You know the drill. You have one million dollars in cash to buy a property. Which city do you choose?

It's time to take another world tour to see what one million (SG) dollars can buy you, and see how they compare to your home sweet home in Singapore.

S$1,000,000 (or 575,000)

Source: chancellors.co.uk

With S$1 million + a 3,600 annual service charge, you can get this 654 sq ft one-bedroom apartment in London with a remaining lease of 979 years. This unit has an open plan layout spanning two floors! You have a nice and comfy living area downstairs and a bedroom + study area upstairs.

Pros:

With 979 years left on the lease, it's practically a freehold unit. You won't have to worry about lease decay. Plus, the apartment is located in a sought-after residential area with access to many amenities and bus interchanges.

But the best thing is that there are minimal to no legal restrictions on foreigners buying property. You can easily buy a home in the UK regardless of your citizenship. You don't even need a visa, unless you want to live there long-term, of course. So it's ideal for those planning to invest and rent out, or those who just want a holiday home.

Moreover, London property prices have stabilised and dipped slightly, especially in the Prime Central area. Smaller flat prices (especially studios, one and two-beds) may even continue to fall due to oversupply. Rental growth, currently rising 25 per month YoY, is also expected to rise over the next few months, thanks to student demand and limited supply. This makes ideal conditions for those who plan on renting out their unit.

Financing won't be complicated because you can get a mortgage from a UK bank as a foreign citizen. And as inflation is stabilising, you can expect to see mortgage rates fall closer to 4% before the end of the year. So, you might want to start looking around now because when rates fall, demand is likely to go up.

Cons:

Although London's property market is starting to stabilise, it remains highly competitive for buyers. It doesn't help that stamp duties were raised recently, making homes less affordable.

Main residences (own stay)

First-Time buyers

First-time buyers actually get a lower rate. But the price cap for this relief was also changed from 625,000 to 500,000.

Buy to let (rent out) and second home buyers

There is also an additional 2% surcharge that applies to each rate (including zero rates) for foreigners.

So if we use the above property as an example, you are not entitled to the first-time buyer rates because the value is over 500,000. Instead, you'll have to pay the standard rate for main residences. Let's do the math:

• 0% + 2% up to 125,000 = 2,500
• 2% + 2% of 125,001 to 250,000 = 5,000
• 5% + 2% of 250,001 to 575,000 = 22,750

So your Stamp Duty Land Tax liability comes to a total of 30,250 (around S$52,560). Fortunately, you can get this refunded if you stay in the UK for the next 12 months.

The average service charge in London is between 1,800 to 2,000 per annum. For other major cities, the service charge can go as low as 1,500. Meanwhile, this unit charges 3,600 annually, making it considerably high. Imagine how much that adds up over the years.

And although you can technically get a mortgage, you may face some restrictions, especially if you don't live or haven't lived in the UK for at least two years. There could be fewer mortgage options to choose from, you might be required to pay a larger deposit, or you might get higher interest rates. So it would be a good idea to consult with a professional, but that would also come with additional fees.

Lastly, you should remember that foreign buyers may be subject to more rigorous identity checks. So you'll have to make sure you have all the required documents like ID and proof of address.

S$1,000,000 (or US$779,000)

Source: redfin

With S$1 million, you could own this 1-bedroom condo in downtown LA spanning 1,130 sq ft. Inside, you'll find an open-plan layout with polished concrete floors, soaring ceilings, and wall-to-wall windows offering panoramic south-facing city views. You also get an assigned parking space with an EV charger in the attached garage. Amenities include a rooftop pool, sun deck, spa, fitness centre, lobby with 24/7 reception and security, landscaped courtyard, dog area, extra laundry facilities, storage options, and secure on-site parking.

Pros:

One of the biggest upsides is the exceptionally high demand for rental properties in LA. With consistently high occupancy rates and the ability to charge premium rents in sought-after neighbourhoods, you're looking at reliable cash flow backed by strong rental demand, partially due to students and young professionals who need to stay close to universities and creative industries.

Los Angeles also sits atop a strong economic base, anchored by Fortune 500 firms, a booming startup scene, and large-scale infrastructure projects. So think public transit expansions and downtown revitalisation. These will help with long-term property values.

LA's reputation as the heart of entertainment tourism is an added plus. Hollywood attracts tourists, many of whom book short-term rentals like Airbnb. This is a solid perk for those who want to generate passive income when they are not using their holiday home.

Then there's the appreciation potential, which has been solid historically. Over the five years from November 2018 to November 2023, LA home prices rose by about 46%, averaging around 9.2% per year, a track record for long-term investors.

For those who qualify, LA also offers various tax incentives and exemptions that can cut some costs. For instance, seniors and individuals with disabilities may be eligible for an exemption from their electric and other utility bills.

Cons:

LA has plenty of environmental regulations and legislation that you need to pay attention to. For example, you can't turn your investment properties into short-term vacation rentals unless you can prove that you reside in the home for at least six months of the year. So if you want to generate rental income, your best bet is to find tenants who need a long-term stay. Otherwise, you risk getting fined.

Another thing you need to worry about is the risk of natural disasters. Earthquakes and wildfires are real threats in California. So if your property is located in an area that is more prone to them, it might affect the property's value. Of course, you can also get insurance to protect the home from potential damage, but premiums for such hazards can be quite expensive.

But what's more concerning is the market volatility. Although LA properties tend to have high value, prices have been seeing sporadic fluctuations since the COVID-19 pandemic. This is a huge red flag for investors. It doesn't help that competition is fierce. With so many investors and local buyers eyeing desirable neighbourhoods, securing a good property can mean bidding wars. So good deals are hard to come by.

To make matters worse, interest rates in LA have been increasing since early 2022. With higher interest rates, borrowing becomes more costly, lowering your profits.

S$1,000,000

Source: PropNex

And of course, we need to talk about this S$1 million HDB. This 5-room unit in Bishan is beautifully renovated in a modern industrial-minimalist style. The original master bedroom has been combined with a common room to create a huge master suite, complete with a walk-in wardrobe and an ensuite bathroom. The open-plan living and dining area feels bright and airy. The kitchen comes with an island and modern appliances. Location-wise, it's just a 15-minute walk or three bus stops away from Bishan MRT station.

So how does the Singapore market compare to LA and London?

LA and London homes are attractive but they are not without challenges. LA's vulnerability to natural disasters like earthquakes adds financial and structural risks that Singapore buyers rarely face. And whole LA does have tax exemptions and incentives, they're often limited to specific groups such as seniors. Meanwhile, Singapore has housing schemes and grants that benefit most, if not all, citizens. London, on the other hand, pose certain restrictions for foreign buyers, despite the decreasing mortgage rates.

But let's be real for a second. Singapore does have high property prices, perhaps even more than LA and London. Even with London's recent stamp duty rate hikes, Singapore's are still higher.

Singapore's market is far more regulated and stable, thanks to the government's proactive measures and housing policies. They make sure that the growth is at a reasonable pace and that the market remains resilient even through global and economic downturns. Whereas LA and London tend to experience sharper swings due to economic shifts or political changes.

LA and London both offer great investment potential. And if you're looking to invest overseas, they're definitely worth looking into.

But if you're buying your first property, honestly, Singapore's market is the safest place to start. In the long run, market stability and consistent growth are worth more than quick gains in volatile markets.

So, if you had a spare S$1,000,000, which property would you buy?

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