Debunking the Myth – Can Singaporeans buy Overseas Property?
I have come across this question several times during my time as a real estate consultant. I would like to take this opportunity to clarify that there is no restrictions for Singaporeans to own or invest in Overseas Property. Overseas Property is treated like Private Property in Singapore apart from that Overseas Property are not counted as part of “additional property” during the computation of Additional Buyer Stamp Duty.
For example, if you (Singapore Citizen) own 2 property in Singapore and would like to go for a 3rd property in Singapore. You are liable to pay the standard 3% (less off S$5,400) + 10% Additional Buyer Stamp Duty. But instead if you opt to invest in Overseas Property, you are not liable to pay any ABSD, instead you are only liable to pay the taxes (if applicable) in the respective country. The reverse is true as well. Lets say, if you own a property in Singapore as well as an Overseas Property, and you are intending to buy another property in Singapore, you are only liable to pay the standard 3% (less off S$5,400) + 7% Additional Buyer Stamp Duty = treated as 2nd property.
However, do take note for those who own a HDB, as Overseas Property is treated as Private Property, you will need to fulfill the Minimum MOP Period (5 years) before you can invest in Overseas Property.
There are many reasons why Singaporeans are looking to invest in Overseas Property. One of the most notable reasons is because of the potential return that comes with it. Imagine if you have invested in Singapore Property 20-30 years back where Singapore is still an emerging country but growing fast. You would have earned a very decent rental income and if you have sold off which most people would have, you would have probably make a few times of what you have invested initially. This is the same opportunity that is happening to some of neighbouring countries like Bangkok, Cambodia and Vietnam where they are experiencing very high growth.
Nevertheless, there are also inherent risks that comes with Investing in Overseas Property and if you are looking to invest in Overseas Property – it would be good to take some time to read our article on “Should you be investing in Overseas Property“ where we will be sharing some of the factors/things you should look out for.
Hope you enjoy reading – “Should you be looking at Overseas Property”. You might also be interested to read more about the Best Selling Overseas Projects in 2017
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Disclaimer: This article is meant for research/ information and educational purposes only. All information, especially property ownership laws, are subjected to changes and no responsibility shall be held on the accuracy. All sorts of property investments can be risky and investors are expected to perform their own due diligence before committing into any purchase.