Committing to Singapore Properties

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

Hence I consistently advise my investors to guantee 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 must 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 great advantage by entering the property market and generating passive income from rental yields associated with putting their cash in the bank. Based on the current market, I would advise that they keep a lookout for any good investment property where prices have dropped an estimated 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 use the same page – we prefer to make the most of the current low fee 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 of up to $1500 after off-setting mortgage costs. This equates for annual passive income 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 go up despite the economic uncertainty, we could see that the effect of the cooling measures have can lead to a slower rise in prices as in comparison to 2010.

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

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

2) Existing demand for properties exceeding supply due to owners finding yourself in no hurry to sell, consequently in order to a increase 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 each morning property market as their assets will consistently benefit in the long term and increase in value as a result of following:

a) Good governance in jade scape singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and upward pressure on prices

For clients who would like invest consist of types of properties besides the residential segment (such as New Launches & Resales), they might also consider inside shophouses which likewise might help generate passive income; and are not depending upon 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 should never be required to sell your property (and make a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and you should sell only during an uptrend.

Bookmark the permalink.