Investing in Singapore Properties

“It is not when you buy but when you sell that makes the gap 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 with 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 passive income from rental yields associated with putting their cash in the bank. Based on the current market, I would advise they will 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 suggestions.7%.

In this aspect, my investors and I take prescription the same page – we prefer to reap the benefits the current low interest rate and put our profit 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 as high as $1500 after off-setting mortgage costs. This equates to an annual passive income as high as $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 can see 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 start to stagnate. I’m going to attribute this towards following 2 reasons:

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

2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently in order to a increase 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 each morning property market as their assets will consistently benefit in over time and increased value because of the 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 clients who would like invest in other 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; and therefore not controlled by the recent government cooling measures like the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the value of having ‘holding power’. You should never be forced to sell your property (and create a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and you will need to sell only during an uptrend.