Inside Singapore Properties

“It is not in case you 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 will need 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 gift by entering the property market and generating a second income from rental yields regarding putting their cash in the bank. Based on the current market, I would advise may keep a lookout for good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays 4.5% 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 make the most of the current low pace and put our make the most property assets to produce a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of of up to $1500 after off-setting mortgage costs. This equates for annual passive income up to $18 000 per annum which easily beats returns from fixed deposits plus outperforms dividend returns from stocks.

Even though prices of private properties have continued to increase despite the economic uncertainty, we can easily see that the effect of the cooling measures have result in a slower rise in prices as when compared with 2010.

Currently, we observe 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 less expensive prices and jade scape buyers’ unwillingness to commit to a higher charges.

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

I would advise investors to view their Singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown in the property market as their assets will consistently benefit in over time and trend 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 clients who would like invest some other types of properties apart from the residential segment (such as New Launches & Resales), they likewise consider throughout shophouses which likewise assist generate passive income; and thus not at the mercy of the recent government cooling measures such as the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the significance of having ‘holding power’. You must never be required to sell your stuff (and make a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and it’s sell only during an uptrend.

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