Investing in Singapore Properties

“It is not calling it buy but when you sell that makes principal 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 must 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 a second income from rental yields associated with putting their cash secured. Based on the current market, I would advise that they keep a lookout for 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 some.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to reap the benefits of the current low price and put our make the most 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 many as $1500 after off-setting mortgage costs. This equates for annual passive income all the way to $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 rise 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 to the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive prices and buyers’ unwillingness to commit together with higher price.

2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently in order to a improve prices.

I would advise investors to view their Singapore property assets as long-term investments. They ought to not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in time and increasing amount of value because of the following:

a) Good governance in Singapore

b) Land scarcity in jade scape singapore, and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest in other types of properties apart from the residential segment (such as New Launches & Resales), they likewise consider throughout shophouses which likewise might help generate passive income; and therefore not prone to the recent government cooling measures such as the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the need for having ‘holding power’. You shouldn’t ever be instructed to sell household (and make a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and you will need to sell only during an uptrend.