Why more Singaporeans want overseas property – but many overlook what comes after buying

Last weekend at an international property event I attended, I came across an interesting idea about investing in overseas property – namely, the issue of economies of scale.

Unlike institutional or asset managers, who manage portfolios comprising entire apartment blocks, the size of the portfolio owned by your typical retail investor does not justify hiring a dedicated asset manager to ensure that the units are in top condition at all times. Typically, we see retail investors growing a relatively modest portfolio of one or a handful of apartment units – typically studios, as well as one- or two-bedroom units – with the majority of the rental income going into the landlord’s pocket rather than property management services. This is a concern because seemingly small cultural differences can cause big headaches. The international property event I attended was organized by FM Investments who were promoting their portfolio of Japanese properties. During a presentation by the CEO,…