Committing to Singapore Properties

“It is not an individual have buy but when you sell that makes principal 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 want 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 boon by entering the property market and generating residual income from rental yields rather than putting their cash in the bank. Based on the current market, I would advise these people 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 0.5% and does not hedge against inflation which currently stands at ideas.7%.

In this aspect, my investors and jade scape I take presctiption the same page – we prefer to probably the current low interest 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 as high as $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 plus outperforms dividend returns from stocks.

Even though prices of private properties have continued to rise despite the economic uncertainty, we could see that the effect of the cooling measures have can 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 starting to stagnate. Let me attribute this to the following 2 reasons:

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit together with higher charges.

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently resulting in a embrace 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 time and trend of 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 in other types of properties in addition to the residential segment (such as New Launches & Resales), they furthermore consider throughout shophouses which likewise might help generate passive income; that are 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 household (and make a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and require to sell only during an uptrend.

Bookmark the permalink.