Remember the days when buying property in Singapore used to be easy? Only a few years ago, it was possible to borrow up to 90% of a property’s value from a bank in order to purchase a private property.
Thanks to Singapore’s tighter Total Debt Servicing Ratio (TDSR) framework, it’s impossible to rely on other people’s money (the banks) for more than 50% financing on the purchase of an investment property.
That’s a major reason why many Singaporeans are now looking outside of Singapore for property investment opportunities – especially in Malaysia.
Ryan Khoo, the Regional Director of Marketing (Malaysia) for ERA Realty and author of the book What’s The Big Deal With Iskandar Malaysia, gives us the inside track on the differences between Singapore and Iskandar private property.
According to Ryan here’s what you need to know:
Final Note: As you can see from the above infographic, it’s not hard to see why purchasing a Malaysian property can be an attractive investment opportunity for Singaporeans – especially for those looking to invest in Iskandar.
As long as you have good credit and your income can support up to 80% TDSR, you’ll be able to finance at least 70% of the property’s value – as long as it’s more than RM $1 Million (SGD $400,000).
However, as Ryan cautions, “just because you are overleveraged by Singapore’s TDSR standards doesn’t mean you should just jump into the Malaysian property market. You still need to exercise due diligence before purchasing another property.”
If you still have your eyes on a property that’s closer to home but don’t know whether you can afford it, you can use our TDSR calculator to find out. You can also get expert advice on the best home loan rates out there by using our Home Loan Wizard.
Is the price difference between Singapore and Malaysia property enough to get you to buy across the causeway? Tell us what you think here.