Throughout Singapore Properties

“It is not when you buy but when you sell that makes the difference 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 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 advantage by entering the property market and generating a second income from rental yields compared to putting their cash staying with you. Based on the current market, I would advise that they keep a lookout virtually 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 5.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to probably the current low pace and put our money in property assets to generate a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of a whole lot $1500 after off-setting mortgage costs. This equates for jade scape 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 elevate despite the economic uncertainty, we can see that the effect of the cooling measures have result in a slower rise in prices as compared to 2010.

Currently, we look at that although property prices are holding up, sales start to stagnate. I am going to attribute this towards following 2 reasons:

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit to a higher charges.

2) Existing demand for properties exceeding supply due to owners being in no hurry to sell, consequently in order to a embrace prices.

I would advise investors to view their Singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown associated with property market as their assets will consistently benefit in over time and increase in value because of the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

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

I cannot help but stress the significance of having ‘holding power’. You shouldn’t be expected to sell your stuff (and make a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and it’s sell only during an uptrend.