Property investing can be a highly profitable way to increase your annual revenue and assets, but it takes practice and research. Singapore is known for having one of the best real estate markets in the world. It offers competitive pricing and lower interest rates compared to other markets. Investing in property is a good business decision and Singapore may just be the ideal place for you to achieve this. Let us look at the top five reasons why investing in Singapore’s property market will help you earn and save more.
Rapid Economic Growth
Singapore is at the top of the list of developed countries with an economy that is streamlined and robust. Not only is the property industry popular, but Singapore is home to many technological and financial companies. These companies can perform exceptionally well in the market. For this reason, your investment will increase in capital appreciation over time. The cities in Singapore are constantly growing and there is an economic demand for more entrepreneurs who can invest in the country.
A property you buy today in Singapore can be sold for almost twice the amount in the next 10 years. Singapore is regularly beating economic forecasts, showing that the economy can weather most economic storms. It’s still one of the most stable and secure destinations to invest your money in.
Refinancing Becomes Cheaper
When you purchase a property in Singapore, you have a specific term by which the mortgage abides. By choosing to refinance the property every decade or so, you can take advantage of lower costs. Plan it accordingly and you can drop your monthly premiums substantially. Refinancing is a way to cash out money from your mortgage based on what you have paid. It takes your new credit score and financial situation into account and deducts it from what you owe to give you a better interest rate and fixed term.
The key thing to keep in mind concerning refinancing is finding competitive rates that will help you to get the biggest savings. In Singapore, you can contact Property Guru, where these concerns are just a call and click away. Property Guru provides numerous guides on navigating the housing industry in Singapore and surrounding Asian countries, and how you can save money every step of the way.
No Capital Tax on Gains Earned
With every investment you make, you have to pay a small portion back to the government in capital tax. This is calculated based on profit made from any property sale, compared to the price you bought it for. Singaporeans are lucky because there is no capital gains tax on investments. Any monetary gains you have from working in Singapore’s property market won’t be bound by the taxman. You will not have to pay a portion of your earnings if you made a profit from selling an asset.
This is one way that you can earn money without having to pay the 20% income tax regulated in Singapore for other types of jobs. Similar to stocks, you won’t be charged when an asset such as property appreciates and increases in value.
Rich Business Potential
Apart from opening a business yourself, Singapore property is mostly used for renting out to other businesses. It is incredibly lucrative as the country has been called the top investment destination in the world. Every day hundreds of businesses are moving to Singapore or opening new branches. This is creating a huge demand for property.
Whether you choose to rent out or use Singapore property for yourself, the economy itself is very stable. This means that there is a great deal of financial security in your investment. Plus, Singapore is expected to be the next major tech hub in all of Asia. The opportunity for new business ventures is expanding each year. These businesses will need buildings and offices to operate in.
This is a great benefit if you are looking to start investing in Singapore’s property market.
Recently, the central banks across the world made a concerted effort to keep all property interest rates as low as possible. The goal is to assist people in making property purchases. Singapore managed to drop theirs to only one percent which made the whole process easier for low-income individuals. To aid the citizens of Singapore even more, the government incorporated the Monetary Authority of Singapore (MAS) to give property owners an option to pay the loan back at the end of the term. This is known as a deferment on your property loan.
Up until December 2021, Singapore will continue to offer these initiatives to combat the financial difficulties brought on by COVID-19. Currently, property investing in Singapore has never been cheaper, or as profitable. It’s the ideal time to secure your seat in the market.
Investing in Singapore’s Property Market – Summary
Property investment is still one of the best and most stable ways to increase your financial assets. Most other industries just aren’t as comparatively attractive. With Singapore’s low-interest rates and numerous benefits, it’s easy to see why they are at the top of the global economic scale.
For more articles like this, check out the real estate section of the site.