Inside 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 be sure they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after with the 4-year Seller’s Stamp Duty (SSD) that they will have 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 gift by entering the property market and generating a second income from rental yields instead of putting their cash in the bank. Based on the current market, I would advise may keep a lookout virtually any good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays two.5% and 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 reap the benefits 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 as high as $1500 after off-setting mortgage costs. This equates a good annual passive income as high as $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 elevate despite the economic uncertainty, we can see that the effect of the cooling measures have cause a slower rise in prices as when compared with 2010.

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

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

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently leading to a rise in prices.

I would advise investors to view their Singapore property assets as long-term investments. Dealerships will have not be excessively alarmed by a slowdown in the property market as their assets will consistently benefit in over time and trend of value due to the following:

a) Good governance in Singapore

b) Land scarcity in jade scape singapore, and,

c) Inflation which will set and upward pressure on prices

For clients who would like invest various other types of properties besides the residential segment (such as New Launches & Resales), they likewise consider inside shophouses which likewise might help generate passive income; are usually not controlled by the recent government cooling measures such as the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the need for having ‘holding power’. Never be instructed to sell your stuff (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.

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