Inside Singapore Properties

“It is not in case you buy but when you sell that makes learn to your profit”.

Hence I consistently advise my investors to ensure 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 four 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 a second income from rental yields instead of putting their cash secured. Based on the current market, I would advise may keep a lookout for good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays .5% and does not hedge against inflation which currently stands at ideas.7%.

In this aspect, my investors and I are on the same page – we prefer to reap the benefits the current low pace and put our profit in 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 many as $1500 after off-setting mortgage costs. This equates with regard to an annual passive income all the way to $18 000 per annum which easily beats returns from fixed deposits furthermore outperforms dividend returns from stocks.

Even though prices of private properties have continued to rise despite the economic uncertainty, we can see that the effect of the cooling measures have result in a slower rise in prices as in order to 2010.

Currently, we are able to access that although property prices are holding up, sales are beginning to stagnate. I’m going to attribute this to the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive prices and buyers’ unwillingness to commit to a higher the price tag.

2) Existing demand for properties exceeding supply due to owners being in no hurry to sell, consequently leading to a improve prices.

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

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For clients who would like invest various other types of properties aside from the residential segment (such as New Launches & Resales), they could also consider investing in shophouses which likewise will help generate passive income; that are not controlled by the recent government cooling measures such as the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the need for having ‘holding power’. You shouldn’t ever be expected to sell household (and make a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and jade scape it’s sell only during an uptrend.

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