Inside Singapore Properties

“It is not calling it buy but when you sell that makes principal to your profit”.

Hence I consistently advise my investors to be sure 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 must 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 boon by entering the property market and generating a second income from rental yields compared to putting their cash in the bank. Based on the current market, I would advise they will keep a lookout regarding any good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays three.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 take advantage of the current low fee 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 with regard to an annual passive income as much 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 elevate despite the economic uncertainty, we can see that the effect of the cooling measures have caused a slower rise in prices as the actual 2010.

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

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

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

I would advise investors to view their Singapore property assets as long-term investments. Will need to not be excessively alarmed by a slowdown in the property market as their assets will consistently benefit in the long run and increase in value because of the 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 various other types of properties aside from the residential segment (such as New Launches & Resales), they may also consider investing in shophouses which likewise can help generate passive income; and therefore not depending upon the recent government cooling measures such as the 16% SSD and 40% downpayment required on homes.

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