Newbie from Singapore

[Clarice Tan]

Hi, I am 19 years old this year, still a student. I have read up abit about real estate investing, but i know it is not enough and i am giving myself a year to learn before i start investing. However, i am unfamiliar with how to start investing locally (in Singapore) and how can i start investing overseas as well? 

Can anyone advice me on these points? Also, does anyone know will it be better if i were to invest overseas, would it be a better choice to invest in property in countries closer to me like Malaysia or Indonesia, as compared to the US? 

Thank you. 

[Andrew Anderson]

Hi Clarice!

I just joined BP too and have been living in Singapore as an expat for two years (but about to move back to the US). A few questions that may help answer questions:

1. Are you a Singaporean citizen? This makes a huge difference.
2. Are you thinking of residential or commercial (including small businesses)?
3. Do you already own your own HDB or do you still have that credit?
4. What kind of capital do you have access to? Investment properties aren't cheap in SG relative to MY or ID

My two cents on Singapore's property market from an expat former banker perspective:
-cap rates (income-expenses before financing relative to property market price) went through the roof since people see limited land--peaked in 2015ish, but still outrageously low
-interest rates dropped low enough to sustain borrowing on these low returns
-building has continued without parallel demand growth (supply>demand)
-Singapore employment regulations are being more and more protectionist (and an ageing population) so you won't see foreign labour growing significantly in the next 5-10 years IMO

Personally, I would be more interested in Indonesian office/industrial/MF just from macroeconomic factors, but there's opportunities in every market if you find the right niche. Be warned that surrounding developing SE Asian countries depend a lot on who you know for regulatory issues and absentee ownership would be tough/risky. I've done a bunch of work in the Philippines have have seen friends get burned. (Carefully research assumptions that salespeople give on IRR projections).

Probably more opinion than you were looking for, but I was excited to see another person from Singapore here (on the day I first posted too)!