Investing in Singapore Properties

“It is not when you buy but when you sell that makes the difference to your profit”.

Hence I consistently advise my investors to be certain 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 need to pay if they sell their property before 4 years.

Once they have determined the amount of finances they are willing to outlay, they will set themselves at a advantage 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 may keep a lookout any kind of good investment property where prices have dropped upwards of 10% rather than putting it in a fixed deposit which pays 4.5% 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 take advantage of 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 for annual passive income up to $18 000 per annum which easily beats returns from fixed deposits and also outperforms dividend returns from stocks.

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

Currently, we can see that although property prices are holding up, sales are beginning to stagnate. I’m going to attribute this into the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive costs and buyers’ unwillingness to commit to a higher the price tag.

2) Existing demand for properties exceeding supply due to owners being 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. They ought to not be excessively alarmed by a slowdown within property market as their assets will consistently benefit in over time and trend of value as a result of following:

a) Good governance in jade scape singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest consist of types of properties in addition to the residential segment (such as New Launches & Resales), they could also consider throughout shophouses which likewise might help generate passive income; are usually not at the mercy of the recent government cooling measures like the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the need for having ‘holding power’. You shouldn’t be forced to sell your stuff (and make a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and really sell only during an uptrend.