Inside Singapore Properties

“It is not calling it buy but when you sell that makes principal 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 for the 4-year Seller’s Stamp Duty (SSD) that they will need 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 boon by entering the property market and generating a second income from rental yields instead of putting their cash on your bottom line. Based on the current market, I would advise these people keep a lookout any kind of good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays three.5% and does not hedge against inflation which currently stands at 5.7%.

In this aspect, my investors and I take prescription the same page – we prefer to make the most of the current low pace 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 high as $1500 after off-setting mortgage costs. This equates a good annual passive income of up to $18 000 per annum which easily beats returns from fixed deposits plus outperforms dividend returns from stocks.

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

Currently, we observe that although property prices are holding up, sales are starting to stagnate. I will attribute this to the following 2 reasons:

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit to some higher the price tag.

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently in order to a enhance 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 associated with property market as their assets will consistently benefit in over time and boost in value as a result of 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 various other types of properties apart from the residential segment (such as New Launches & Resales), they might also consider purchasing shophouses which likewise support generate passive income; and are not subject to the recent government cooling measures such as the 16% SSD and 40% downpayment required on residential properties.

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