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Consumer watchdog group raises the alarm as overseas property purchases surge
Think twice before splurging abroad.
A fool and his money are soon parted, and the Consumers Association of Singapore (CASE) is urging Singaporeans to be very cautious when it comes to splurging on properties abroad.
CASE noted that overseas property purchases by Singaporeans have increased significantly in recent years, with a large number of foreign properties being advertised and marketed in the country.
The group warned that investing in an unfamiliar foreign market holds high risks, such as foreign currency fluctuations, property market trends, sovereign risks and interest rate risks.
"CASE is very concerned about the recent proliferation of advertisements on foreign property investments. Such advertisements often make positive claims about the investment value of the properties and the potential returns, but they seldom clearly disclose the risks and the legal and regulatory framework involved in foreign markets which are very different to Singapore," said Lim Biow Chuan, President of CASE.
CASE noted that some of these deals turned sour when prices declined sharply, or when developers became insolvent and were unable to continue with the projects.
"Investors should remain cautious about these high risk investments and keep in mind their financial needs and commitments as well as the risks involved," added Lim.
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