’t worry too much about fluctuations because no one knows where any given currency may go next.