facebookHow do I start investing properties overseas, especially within South East Asia? And how can I have leverage on my capital since properties can be capital-intensive? - Seedly

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Anonymous

18 Apr 2019

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Property

How do I start investing properties overseas, especially within South East Asia? And how can I have leverage on my capital since properties can be capital-intensive?

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The 'easiest' way is to attend those overseas property show held in singapore. Either the property developer or some other investment firm will hold 'property fair' here. Typically almost all the paper work will be taken care by them, and u just have to come out with money. I'm sure u have come across them, eg some iskandar projects.

Other way is to join a property investment club. Where they make collective purchase which allows them to get a better pricing. They are also usually able to hire lawyers/agents which becomes more cost effective when shared.

Investing directly directly by oneself is the hardest. Not just you need to know the property law and tax law, you have to do research of the property location etc. The cost will be significantly higher.

Investing properties (overseas) requires too much due dligence (in either ways). Unless u are an very high networth person with connections. The recourse for overseas investors will be limited inevent anything goes wrong. Most of the time it might be not worth the time and effort.

And indirect way to invest is to invest in an ETF that holds overseas properties. If u want to consider this.

For property investment, your leverage comes in the mortgage-loan. The lower cash deposit needed, the higher your leverage. The terms for overseas investment will definitely not be as good. On top of that there is still a currency risk, and rate rise risk.

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