Committing to 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 guantee 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 have 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 gift by entering the property market and generating a second income from rental yields regarding putting their cash secured. Based on the current market, I would advise these people keep a lookout any kind of good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays three.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 money in 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 with regard to an 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 elevate despite the economic uncertainty, we notice that the effect of the cooling measures have caused a slower rise in prices as the actual 2010.

Currently, we look at that although property prices are holding up, sales are starting to stagnate. I’m going to attribute this towards following 2 reasons:

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

2) Existing demand for properties exceeding supply due to owners being in no hurry to sell, consequently in order to a rise in 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 jade scape increased value as a result of following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For clients who would like invest various other types of properties aside from the residential segment (such as New Launches & Resales), they may also consider throughout shophouses which likewise can help generate passive income; and are not depending upon the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the significance of having ‘holding power’. You shouldn’t ever be made to sell your stuff (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.