Inside 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 be certain they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after for the 4-year Seller’s Stamp Duty (SSD) that they must 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 boon by entering the property market and generating passive income from rental yields associated with putting their cash secured. Based on the current market, I would advise that they keep a lookout regarding any good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays 0.5% and does not hedge against inflation which currently stands at ideas.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to reap the benefits of the current low rate and put our money 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 for annual passive income all the way to $18 000 per annum which easily beats returns from fixed deposits as well outperforms dividend returns from stocks.

Even though prices of private properties have continued to elevate despite the economic uncertainty, we can easily see that the effect of the cooling measures have can lead to a slower rise in prices as when compared with 2010.

Currently, we are able to access that although property prices are holding up, sales start to stagnate. I will attribute this on the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive prices and buyers’ unwillingness to commit with a higher promoting.

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

I would advise investors to view their jade scape singapore property assets as long-term investments. Will need to 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 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 likewise consider purchasing shophouses which likewise assist generate passive income; and are not controlled by the recent government cooling measures a lot 16% SSD and 40% downpayment required on homes.

I cannot help but stress the need for having ‘holding power’. You should never be instructed to sell your stuff (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.

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