Committing to Singapore Properties

“It is not an individual have buy but when you sell that makes the difference 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 four years.

Once they have determined the amount of finances they are willing to outlay, jade scape they will set themselves at a gift by entering the property market and generating a second income from rental yields compared to putting their cash staying with you. Based on the current market, I would advise they will keep a lookout virtually any good investment property where prices have dropped an estimated 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 presctiption the same page – we prefer to make the most of the current low pace 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 as high as $1500 after off-setting mortgage costs. This equates for annual passive income as high as $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 elevate despite the economic uncertainty, we are able to access that the effect of the cooling measures have lead to a slower rise in prices as in comparison to 2010.

Currently, we can see that although property prices are holding up, sales are starting to stagnate. I am going to attribute this towards following 2 reasons:

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

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 Singapore property assets as long-term investments. Really should not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in the long term and increase in value as a result of following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and upward pressure on prices

For buyers who would like invest consist of types of properties aside from the residential segment (such as New Launches & Resales), they furthermore consider throughout shophouses which likewise will help generate passive income; and thus not subject to the recent government cooling measures prefer the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the value of having ‘holding power’. You shouldn’t ever be required to sell your stuff (and develop a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and require to sell only during an uptrend.