Committing to 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 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 residual income from rental yields associated with putting their cash staying with you. Based on the current market, I would advise that they keep a lookout regarding any good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays two.5% and does not hedge against inflation which currently stands at ideas.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to reap the benefits of the current low fee and put our benefit property assets to generate a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of up to $1500 after off-setting mortgage costs. This equates for annual passive income of up to $18 000 per annum which easily beats returns from fixed deposits as well outperforms dividend returns from stocks.

Even though prices of private properties have continued to despite the economic uncertainty, we can see that the effect of the cooling measures have can lead to a slower rise in prices as the actual 2010.

Currently, jade scape we look at that although property prices are holding up, sales are beginning to stagnate. Let me attribute this to the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive prices and buyers’ unwillingness to commit to a higher promoting.

2) Existing demand unaltered data 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 ought to not be excessively alarmed by a slowdown each morning property market as their assets will consistently benefit in time and increasing amount of value because of 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 in other types of properties apart from the residential segment (such as New Launches & Resales), they may also consider investing in shophouses which likewise support generate passive income; and thus not controlled by 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 should never be forced to sell your property (and make a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and require to sell only during an uptrend.