Committing to Singapore Properties

“It is not when you buy but when you sell that makes learn 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 with the 4-year Seller’s Stamp Duty (SSD) that they will want to 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 advantage by entering the property market and generating residual income from rental yields compared to putting their cash on your bottom line. Based on the current market, I would advise these people keep a lookout for good investment property where prices have dropped an estimated 10% rather than putting it in a fixed deposit which pays .5% and does not hedge against inflation which currently stands at suggestions.7%.

In this aspect, my investors and I use the same page – we prefer to make the most of the current low 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 up to $1500 after off-setting mortgage costs. This equates 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 elevate despite the economic uncertainty, we can easily see that the effect of the cooling measures have lead to a slower rise in prices as when compared with 2010.

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

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

I would advise investors to view their jade scape singapore property assets as long-term investments. Dealerships will have not be excessively alarmed by a slowdown in the property market as their assets will consistently benefit in the longer term 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 various other types of properties in addition to the residential segment (such as New Launches & Resales), they likewise 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 importance of having ‘holding power’. You must never be made to sell household (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.