Investing in Singapore Properties

“It is not an individual have buy but when you sell that makes the gap 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 must 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 passive income from rental yields regarding putting their cash on your bottom line. Based on the current market, I would advise that they keep a lookout virtually any good investment property where prices have dropped very 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 take presctiption the same page – we prefer to take advantage of the current low pace 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 as high as $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 additionally the outperforms dividend returns from stocks.

Even though prices of private properties have continued to elevate despite the economic uncertainty, we notice that the effect of the cooling measures have caused a slower rise in prices as compared to 2010.

Currently, we can see that although property prices are holding up, sales are beginning to stagnate. Let me attribute this on the following 2 reasons:

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

2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently leading to 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 each morning property market as their assets will consistently benefit in time and boost in value due to 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 besides the residential segment (such as New Launches & Resales), they may also consider buying shophouses which likewise might help generate passive income; are usually not at the mercy of the recent government cooling measures like the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the need for having ‘holding power’. You shouldn’t be instructed to sell household (and develop 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.