Friday, October 26, 2012

Buying property under development

There is a risk of buying a property under development. If the developer is not able to complete the project due to financial difficulty or other issues, you will be stuck with a partially completed project.

This has happened to investors who have bought properties under development in Malaysia and other countries. The control over the developers is not as reliable as in Singapore and some of the projects had been aborted. The investors had been stuck with the uncompleted projects.

It is better to wait and buy a completed property, even though the price may be higher.

When buying an overseas property, the purchaser of an overseas property should also be aware about the government regulations, e.g. property tax, capital gain tax, approval for foreign ownership, etc.  After taking all these risks and uncertainties into account, it may be better to avoid buying an overseas property.

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