Category: Property investment;

The I Quadrant blacklisted by Monetary Authority of Singapore (MAS)

I Quadrant

Since 31 May 2019, Monetary Authority of Singapore (MAS) has blacklisted The I Quadrant in the Investor Alert List which, according to MAS website, “provides a list of unregulated persons who, based on information received by MAS, may have been wrongly perceived as being licensed or regulated by MAS”.

The authority stops short of labelling companies in the Investor Alert List as providing scam services or engaged in fraudulent activities. But most Singapore investors should know that it is best to steer clear of those companies listed in Investor Alert List. After all, plenty of local investors had lost their pants investing in property schemes provided by companies like Profitable Plots Pte Ltd (which is still listed in the MAS Investor Alert List). In the case of Profitable Plots, the directors had been jailed by Singapore court.

I Quadrant

The reason for MAS to blacklist The I Quadrant is unclear. According to the website of The I Quadrant, the company provides financial education services relating to property investments. Perhaps, the authority has moved in to blacklist The I Quadrant because of its Facebook advertisements which claimed that the founders are able to “own 36 properties with little or no cash”.

I always …

Investing in overseas properties

overseas properties

In the aftermath of the 2009’s Great Financial Crisis, interest rates had remained very low, driving Singapore wealth builders to look to overseas properties that generate high returns. In addition, the implementation of Additional Buyer Stamp Duty (ABSD) has also led to many wealthy Singaporeans to invest in overseas properties in United Kingdom, Malaysia and United States. In this article, the risks of investing in overseas properties are discussed.

Before we talk about returns, it is important to think about the risks of owning a foreign property. Context is important because investing in properties in Singapore is very different as compared to investing in overseas properties.

In life, if it is too good to be true, it probably is. Henceforth, I always believe in taking care the downside risks and let the potential upsides do the talking itself. Broadly speaking, the downside risks are geopolitical, regulatory and market supply.

Geopolitical risk

Unlike many countries, Singapore has a very stable government with strong ruling party. This is an important factor because investors do not like uncertainties arising from a change of government or major upheaval in the political environment, which often leads to new policies for property ownership for foreigners.

Brexit …

Freehold or Leasehold Property?

Freehold property

One of the most often raised questions among property investors is whether to purchase a leasehold or freehold property in Singapore. While many would argue that freehold is definitely better than leasehold because of the perceived perpetual ownership, this argument may not hold water in Singapore due to the Land Acquisition Act.

In this article, I would share my views on freehold property in Singapore. Once again, I am putting a disclaimer that this article is not meant to be a form of financial nor legal advice. The content is produced to the best of my knowledge and research. If there are any factual errors, please feel free to let me know. I would be happy to amend my article.

Leasehold property

Generally, 99 years old leasehold property must be returned to the government upon expiry of lease. In March 2017, Minister for National Development, Lawrence Wong, highlighted specifically that all leasehold private and public housing will be returned to the state upon expiry. Due to land scarcity, the government needs to recover land to meet changing social needs.

Effectively, this means that home-owners will [This is a premium article. The rest of the content is blocked and can be

Deferred Resale Levy

Deferred Resale Levy

According to Minister for National Development, Lawrence Wong, there were 7900 second-timer households who paid the required resale levy when buying second subsidized flat from the Housing and Development Board (HDB) from 2010 to 2015. Notwithstanding the figure, I suspect many people are not aware of the lurking dangers of deferred resale levy rule.

Not knowing the rule can cost you an arm or leg because without the knowledge, you are unable to strategize and do proper asset planning. In this article, I will share with readers how to exploit the deferred resale levy rule with the goal of building wealth with property.

Please note that I am not advocating anything illegal or sleazy. No, nothing of that sort. In fact, this information that you are going to read is something that you are not likely to find in most personal finance blogs. I learnt about this relatively unknown rule in the course of purchasing my third property and hope to share this really useful information with readers. Read on if you are interested.

Deferred Resale Levy

Second timer applicants

Most Singaporeans are aware that they are given two chances to purchase new subsidized flat from HDB. Hence, Singaporean couples can apply …

Managing your CPF proceeds from the sale of HDB flat to build your wealth

SG Wealth Builder

My wife and I have been house-hunting for the past few years and recently just decided to purchase an Executive Condominium (EC). The desire to upgrade to an EC is because of the new addition to our family. With the arrival of my boy, we need a bigger space. But the key motivation behind this move is basically I want my children to grow up in a better environment. I always feel that people living in HDB three room flats come from “challenging” backgrounds – drug addicts, ex-convicts, etc. I know it is too sweeping to make this sort of statement as I have been living in HDB three-room flat for more than 30 years. But as parents we all want the best for our kids. So in today’s article, I shall note down how to manage CPF proceeds from the sale of HDB flat to build your wealth.

