Tag Archives: London

Buying costs in SIngapore among highest in the world

Posted on 5 Jul 2013 | Comments Off on Buying costs in SIngapore among highest in the world

The costs of buying a property in Singapore are, along with Hong Kong, among the most expensive in the world for non-residents.

New research from Knight Frank looked at the purchase costs associated with buying a new-build residential property in 15 prime property locations around the world.

Hong Kong is the most expensive location to buy a home, once all the associated costs have been factored in. Non-residents can expect to pay 25 percent on top of the purchase price when buying a new-build US$3 million home. The bulk of this consists of stamp duty costs and a property tax levied on foreign non-permanent residents.

In Singapore, buyers pay purchase costs of 19.3 percent. The city-state’s 18 percent rate of stamp duty for non-residents is the highest of all the world cities analysed in the Cost of Buying report, in which analysis compared the purchase costs for non-resident buyers purchasing a new-build property valued at US$3 million. This includes stamp duty, legal costs, transfer fees and agency fees (where these apply for the purchaser).

London and Sydney sit in third and fourth places respectively with buying costs making 7.9 percent and 7.2 percent of the total purchase price in each city respectively. Moscow, where buying costs for non-residents for a US$3 million property amount to just US$100, is the cheapest of the 15 locations surveyed.

Despite being one of the more expensive locations to buy a new-build home, London property remains popular with international investors who are attracted by the U.K.’s political stability, good communications and the city’s top schools.

The research showed that 73 percent of prime central London’s new-build homes in 2012 were bought by overseas buyers, with Singaporeans making up the largest proportion of international purchasers.

In New York there is no stamp duty, but the purchase of a US$3 million new-build condominium will incur a 1 percent mansion tax.

Buying a US$3 million home in Paris is relatively low-cost. There are registration and notary fees to be paid, but it is cheaper to buy a luxury home in the city compared to other traditional locations.

Source – PropertyGuru – 5 Jul 2013

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London real estate not what it seems

Posted on 23 May 2012 | Comments Off on London real estate not what it seems

Far East buyers looking into London have been met with a few surprises once they saw their actual home.

The Star reported that after Hong Kong businessman He had purchased a four-bedroom apartment in Britain he believed was a 40 minute walk from central London, he soon found out it was 40 minutes by high-speed train.

This is an example of how many Far Eastern buyers looking into buying British homes are facing unseen real estate issues.

“It is a matter of developers saying: Here are some people who are likely to be interested. They probably do not know too much about the market, so why don’t we advertise there’,” said David Eldon, former chairman of HSBC’s Asia unit. “I think they are being a little economical with the truth.”

Major developers such as Barratt, Taylor Wimpey, and Berkeley have been targeting cash-rich Far Eastern buyers since 2009 after the global financial crisis sapped demand at home.

Berkeley said it had had many repeat purchases from Asain buyers over 20 years, although it acknowledged a mistake in one of its press releases. Taylor Wimpey said it offered a high level of service to all customers.

In 2010 the number of Chinese and Pacific Asian buyers of the highest-quality newly-built London homes rose to 37 per cent from 4 per cent in 2009 with the majority purchase for investment and are used to buying off-plan before the home is built.

David Linklater, head of litigation at law firm Alan Broadhurst, who represented He said the businessman was told his flat was 40 minutes from central London.

“Lots of people go to the fairs in Hong Kong and get a sheet of paper with a picture of Big Ben. You think you are going to be the Queen’s neighbour when actually the Queen has a great big garden with a big wall around it,” said Linklater.

Despite photos of Harrods or Buckingham Palace alongside real estate exhibitions many property locations are omitted due to being in less desirable London locations.

An example is a brochure that advertised Kensington High Street as “London’s most sought after new address.” However, the High Street Kensington underground station is a 15 to 20 minutes walk away and the flats are in a a less sought-after location new two to other stations.

A press release described the development as “a short walk from the luxury shopping available at Harrods.” According to the Transport for London website the store is a 50 minute walk away.

“To an unsuspecting buyer, you think wow, it is amazing, but actually it is the wrong end of Kensington High Street, right next to Kensington Olympia,” said Camilla Dell, managing partner at Black Brick Property Solutions, which helps overseas buyers find London homes.

“There is a lot of embellishment going on working off the naivety of the Chinese buyer,” said James Moss, managing director of property consultancy Curzon Investment Property.

Source: PropertyReport – 2012 May 22

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Posted in Overseas Property

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