Investing in Singapore Properties

“It is not calling it buy but when you sell that makes the difference 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 want to 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 residual 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 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 some.7%.

In this aspect, my investors and I take prescription the same page – we prefer to reap the benefits the current low pace 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 with regard to an annual passive income all the way to $18 000 per annum which easily beats returns from fixed deposits and also 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 caused a slower rise in prices as the actual 2010.

Currently, we look at that although property prices are holding up, sales are beginning to stagnate. Let me attribute this for the following 2 reasons:

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

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

I would advise investors to view their jade scape singapore property assets as long-term investments. Will need to not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in time 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 some other types of properties apart from the residential segment (such as New Launches & Resales), they might also consider throughout shophouses which likewise support generate passive income; are usually not prone to the recent government cooling measures such as the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the importance of having ‘holding power’. You should never be made to sell your stuff (and develop a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and you should sell only during an uptrend.