Investing in Singapore Properties

“It is not calling it buy but when you sell that makes the difference to your profit”.

Hence I consistently advise my investors to be sure 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 want 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 great advantage by entering the property market and generating residual income from rental yields regarding putting their cash staying with you. Based on the current market, I would advise they keep a lookout any kind of good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays .5% and jade scape does not hedge against inflation which currently stands at suggestions.7%.

In this aspect, my investors and I take prescription the same page – we prefer to probably the current low interest rate and put our benefit property assets to produce a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of of up to $1500 after off-setting mortgage costs. This equates for annual passive income as much as $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 rise despite the economic uncertainty, we notice that the effect of the cooling measures have lead to a slower rise in prices as when compared with 2010.

Currently, we can see that although property prices are holding up, sales start to stagnate. Let me attribute this for the following 2 reasons:

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit together with higher price.

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. Will need to not be excessively alarmed by a slowdown within property market as their assets will consistently benefit in the long term and boost in value as a result of 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 aside from the residential segment (such as New Launches & Resales), they furthermore consider throughout shophouses which likewise assist generate passive income; and are not prone to the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the value of having ‘holding power’. You shouldn’t ever be instructed to sell your stuff (and create a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and it’s sell only during an uptrend.