Is it financially wise to buy a condo in Singapore as a foreigner?

I pay about 4k rent per month and was thinking if I can pay this amount towards my property EMI. But I understand it's not that straightforward, with ton of tradeoffs to consider
1. ABSD - extra 15%
2. Property tax - is it considerable, given i will be occupying the condo myself?
3. The property appreciation in Singapore isn't very high, any suggestions regarding which areas to consider?
4. Leased vs freehold - most properties I am interested in have <80-90 yr leases left.
Thoughts please?

Hi there,

It is a tricky situation however if you do the math, it just might work, provided the property is priced right.

ABSD is currently 20%. Given a list price of $1m for a mature project, it might not make sense to pay 200k worth of tax, which you might not be able to recover through capital appreciation of your property.
Property tax is calculated via your Annual value of your property (derived from what you might be able to earn via rental income pegged to market rates) If it is owner-occupier like you mentioned, your tax rates are lower compared to a property which you do not live in.
To have optimal property appreciation, you would firstly need a good location which would lead to higher desirability with access to infrastructure. If you are looking for existing projects, you would be purchasing the unit at a premium, not accounting for the ABSD. If you have an ample time frame, you could consider looking at a new development project which is either in the late stages of development, or new projects which are in the pipeline. The more affordable price, would help especially when you need to shell out the ABSD, and if the situation is ideal any capital gains following which on the sale of the house, would allow you to net off the ABSD. It is also favorable as capital gains are not taxed in Singapore.
Leasehold properties, will defintely be at a better price point compared to freehold. You can always trade up in the future, if you are considering Singapore as your permanent base in the future.

At the end of the day, the price will be the biggest determinant, followed by the location, due to the ABSD. It is a tough pill to swallow, but taking a step back and planning in advance might make it feasible.

Hope i was able to shed some insight!