Committing to Singapore Properties

“It is not when you buy but when you sell that makes principal 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 with the 4-year Seller’s Stamp Duty (SSD) that they will need 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 advantage 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 they will keep a lookout for any good investment property where prices have dropped upwards of 10% rather than putting it in a fixed deposit which pays two.5% and does not hedge against inflation which currently stands at some.7%.

In this aspect, my investors and I take prescription the same page – we prefer to probably the current low interest rate and put our make the most 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 all the way 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 despite the economic uncertainty, we are able to access that the effect of the cooling measures have can lead to a slower rise in prices as in comparison to 2010.

Currently, we look at 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 more affordable 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 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 in the property market as their assets will consistently benefit in time and increase in value as a result of following:

a) Good governance in Singapore

b) Land scarcity in Singapore, jade scape and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest various other types of properties in addition to the residential segment (such as New Launches & Resales), they furthermore consider throughout shophouses which likewise can help generate passive income; that are not prone to the recent government cooling measures a lot 16% SSD and 40% downpayment required on homes.

I cannot help but stress the need for having ‘holding power’. Never 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 you will need to sell only during an uptrend.