Selling your existing HDB and buying another resale HDB

Firstly, if you are buying EC, you can only apply for bank loans. HDB don’t offer loans to EC owners. Nevertheless, before I touch on the financial aspects for buying EC, I will like to touch on the finances for buying a …

HDB: The thin fine line between “Joint Tenancy” and “Tenancy-in-Common”

Inheritance property

In Singapore, more than 80% of the residents live in HDB flats. Yet how many are aware of the various HDB regulations and its implications to themselves and their loved ones? Not knowing the rules can potentially land you in financial troubles, but may also cause family disharmony and destroy relationships. One of the most overlooked clause is the Manner of Holding, specifically, “Joint Tenancy” and “Tenancy-in-Common”. Read on if you are a joint owner of a HDB flat and is curious to find out how it can impact you.

When you are buying a HDB flat with your spouse or other family members, you would need to decide on the manner of holding the flat upon the transfer of flat ownership, either through joint tenancy or tenancy-in-common.

Technically, under joint tenancy, all the flat owners have an equal share in the flat. However, in the event of a demise of any joint owner, the right of survivorship applies and his interest in the flat would automatically be passed on to the remaining co-owners. This is regardless of whether the deceased joint owner has left behind a Will.

According to an example quoted from HDB’s website “Mr A, Mrs …

Release of second half 2015 Government Land Sales (GLS) Programme

On 11 June 2015, the Singapore Government announced the second half 2015 (2H2015) Government Land Sales (GLS) Programme, which comprises 4 Confirmed List sites and 13 Reserve List sites. These sites can yield up to 7,825 private residential units, including 1,340 Executive Condominium (EC) units, and 277,580 sqm gross floor area (GFA) of commercial space.

Among the Confirmed List sites, Alexandra, Clementi and Siglap are expected to generate the most interest since they are located in matured estates. The Siglap site alone will generates about 750 units. Overall, the Confirmed List comprises 4 private residential sites (including 1 EC site) which can yield about 2,130 private residential units (including 520 EC units).

For the Reserve List, the Stirling site is bound to attract competitive bids from developers as it is located at the popular Queenstown area. The site can accomodate more than 1110 units. The Bedok South Avenue 3 site is also expected to generate interests among buyers as it is located near the Tanah Merah MRT and Bedok Town Centre. The Reserve List comprises 8 private residential sites (including 1 EC site), 2 commercial & residential sites, 2 commercial sites and 1 White site. These sites can yield about …

Property: Foreign Investment Opportunities

Below is a guest article contributed by Lamudi, a German properties listing company. Given the current cooling measures, many Singapore investors are turning their eyes on property market in South East Asia countries. Investors should be aware of the risks involved and the regulations in these countries to avoid losing monies in such investments.

2015 is predicted to be the year when many emerging markets in Asia such open up their property ownership to include foreigners. As it stands in many countries, non-citizens are prohibited from buying properties. For example, in Philippines the country’s constitution bans non-Filipinos from owning land and in Sri Lanka non-citizens pay more tax when they own any property.

However, there are signs that this may be about to change. 2015 will see countries in the Association of Southeast Asian Nations (ASEAN) merge to form a single market. The establishment of the ASEAN Economic Community is expected to boost foreign direct investment in the Philippines and also in untapped markets across the region, putting pressure on lawmakers to amend these ownership restrictions. This year, foreign ownership laws will also come into focus elsewhere in Asia, with debate set to continue in Indonesia and Myanmar about opening …

(Sponsored Article) How to Finance an Overseas Property Investment

The current investment property landscape is rich with opportunities. The big question many have is if they should use financial leverage, and if so what international mortgages are available to them?
 
There are many ripening property investment opportunities around the globe. In many ways markets are experiencing an incredible aligning of the stars which provide the ideal timing for new income property acquisitions. Whether restructuring and optimizing an existing portfolio, or launching into real estate investing for the first time it is an attractive time to seize opportunities, ramp up property holdings, and it is always wise to be diversified.
 
Scaling a portfolio requires capital. Even for those who sometimes feel that they are burdened with too much capital, there are many advantages of using leverage to acquire more investment properties. This is even true today as global interest rates prepare to swing upwards.
So what international mortgages are open to global property investors today?
There are four main strategies for financing overseas investment properties to choose from.
 
Leveraging Existing Home Equity
Accessing home equity from an existing residence in a property investor’s home country may be one of the simplest solutions. This affords investors a straightforward, and easy to

QE3 and opportunities for investors

financial destiny
Last week, the US Fed announced another round of money printing programme known as QE3. It was reported that US$40 billion of new money will be issued every month until the US jobs situation improves. Does this latest move by US government means opportunities for investors?
Since 2008, the US government had purchased trillions worth of Treasury securities, hoping to revive the economy and stimulate job growth. However, the strategy doesn’t seem to work and US unemployment remains stubbornly high at about 8%.
Opportunities

Muddling through the years
I am not surprised that the US Fed announced this QE3. This stimulus measure comes at a time when the US citizen is voting for a new president. President Obama’s job is on the line, so he has to make a last-ditch attempt to win votes and placate the citizen’s rising unhappiness over the persistenet high unemployment rate.

But whether this third round of money printing will be effective is a big question mark. The previous two round of money printing had flooded world wide markets with “hot money” but ultimately those moves were widey regarded as flops, in terms of job creation for the US citizens.
Yes, its true that QE1 and