They scoured the exhibition stands for new opportunities and eagerly listened to the invited speakers, and even taking notes as the experts offered alternative options in the face of an inevitable slowdown in the local market following seven rounds of government cooling measures.
Vendors and agents at the exhibition were expounding the virtues of property markets from Australia to Mongolia, so there was no shortage of advice and tips on where to plant a few strong Singapore dollars and watch them grow into money trees. In fact, trees were also on the investment menu, as were mushrooms and fine art, suggesting the appetite for bricks and mortar is already extending to include other tangible sources of potential profit.
Of course, any good recommendation comes with a caveat, and for Singaporeans looking to invest beyond the comfort zone of their well regulated real estate market, the buzzword is caution.
Singapore's neighbouring countries (and soon to be AEC partners ) undoubtedly offer plenty of appealing and affordable property investment options, but in most cases, the real estate markets still fall into the medium risk category at best. A lack of clearly defined protection mechanisms means that due diligence, rather than being built in to the purchase process, often falls on the buyer or his/her chosen representative.
Without thorough checks and balances things can go seriously wrong.
Lessons can be learned from the experiences of overseas buyers based in other countries around the world such as the UK that have traditionally led the field in terms of intentional property investments.
According to The Guardian newspaper, before the financial crisis slowed down the rate of purchases by British buyers outside the UK, one in five property investors ran into "significant difficulty" abroad — that's 38,000 people a year.
To avoid going down a similarly risk riddled path, the speakers recommended several approaches. Firstly, avoid buying properties based on emotion. Buying into a resort may seem like a wonderful idea on a short trip the beach, for example, but it's best to step back and look at the real potential before signing on the sand-specked dotted line. Similarly, purchasing a high-end condo in a foreign city that's offered at 50 percent of the normal price you would pay back home may seem like a comparative bargain, but there may be reasons beyond the location that make it so cheap.
As a rule of thumb, the more experienced investors I spoke to in Singapore advised that when looking at overseas property, sticking to trusted developers with a proven track record is key. They also suggested recruiting a reputable local professional to help conduct the necessary background checks, as well as taking a wider look at the long term stability of a particular market, especially with regard to the supply of properties and the likely sources of buyers for re-sale.
Finally, the experts all recommended studious research. Only by reading up on and even visiting the countries you intend to invest in to talk to those who have gone before can you hope to reduce the risks.
Of course, you should also follow your favoured property markets online and absorb the information and insights offered by the region's best property media.
If you are seriously considering a property investment abroad and have come to Property Report to investigate the options available, you are already being SMART.
Keep up the momentum by subscribing here.
Article source: http://www.thethailandlinks.com/2013/03/19/getting-smarter/
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