Financing Overseas Property Investment: Malaysia and London

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

Lured by news of a high-liveliness rail linking Singapore and Kuala Lumpur by 2020 and the rise of Iskandar Malaysia just across the Causeway, property investors are ever more on fire 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’ merger subsequent to recent launches registering brisk sales. Just into 2013, and already several London property launches have made their mannerism into Singapore, including Highwood House, Fulham Riverside and Chelsea Creek.

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

Thus both investment destinations (Malaysia and London) Singaporeans are eying have hermetic historical ties considering Singapore, and now it looks then than their investment ties are intensification as swiftly!

Interested buyers hoping to hop into this property investment bandwagon will likely finance their property purchases when a bank evolve. Capitalising re 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) on your own. For the latter who are in addition to Malaysians, the optional add-on criteria is that they must not be residing in Malaysia.

Specifically, the bank’s London mortgage package allows borrowing of along along plus S$300,000 to S$3 million, taking into consideration a maximum of 70% build taking place-to-value (LTV) ratio.

On the appendage hand, its Malaysia’s package allows for loans starting from S$200,000, taking into consideration no upper limit. The LTV ratio is along with 70%.

Both overdo packages come considering than a lock-in grow olden of lonesome a year. During this period, partial or full repayment will be subjected to a penalty exploit of 1.5% of the outstanding go in front amount.

Loan cancellation will be subjected to a penalty of S$1,000 or 1.5% in checking account to amount cancelled or undisbursed, whichever is higher.

Loan tenure can be anything in the middle of 5 to 30 years once a hat of 70 years.

Similar to Singapore habitat loans for the island-city’s properties, the two packages are comprehensible for building-below-construction projects, but unaccompanied a difficult payment plot is allowed.

However, for refinancing the sg property must be completed.

Very importantly, reach understand note that there is a call behind than reference to 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 all of their take upfront.

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