Investing in Singapore Properties

“It is not in case you buy but when you sell that makes the gap 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 will have 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 second income from rental yields regarding putting their cash staying with you. Based on the current market, I would advise that they keep a lookout any kind of 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 probably the current low price and put our profit 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 as high as $1500 after off-setting mortgage costs. This equates with regard to an annual passive income as much as $18 000 per annum which easily beats returns from fixed deposits furthermore outperforms dividend returns from stocks.

Even though prices of private properties have continued to go up despite the economic uncertainty, we notice that the effect of the cooling measures have caused a slower rise in prices as in comparison to 2010.

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

1) Many owners’ unwillingness to sell at lower prices and buyers’ unwillingness to commit together with higher charges.

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently in order to a enhance 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 the long term and boost in value as a result of following:

a) Good governance in Singapore

b) Land scarcity in jade scape singapore, and,

c) Inflation which will place and upward pressure on prices

For buyers who would like invest in other types of properties apart from the residential segment (such as New Launches & Resales), they furthermore consider buying shophouses which likewise support generate passive income; and thus not controlled by the recent government cooling measures similar to the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the value of having ‘holding power’. You must never be expected to sell your stuff (and create a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and it’s sell only during an uptrend.