Though investing in overseas properties may have its risk, the opportunities of gain it brings could also be significant, especially in times when the Singapore dollar is strengthening against the Malaysian ringgit, British pound and Aussie dollar.
Malaysia, the UK and Australia have been favourite countries for Singaporeans in terms of travel, study and emigration. Property launches in these countries have been strongly marketed to local investors looking outside of our shores for investment opportunities. Especially for those who have purchased properties in Malaysia, their buck may walk a little longer now that the exchange rate is S$0.374 to RM$1.
With cheaper payment options, property developers have seen increasing interest from Singaporean buyers in the Iskandar Malaysia regions, Penang and Kuala Lumpur. At the same time, analysts caution buyers against jumping into the market without consideration. A property’s potential value appreciation should also be carefully weighed as the current property market in Malaysia is facing a almost sure-fire sign of saturation. And quickly too.
In London on the other hand, buyers who have previously bought property there have reported “unprecedented price growth”. However, he also added that investors who are looking to purchase properties purely to turn a profit should take into consideration factors such as currency fluctuations, political stability, ease of entry and exit from the market and market transparency.