Looking for the best place to invest in commercial property and make enormous returns? Singapore is an ideal place. With an ever growing economy and increasing demand for commercial space, investment in Singapore in the property sector is the best decision one can make. There are several reasons why one should utilize their hard-earned resources and invest in commercial properties in this beautiful country. Below are ten reasons why one should make an investment in Singapore Commercial Properties:
1. Free Trade Economy
Singapore is one of the very few countries in the world where trade is free for any investor. That is specifically because of their adapted secure property rights and policies. It was ranked as the second best economy that is free to conduct business and invest after Hong Kong by Heritage Foundation. There are no stamp duties in commercial property ownership, and this makes it easier to dispose your property making them more flexible and liquid than residential property.
2. Relatively higher property value appreciation potential
According to a local authority known as Urban Redevelopment Authority (URA) price index for property, there is a potential upside growth of between 30% to 50%. And these relatively higher potential growth rates will be experienced more in commercial properties than in residential properties.
3. Stable real estate capital protection and growth
The real estate market in Singapore is more stable and has a higher potential growth than any other form of investment in Singapore. Commercial property investments returns can be as high as up to 9% annually.
4. Higher yield in rental returns
Commercial properties in Singapore have higher yields in rental returns and greater hikes in rental amounts as well. In good economic times, investors yield more in commercial properties than in residential properties.
5. Higher bank loans limits
Investors in Commercial properties get higher loan limits of between 70% and 80%. That is by far a relatively higher limit than residential property loans that have a limit of up to 60%.
6. Few commercial properties development
Recently there has been fewer commercial properties launched around Singapore. Investors willing to make an investment in Singapore that will give them higher returns in future should currently choose to invest in commercial properties.
7. Rush in commercial property investment plans by local and foreign investors
Currently, more locals and foreigners are switching to invest in commercial properties. Now is the best time to invest commercial properties instead of waiting for demand to go down.
8. Diversified economy
Singapore has a diversified economy that is relatively performing better in almost every sector. Such other well-known good performing sectors include: shipping, tourism and financial sectors. With such diversified economy, Singapore is more stable and ideal place to invest in commercial properties.
9. Singaporean government city globalization plans
The government of Singapore wants some of its major cities ranked among the top global cities in the world. That is according to Prime Minister Speech during 2012 Economic Society forum. The government has already started strategizing on the necessary steps and measures to make these aspirations come true. By investing in commercial properties, investors will be positioning themselves to benefit from subsidies that the government might put forth to accelerate this ambition.
10. Lower property taxes
Properties are taxed at 10% flat rate in Singapore. That is by far lower than in most places in the world. By investing in commercial properties in Singapore, investors will accrue more yields on their investments.
Making an investment in Singapore in the commercial property sector is worthwhile and very rewarding as well. Investors willing to gain higher yields in their investments should not hesitate to make this profitable venture.