Within Singapore Properties

“It is not in case you buy but when you sell that makes the difference 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 would 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 second income from rental yields associated with putting their cash in the bank. Based on the current market, I would advise they keep a lookout any kind of good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays two.5% and does not hedge against inflation which currently stands at simple.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to make the most of the current low interest rate and put our profit in property assets to generate a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of of up to $1500 after off-setting mortgage costs. This equates a good annual passive income as much as $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 increase despite the economic uncertainty, we notice that the effect of the cooling measures have caused a slower rise in prices as in order to 2010.

Currently, we cane easily see that although property prices are holding up, sales start to stagnate. I’m going to attribute this towards following 2 reasons:

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit into a higher charges.

2) Existing demand unaltered data 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 Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For jade scape clients who would like invest consist of types of properties besides the residential segment (such as New Launches & Resales), they might also consider purchasing shophouses which likewise will help generate passive income; and are not prone to the recent government cooling measures a lot 16% SSD and 40% downpayment required on homes.

I cannot help but stress the importance of having ‘holding power’. Never be instructed to sell your property (and make a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and you will need to sell only during an uptrend.