Investing in Singapore Properties

“It is not when you buy but when you sell that makes learn 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 gift by entering the property market and generating a second income from rental yields rather than putting their cash staying with you. Based on the current market, I would advise they keep a lookout virtually any 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 simple.7%.

In this aspect, my investors and I are on the same page – we prefer to reap the benefits of the current low price and put our take advantage 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 many as $1500 after off-setting mortgage costs. This equates for annual passive income as much 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 go up despite the economic uncertainty, we could see that the effect of the cooling measures have can lead to a slower rise in prices as in order to 2010.

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

1) Many owners’ unwillingness to sell at lower prices and buyers’ unwillingness to commit to some higher charges.

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently leading to a enhance 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 associated with property market as their assets will consistently benefit in the long run and boost in 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 some other types of properties in addition to the residential segment (such as New Launches & Resales), they may also consider investing in shophouses which likewise might help generate passive income; and are not depending upon the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the need for having ‘holding power’. You must never be required to sell household (and make a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and you will need to sell only during an uptrend.