Inside Singapore Properties

“It is not in case you buy but when you sell that makes the difference to your profit”.

Hence I consistently advise my investors to ensure that they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after for the 4-year Seller’s Stamp Duty (SSD) that they must 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 great advantage by entering the property market and generating second income from rental yields regarding putting their cash secured. Based on the current market, I would advise that they keep a lookout for good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays .5% and does not hedge against inflation which currently stands at simple.7%.

In this aspect, my investors and I use the same page – we prefer to make the most of the current low interest rate and put our take advantage 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 with regard to an annual passive income of up 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 go up despite the economic uncertainty, we notice that the effect of the cooling measures have lead to a slower rise in prices as in order to 2010.

Currently, we are able to access 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 less expensive costs and buyers’ unwillingness to commit to a higher promoting.

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

I would advise investors to view their jade scape singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown within property market as their assets will consistently benefit in over time and increase in value as a result of following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and upward pressure on prices

For buyers who would like invest in other types of properties aside from the residential segment (such as New Launches & Resales), they could also consider throughout shophouses which likewise support generate passive income; and therefore not at the mercy of the recent government cooling measures prefer the 16% SSD and 40% downpayment required on homes.

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