Inside 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 guantee that they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after for the 4-year Seller’s Stamp Duty (SSD) that they will have 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 second income from rental yields rather than putting their cash secured. Based on the current market, I would advise these people keep a lookout for any good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays three.5% and does not hedge against inflation which currently stands at 5.7%.

In this aspect, my investors and I are on the same page – we prefer to probably the current low price 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 up to $1500 after off-setting mortgage costs. This equates with regard to an annual passive income up to $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 despite the economic uncertainty, we notice that the effect of the cooling measures have cause a slower rise in prices as in order to 2010.

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

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

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

I would advise investors to view their Singapore property assets as long-term investments. Will need to not be excessively alarmed by a slowdown each morning property market as their assets will consistently benefit in the long term and jade scape increase in value because of the 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 some other types of properties in addition to the residential segment (such as New Launches & Resales), they likewise consider purchasing shophouses which likewise can help generate passive income; and thus not subject to the recent government cooling measures similar to the 16% SSD and 40% downpayment required on residential properties.

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