Inside Singapore Properties

“It is not when you buy but when you sell that makes principal 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 for jade scape 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 instead of putting their cash in the bank. Based on the current market, I would advise these people keep a lookout for good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays 0.5% and does not hedge against inflation which currently stands at simple.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to take advantage of the current low price and put our take advantage 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 of up to $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 can see that the effect of the cooling measures have can lead to a slower rise in prices as in comparison to 2010.

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

1) Many owners’ unwillingness to sell at less expensive costs and buyers’ unwillingness to commit with 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 rise in prices.

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

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest some other types of properties besides the residential segment (such as New Launches & Resales), they may also consider investing in shophouses which likewise can help generate passive income; that are not at the mercy of the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the significance of having ‘holding power’. You must never be expected to sell your stuff (and develop a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and require to sell only during an uptrend.

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