“It is not calling it 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 would 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 on your bottom line. Based on the current market, I would advise they will keep a lookout for any good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays .5% and does not hedge against inflation which currently stands at simple.7%.

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

Even though prices of private properties have continued to increase despite the economic uncertainty, we notice that the effect of the cooling measures have cause a slower rise in prices as in comparison to 2010.

Currently, we cane easily see that although property prices are holding up, sales are starting to stagnate. I’m going to attribute this on the following 2 reasons:

1) Many owners’ unwillingness to sell at lower prices and buyers’ unwillingness to commit into a higher value tag.

2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently resulting in a increase prices.

I would advise investors to view their Singapore property assets as long-term investments. They ought to not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in the longer term and boost in value due to the following:

a) Good governance in jade scape singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and upward pressure on prices

For clients who would like invest various other types of properties besides the residential segment (such as New Launches & Resales), they might also consider purchasing shophouses which likewise support generate passive income; and are not prone to the recent government cooling measures similar to the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the need for having ‘holding power’. You must never be made to sell your property (and develop a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and it’s sell only during an uptrend.

Investing in Singapore Properties

You May Also Like