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Financing Overseas Property Investment: Malaysia and London

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

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

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

Thus both investment destinations (Malaysia and London) Singaporeans are eying have mighty historical ties bearing in mind Singapore, and now it looks bearing in mind their investment ties are enlargement as expertly!

Interested buyers hoping to hop into this property investment bandwagon will likely finance their property purchases taking into account a bank press on. Capitalising concerning the subject of 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) lonely. For the latter who are along with Malaysians, the auxiliary criteria is that they must not be residing in Malaysia.

Specifically, the bank’s London mortgage package allows borrowing of in the midst of S$300,000 to S$3 million, considering a maximum of 70% elaboration-to-value (LTV) ratio.

On the substitute hand, its Malaysia’s package allows for loans starting from S$200,000, considering no upper limit. The LTV ratio is furthermore 70%.

Both evolve packages come behind a lock-in period of only a year. During this period, partial or full repayment will be subjected to a penalty measures of 1.5% of the outstanding progression amount.

Loan termination will be subjected to a penalty of S$1,000 or 1.5% coarsely amount cancelled or undisbursed, whichever is well ahead.

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

Similar to Singapore house loans for the island-city’s properties, the two packages are simple for building-asleep-construction projects, but without help a sophisticated payment take aspiration is allowed.

However, for refinancing the property must be completed.

Very importantly, go in front endorse note that there is a call upon margin if the LTV rises to 80% and above. When this happens borrowers will be asked to pay back portion (above the monthly installment amount) or all of their expand.

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