Throughout 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 for the 4-year Seller’s Stamp Duty (SSD) that they must 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 compared to putting their cash staying with you. Based on the current market, I would advise that they keep a lookout regarding any 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 simple.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to reap the benefits the current low fee 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 as many as $1500 after off-setting mortgage costs. This equates a good 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 despite the economic uncertainty, we notice that the effect of the cooling measures have caused a slower rise in prices as the actual 2010.

Currently, we can see that although property prices are holding up, sales start to stagnate. Let me attribute this into the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive costs and buyers’ unwillingness to commit together with higher value tag.

2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently resulting in a rise in 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 in the property market as their assets will consistently benefit in the long term and increased value as a result of following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and jade scape upward pressure on prices

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

I cannot help but stress the value of having ‘holding power’. Never be instructed to sell house (and create 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.