Financing Overseas Property Investment: Malaysia and London

Amid the latest round of cooling events in January 2013, which is one of the most summative to date, Singapore’s investors are turning to overseas valid land markets to profit from property investments.

Lured by news of a high-swiftness rail linking Singapore and Kuala Lumpur by 2020 and the rise of Iskandar Malaysia just across the Causeway, property investors are ever more involved to sink monies into Malaysian properties.

Farther away, across the European continent, Singaporeans are attracted to their former colonial master – Britain – as an investment destination. Specifically, London properties see warming buyers’ inclusion taking into account recent launches registering brisk sales. Just into 2013, and already several London property launches have made their habit into Singapore, including Highwood House, Fulham Riverside and Chelsea Creek.

The attractions of London properties lie in their rising rental yields and mighty capital values.

Thus both investment destinations (Malaysia and London) Singaporeans are eying have mighty historical ties amid than Singapore, and now it looks by now their investment ties are magnification as capably!

Interested buyers hoping to jump into this sg property investment bandwagon will likely finance their property purchases considering a bank further. Capitalising in this area this, banks are already rolling out mortgage packages for London and Malaysia exclusively.

One bank introduced 3-month SIBOR-pegged loans in Singdollar for property purchases in both places.

Borrowers have to be Singaporeans or Singapore Permanent Residents (PRs) unaided. For the latter who are moreover Malaysians, the optional accessory criteria is that they must not be residing in Malaysia.

Specifically, the bank’s London mortgage package allows borrowing of together amid S$300,000 to S$3 million, subsequent to than a maximum of 70% change antique-to-value (LTV) ratio.

On the subsidiary hand, its Malaysia’s package allows for loans starting from S$200,000, behind no upper limit. The LTV ratio is furthermore 70%.

Both innovation packages come following a lock-in period of single-handedly a year. During this epoch, partial or full repayment will be subjected to a penalty events of 1.5% of the outstanding press on amount.

Loan termination will be subjected to a penalty of S$1,000 or 1.5% nearly amount cancelled or undisbursed, whichever is in the disaffect ahead.

Loan tenure can be all together in the middle of 5 to 30 years considering a hat of 70 years.

Similar to Singapore home loans for the island-city’s properties, the two packages are within realize for building-under-construction projects, but without help a far and wide-off along payment scheme is allowed.

However, for refinancing the property must be completed.

Very importantly, make a make a get your hands on of of sticking to of comply to note that there is a call upon margin if the LTV rises to 80% and above. When this happens borrowers will be asked to repay share (above the monthly installment amount) or each and every one of their evolve.