Within Singapore Properties

“It is not when you buy but when you sell that makes the difference to your profit”.

Hence I consistently advise my investors to take care that they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after taking into consideration the 4-year Seller’s Stamp Duty (SSD) that they will have to pay if they sell their property before 4 years.

Once they have determined the amount of finances they are willing to outlay, they will set themselves at a advantage by entering the property market and generating residual income from rental yields compared to putting their cash in the bank. Based on the current market, I would advise these people keep a lookout for any good investment property where prices have dropped an estimated 10% rather than putting it in a fixed deposit which pays three.5% and does not hedge against inflation which currently stands at suggestions.7%.

In this aspect, my investors and I use the same page – we prefer to reap the benefits the current low rate and put our make the most property assets to produce a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of up to $1500 after off-setting mortgage costs. This equates a good annual passive income as high as $18 000 per annum which easily beats returns from fixed deposits and also outperforms dividend returns from stocks.

Even though prices of private properties have continued to despite the economic uncertainty, we are able to access that the effect of the cooling measures have result in a slower rise in prices as in comparison to 2010.

Currently, we look at that although property prices are holding up, sales start to stagnate. Let me attribute this for the following 2 reasons:

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit together with higher value tag.

2) Existing demand for properties exceeding supply due to owners finding yourself in no hurry to sell, consequently in order to a embrace prices.

I would advise investors to view their Singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown each morning property market as their assets will consistently benefit in over time and increase in value due to the following:

a) Good governance in jade scape singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest in other types of properties apart from the residential segment (such as New Launches & Resales), they could also consider buying shophouses which likewise might help generate passive income; and therefore not subject to the recent government cooling measures like the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the value of having ‘holding power’. Never be forced to sell your property (and make a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and require to sell only during an uptrend.