The Biggest Mistake Singaporeans Make When Analysing Overseas Property

Whenever my friends ask how I analyse overseas property, I usually start with the usual layman metrics like rental yields and capital appreciation to gauge potential returns. But for many Singaporeans, buying property abroad isn’t purely about investment. Some are planning a second home or even relocation, where factors like safety, cost of living, purchasing power, and quality of life take centre stage.

So I always end my explanation the same way: “You can’t analyse property abroad the same way you do in Singapore.” Today, we’ll look at why, by breaking down the familiar numbers and seeing how to interpret them differently.

Rental Yields: Why They Matter Even If You’re Not an Investor

We got quite a bit of flak for our recent piece on French cities. Fair enough. As a resident, I know France is going through challenges, and we should be more sensitive about how overseas property analysis can be perceived as promoting gentrification. That was never our intention. That said, you can’t ignore yields. They’re often the first number people look at, even those who claim they’re “not buying for investment.”

Why should homeowners care? Because overseas property comes with carrying costs such as depreciation, inflation, and in many countries, local property taxes or even imputed rent taxes.

A low-yield property in a low-demand area can quietly erode your wealth over time. One that supports healthy rental demand can act as a built-in hedge against depreciation.

Think of rental yield not just as potential income, but as insurance against value loss. Even if you never rent it out, a property that can easily be leased at a decent return remains a flexible, income-capable asset instead of a financial drain.

Another important consideration, when it comes to yields, are rent control measures

Singapore removed rent control decades ago, but this is not uncommon in countries like the US, or parts of the EU. Rent control doesn’t just limit rental income (as reflected in the yield.) As a tenant, remember that some landlords may put less effort into maintaining a property when the rental income. This can affect you as a landlord as well, as other owners in the same property may not want to contribute to better upkeep. 

Net Rental Yields May Be Harder to Predict Overseas

As in Singapore, the yields advertised online are often gross yields, which exclude taxes, agent commissions, management fees, repairs, and vacancy periods.

Depending on the country, these deductions can eat up 20 to 40 per cent of your headline returns. For example, Japan’s six per cent gross yield might fall to 3.5 to four per cent net after costs. In France or Italy, where ownership taxes and syndic (management) fees are higher, net yields can drop even lower. In Singapore, for instance, high maintenance fees can substantially eat into the gross rental yield. 

In some cases, variable costs make net rental yields hard to predict. For instance, in the UK, landlords often face unpredictable maintenance bills due to the age of housing stock, along with council taxes that can rise unexpectedly. In Thailand or Indonesia, yields can fluctuate depending on whether the property is held under foreigner-restricted ownership structures, as those often come with higher management costs.

That said, even if you never intend to rent out your property, yield still matters because it signals underlying demand. A market with strong yields usually has healthy tenant demand, liquidity, and stable resale potential, all of which are crucial indicators of long-term value.

Crime Rates: Why You Shouldn’t Overgeneralise

Safety is a top concern for Singaporeans buying overseas, but crime statistics are often misunderstood. Singapore is famously safe, yet even here, we instinctively know certain neighbourhoods that “feel” different, things you’ll never see reflected in official numbers. It’s the same abroad.

National crime rates can be misleading. What matters more is which crimes are common and where they occur.

In the US, two districts a few kilometres apart can be worlds apart, one lined with family parks and the other plagued by break-ins. In Japan, violent crime is rare, but petty thefts, especially bicycles, umbrellas, and underwear, are common.

So don’t overreact to headlines or dismiss a whole country. Instead:

• Zoom in to city or district-level data because local differences matter. Check results over periods like five years; monthly or yearly changes may be flukes.  Also, a neighbourhood with crime rates steadily declining over five years may be better than one that has lower crime rates now, but is steadily seeing an increase in crime
  
• Take into consideration the local reporting culture. Some societies underreport minor crimes due to distrust in the police, cultural norms, or bureaucratic hurdles. Others, like Japan, Scandinavia, and yes, Singapore, have high reporting rates – this can make them look statistically worse despite being safer.
  
• Look at changes in the neighbourhood over the years. Urban renewal, new transport links, and schools often signal improvement. The presence of youth clubs or community help centres might reflect on existing issues, but they also demonstrate that resources are being allocated to deal with the problems.
  
• Check the type of crime. There’s a big difference between vandalism by teenagers and violent robbery. Some “high crime” areas may just be afflicted by thefts related to commercial zones.
  
• Assess if the risk is preventable. In some neighbourhoods, the problem is not solvable by just good locks and security (e.g., if the problem is drug dealers fighting in the streets, then you’re not safe coming to and from home, so home security is only one small part of the problem.) 

That said, neighbourhoods with persistent robbery, gun violence, or drug problems should probably be avoided entirely. If available, check for information on foreclosures or tenancy evictions (not every country publishes these though.) A very high rate of foreclosure and evictions tend to suggest neighbourhood stress, and often has correlation to higher crime rates. 

Property Management: The Hidden Statistic No One Talks About

Here’s a metric that never appears on property portals: how well the building is managed.

In Singapore, we’re spoiled by our MCST (Management Corporation Strata Title) system. Pay your quarterly fee, and you can expect working lifts, clean corridors, trimmed landscaping, and timely repainting. It’s regulated and predictable. If something breaks, someone fixes it.

Overseas, that reliability isn’t guaranteed.

In the EU, you’ll often encounter syndic systems, which are property cooperatives ranging from professional agencies to resident committees. In theory, everyone chips in for upkeep. In practice, it can mean endless debates about who pays when the roof leaks. 

In the US, the equivalent is the Homeowners’ Association (HOA). Some are excellent, with transparent budgets and quick maintenance. Others struggle with infighting, delayed repairs, or poor enforcement of rules.

Even Malaysia faces similar issues. Some developments see residents stop paying maintenance fees, leaving management committees unable to fund repairs. Within a few years, a once-sparkling condo can feel neglected and unsafe.

The takeaway: always examine how the property is managed and who is responsible. Good management keeps both your investment and your living conditions intact.

Quality of Life: Finding Where You Can Truly Thrive

Quality of life is one of the most overlooked metrics for overseas buyers.

If you’re planning to live abroad, the real question isn’t “Can I afford this place?” but “Can I thrive here?”

Look for signs of long-term liveability rather than short-term hype. Communities where locals can both live and work tend to have stronger infrastructure and social cohesion.

Cost of living, purchasing power, healthcare, and walkability all shape your day-to-day experience. Financial metrics fade quickly if you don’t enjoy where you live.

Rapidly gentrifying areas can look attractive on paper, but often lose their soul once foreign capital floods in. When speculation dries up, so does the value.

By contrast, neighbourhoods with genuine quality of life, such as good public transport, healthcare, and amenities, attract long-term residents rather than speculators. That stability sustains property values even through downturns.

It’s a quiet but powerful cycle. Places that are pleasant to live in tend to hold their value because people stay.

Conclusion: Think Like a Local

Analysing overseas property isn’t about spotting undervalued markets. It’s about understanding the story behind the numbers and whether you can see yourself fitting into it.

Singapore’s housing market trains us to think in terms of predictability, stability, and structured planning. But when we step into the wider world, those rules don’t apply. Crime statistics can’t tell you if a street feels safe. Rental yields don’t reveal the true cost of being a landlord. Maintenance fees don’t guarantee accountability.

The savvy overseas buyer learns to read between the lines. Numbers matter, but so does context. Because eventually, a property stops being just an investment. It becomes a home for people. Whether that’s yourself or someone you’re renting to, the real test of sustainability is always the human story that lives beyond the numbers in your spreadsheet.