Investing in Singapore Properties

“It is not calling it buy but when you sell that makes learn to your profit”.

Hence I consistently advise my investors to be sure 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 need 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 boon by entering the property market and generating passive income from rental yields rather than putting their cash on your bottom line. Based on the current market, I would advise they keep a lookout regarding any good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays two.5% and does not hedge against inflation which currently stands at 5.7%.

In this aspect, my investors and I take prescription the same page – we prefer to make the most of the current low fee and put our benefit property assets to produce 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 with regard to an annual passive income as high 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 elevate despite the economic uncertainty, we notice that the effect of the cooling measures have cause a slower rise in prices as in comparison to 2010.

Currently, we observe that although property prices are holding up, sales are starting to stagnate. I am going to attribute this for the following 2 reasons:

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

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

I would advise investors to view their Singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown associated with property market as their assets will consistently benefit in the long term and increasing amount of value as a result of following:

a) Good governance in jade scape singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and upward pressure on prices

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

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