Within 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 guantee 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 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 great advantage by entering the property market and generating a second income from rental yields associated with putting their cash staying with you. Based on the current market, I would advise may keep a lookout any kind of good investment property where prices have dropped an estimated 10% rather than putting it in a fixed deposit which pays three.5% and jade scape 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 probably the current low fee and put our money 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 up to $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 additionally the outperforms dividend returns from stocks.

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

Currently, we look at 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 affordable prices and buyers’ unwillingness to commit to a higher value tag.

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

I would advise investors to view their Singapore property assets as long-term investments. Really should not be excessively alarmed by a slowdown associated with property market as their assets will consistently benefit in the longer term and increasing amount of value due to the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest various other types of properties apart from the residential segment (such as New Launches & Resales), they likewise consider buying shophouses which likewise can help generate passive income; and thus not depending upon the recent government cooling measures prefer the 16% SSD and 40% downpayment required on residential properties.

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

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