Throughout Singapore Properties

“It is not an individual have buy but when you sell that makes distinction is the successful 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 taking into consideration 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 gift by entering the property market and generating a second income from rental yields instead of putting their cash secured. Based on the current market, I would advise that they keep a lookout any kind of good investment property where prices have dropped upwards of 10% rather than putting it in a fixed deposit which pays three.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 take advantage of the current low rate and put our take advantage property assets to produce 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 plus outperforms dividend returns from stocks.

Even though prices of private properties have continued to increase despite the economic uncertainty, we notice that the effect of the cooling measures have cause a slower rise in prices as when compared with 2010.

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

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

2) Existing demand for properties 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. They should not be excessively alarmed by a slowdown each morning property market as their assets will consistently benefit in time and boost in value as a result of 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 apart from the residential segment (such as New Launches & Resales), they might also consider inside shophouses which likewise assist generate passive income; that are not controlled by the recent government cooling measures like the 16% SSD and 40% downpayment required on homes.

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

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