Analysing ABSD for Foreigners
Is paying ABSD a wise decision for foreigners?
Many foreigners are interested in buying Singapore properties for investment, education or immigration purposes.
Let us examine the projected returns of ABSD-paying investors.
Average Annual Housing Inflation Over the Past Decade
Over the past decade, private properties (non-landed) grew by 3.85%/annum. Assuming history repeats itself, in 10 years time, a $1m property will be worth $1.38m.
*Not all properties appreciate similarly.
Returns on Equity (Property)
Based on 1.8% interest. 25 years tenure.
Outstanding Loan at 121st Month
Singapore Real Estate
A Good Currency Hedge
*Figures Rounded off
*10 years currency difference (5 Jan 2012 - 5 Jan 2022)
Benefits of Singapore Properties as An Investment Choice
1. Provides good returns, low volatility and a historical appreciation trend against most global currencies
2. Enables low cost leverage to multiply wealth in a shorter time
3. Enjoy the historical compounding effects of property price inflation for growing wealth