Within 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 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 great advantage by entering the property market and generating residual income from rental yields associated with putting their cash staying with you. Based on the current market, I would advise they will 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 .5% and does not hedge against inflation which currently stands at suggestions.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to reap the benefits of the current low pace 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 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 furthermore outperforms dividend returns from stocks.

Even though prices of private properties have continued to elevate despite the economic uncertainty, we could see that the effect of the cooling measures have can lead to a slower rise in prices as the actual 2010.

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

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

2) Existing demand for properties exceeding supply due to owners being in no hurry to sell, consequently resulting in a increase prices.

I would advise investors to view their Singapore property assets as long-term investments. Will need to not be excessively alarmed by a slowdown within property market as their assets will consistently benefit in the long term and increasing amount of value due to 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 various other types of properties aside from the residential segment (such as New Launches & Resales), jade scape they likewise consider throughout shophouses which likewise might help generate passive income; that are not subject to 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 shouldn’t be instructed to sell your house (and develop a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and really sell only during an uptrend.

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