Investing in Singapore Properties

“It is not calling it buy but when you sell that makes learn 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 need 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 boon by entering the property market and generating residual 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 for any good investment property where prices have dropped very 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 presctiption the same page – we prefer to make the most of the current low pace and put our profit in property assets to produce a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of up to $1500 after off-setting mortgage costs. This equates to an annual passive income all the way to $18 000 per annum which easily beats returns from fixed deposits additionally the outperforms dividend returns from stocks.

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

Currently, we are able to access that although property prices are holding up, sales are beginning to stagnate. Let me attribute this towards following 2 reasons:

1) Many owners’ unwillingness to sell at lower prices and buyers’ unwillingness to commit into a higher price.

2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently resulting in a embrace prices.

I would advise investors to view their jade scape 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 over time and trend of value because of the 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 consist of types of properties besides the residential segment (such as New Launches & Resales), they may 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 residential properties.

I cannot help but stress the need for having ‘holding power’. You must never be required to sell house (and create a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and you will need to sell only during an uptrend.