Committing to Singapore Properties

“It is not an individual have buy but when you sell that makes learn 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 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 compared to putting their cash staying with you. Based on the current market, I would advise these people keep a lookout regarding any good investment property where prices have dropped upwards of 10% rather than putting it in a fixed deposit which pays three.5% and does not hedge against inflation which currently stands at ideas.7%.

In this aspect, my investors and I take prescription the same page – we prefer to reap the benefits of the current low rate 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 a whole lot $1500 after off-setting mortgage costs. This equates with regard to an annual passive income as high as $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 rise despite the economic uncertainty, we are able to access that the effect of the cooling measures have lead to a slower rise in prices as compared to 2010.

Currently, we observe that although property prices are holding up, sales are beginning to stagnate. I’m going to attribute this for the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive costs and buyers’ unwillingness to commit to a higher the price tag.

2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently resulting in a increase 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 in the property market as their assets will consistently benefit in over time and boost in value due to the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and upward pressure on prices

For clients who would like invest consist of types of properties besides the residential segment (such as New Launches & Resales), they furthermore consider purchasing shophouses which likewise can help generate passive income; and therefore not depending upon the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the importance of having ‘holding power’. You shouldn’t be required to sell your house (and make a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and really sell only during an uptrend.