Throughout Singapore Properties

“It is not calling it buy but when you sell that makes distinction is the successful 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 taking into consideration 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 advantage by entering the property market and generating passive income from rental yields instead of putting their cash in the bank. Based on the current market, I would advise they keep a lookout virtually 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 suggestions.7%.

In this aspect, my investors and I are on the same page – we prefer to reap the benefits 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 a whole lot $1500 after off-setting mortgage costs. This equates for annual passive income of up 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 despite the economic uncertainty, we are able to access that the effect of the cooling measures have result in a slower rise in prices as when compared with 2010.

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

1) Many owners’ unwillingness to sell at more affordable prices and buyers’ unwillingness to commit to some higher the price tag.

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

I would advise investors to view their Singapore property assets as long-term investments. Really should not be excessively alarmed by a slowdown within property market as their assets will consistently benefit in the longer term and increased value because of the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, jade scape and,

c) Inflation which will set and upward pressure on prices

For clients who would like invest in other types of properties aside from the residential segment (such as New Launches & Resales), they might also consider buying shophouses which likewise support generate passive income; and are not subject to the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.

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