Invest in global property
We offer mortgage advice to expats in Singapore who are looking to purchase property internationally, either as a first home, second home or as an investment. We're specialists at finding you the most suitable and competitive mortgage.
Property is one of the very few asset classes that gives you the opportunity to leverage against the asset. ‘Leverage’ in the property world means taking a ‘mortgage’ and in most secure global markets, banks are willing to lend to foreign investors at levels between 50%-70% of the property purchase price. If you’re a ‘buy to let’ investor then it is important that the rental money you generate from the property covers your ongoing mortgage costs, so month on month your running with a neutral or positive cash flow.
It is important to understand the leverage system; verbal approval for mortgage finance isn’t the same as a firm commitment. If you’ve already put down a deposit, make sure you get an offer in principle from your bank and negotiate the best finance rate possible. Get your calculations right and weigh up what you’ll be paying in interest over the lifetime of the loan against the long-term return or rental yield of the property. What might seem like a bargain at first may start to look less appealing once you’ve crunched the numbers. If you can’t get the right finance deal it nullifies the upside of the investment.
Things to consider
If you’re buying an international investment property, the key criteria to consider when borrowing money is to make sure you borrow in the local currency of where the property is situated. If you borrow in the local currency you’re taking a hedge against any currency upside or downside as the tenant will be paying you in that local currency which can be offset against your mortgage straight away. Obviously when you come to sell and you need to expatriate the money, you need to be careful which currency your money is transferred into as there may be fluctuation since you originally purchased. See our currency service in Singapore.
There may also be taxes relevant to where your money is sent to, using the advice of a good financial planner or tax specialist is strongly advised.
Your home is at risk if you do not repay the mortgage or other loans secured upon it.