Holiday homes are a hot topic in the media right now, especially with Chief Medical Officer for Scotland, Dr. Catherine Calderwood, having to resign over visiting hers during the COVID-19 outbreak.
However, don’t let the negativity surrounding that particular case put you off. A holiday home can be an excellent investment both financially and for the quality of your life, especially if you choose an overseas location like Singapore.
Singapore is impressive
One of the chief factors for choosing Singapore for the location of any holiday home is that you want to spend time there. After all, you and your family can visit several times a year, as well as rent it out at other times.
Singapore is an island city-state in Southeast Asia and one of the most perfect holiday destinations there is. First of all, you have a tropical climate that encourages the growth of exotic plants, flowers, and rainforest jungle.
Then there is the fact that Singapore is one of the cleanest and safest cities in the world. You can even drink the water without having to worry.
Of course, the real kicker is that Singapore is a beautiful melting pot of many different cultures and religions including Buddhism, Hinduism, Islam and Christianity. In fact, that is why you will find so many sites of cultural interest in and around the city. The red and gold Buddha Tooth Relic Temple, the Gardens by the Bay with its solar trees, and the Jurong Bird Park to name a few.
Finally, in support of Singapore, they have some pretty amazing gastronomic treats as well. With the coconutty-spicy Laksa soup, being favoured by locals and holidaymakers alike.
An excellent investment
One of the most significant benefits of investing in a holiday home in Singapore is the potential capital growth involved. That is, your investment can grow significantly from the time you bought the house, to the time you decide to sell.
This is because there is an emerging market for holiday homes in Singapore, for a relatively low cost. Therefore potential for paying a mortgage off faster and selling on at an increased profit is much higher.
Of course, just like any time of financial investment, there are no guarantees with property. You could end up losing money rather than making it.
However, it is worth noting that of all the types of investment, property is generally the most secure. That is as long as you have the resources to hold onto your holiday home. Until the market in the location is raised again.
Good rental income
Above you will have seen all the wonderful things that Singapore has to offer. However, this matters beyond it just being a great place to take your friends and family. It also matters because it means you will be able to command an excellent rental income for your property as well.
Of course, to maximise your chances of getting the most income from holiday rentals, you need to consider several factors. The first is the size of the property. In fact, many people investing in this area will opt for landed Property in Singapore as their first choice. The reason being that these larger residences with outside space demand a higher income because they are more suitable for families and large groups.
Additionally, do not forget to consider the location of your holiday home in Singapore. In particular, homes that are only a short drive from the airports, have a beachfront location, or are located amid the city will command the best rental income.
Another great benefit of choosing Singapore for your holiday home is that there are many helpful services available. In fact, because so many people choose to have a vacation home in this country, you will find that there are already agencies that can deal with everything. From welcoming your guests as they arrive to doing a deep clean after they leave – all for a very reasonable price.
Something that means you can offer the best service to those that rent your property. Yet, you don’t have to get caught up in any of the hard work of changing beds and scrubbing floors yourself if you don’t want to.
A word to the wise
Of course, just as you would expect from a task such as buying a property overseas, there will be some issues that you need to be aware of. One of these is the exchange rate. In fact, depending on how well the pound is doing against the Singapore dollar (SGD), you could find yourself making significant savings. Particularly in areas like the initial price of the property, mortgage, and the services you need to run it. However, if the exchange rate is favourable, it can start to quickly eat into your profits. Something that means it’s a very good idea to stay on top of what is going on with currency.
Finally, when buying a holiday home in Singapore or anywhere overseas, remember that the legal set up will not be the same as it is in the UK. You must do your homework before you even consider partying with any of your hard-earned money.
In fact, in particular, Singapore has a system of state-provided homes. These can be bought and sold. However, they do have some restrictions on them, especially for overseas non- residents. Fortunately, you can find out about these on sites like this, before you even begin the process. Something that means it doesn’t need to be an issue, and that Singapore is genuinely an excellent choice for a holiday home investment.