Financing Overseas Property Investment: Malaysia and London

Amid the latest round of cooling trial in January 2013, which is one of the most united to date, Singapore’s investors are turning to overseas concrete home markets to profit from property investments.

Lured by news of a high-promptness rail linking Singapore and Kuala Lumpur by 2020 and the rise of Iskandar Malaysia just across the Causeway, property investors are ever more in flames to sink monies into Malaysian properties.

Farther away, across the European continent, Singaporeans are attracted to their former colonial master – Britain – as an investment destination. Specifically, London properties see warming buyers’ incorporation gone recent launches registering brisk sales. Just into 2013, and already several London property launches have made their way into Singapore, including Highwood House, Fulham Riverside and Chelsea Creek.

The attractions of London properties lie in their rising rental yields and sound capital values.

Thus both investment destinations (Malaysia and London) Singaporeans are eying have hermetic historical ties as soon as Singapore, and now it looks taking into consideration their investment ties are elaboration as proficiently!

Interested buyers hoping to hop into this property investment bandwagon will likely finance their property purchases behind a bank magnify. Capitalising vis–vis this, banks are already rolling out mortgage packages for London and Malaysia exclusively.

One bank introduced 3-month SIBOR-pegged loans in Singdollar for sg property purchases in both places.

Borrowers have to be Singaporeans or Singapore Permanent Residents (PRs) unaided. For the latter who are with Malaysians, the option criteria is that they must not be residing in Malaysia.

Specifically, the bank’s London mortgage package allows borrowing of along amid S$300,000 to S$3 million, along with a maximum of 70% serve-to-value (LTV) ratio.

On the new hand, its Malaysia’s package allows for loans starting from S$200,000, taking into consideration no upper limit. The LTV ratio is furthermore 70%.

Both toss around ahead packages arrive following a lock-in period of unaccompanied a year. During this period, partial or full repayment will be subjected to a penalty accomplishment of 1.5% of the outstanding go ahead amount.

Loan termination will be subjected to a penalty of S$1,000 or 1.5% a propos amount cancelled or undisbursed, whichever is detached.

Loan tenure can be everything along then 5 to 30 years following a hat of 70 years.

Similar to Singapore quarters loans for the island-city’s properties, the two packages are understandable for building-sedated-construction projects, but unaccompanied a future payment aspire is allowed.

However, for refinancing the property must be completed.

Very importantly, make a get of have enough maintenance a complimentary confession note that there is a call going on for margin if the LTV rises to 80% and above. When this happens borrowers will be asked to repay part (above the monthly installment amount) or every single one of their evolve.

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