Within Singapore Properties

“It is not calling it 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 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 boon by entering the property market and generating residual income from rental yields rather than putting their cash staying with you. Based on the current market, I would advise they will keep a lookout virtually any good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays .5% and does not hedge against inflation which currently stands at simple.7%.

In this aspect, jade scape my investors and I take presctiption the same page – we prefer to take advantage of the current low rate 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 as high as $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 increase despite the economic uncertainty, we can see that the effect of the cooling measures have cause a slower rise in prices as in comparison to 2010.

Currently, we look at that although property prices are holding up, sales start to stagnate. Let me attribute this on 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 in order to 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 time and boost in value because of the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest some other types of properties besides the residential segment (such as New Launches & Resales), they furthermore consider inside shophouses which likewise assist generate passive income; are usually not controlled by the recent government cooling measures prefer the 16% SSD and 40% downpayment required on homes.

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