Within Singapore Properties

“It is not in case you buy but when you sell that makes the gap to your profit”.

Hence I consistently advise my investors to take care that 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 advantage by entering the property market and generating passive income from rental yields instead of putting their cash secured. Based on the current market, I would advise they will keep a lookout virtually any good investment property where prices have dropped a great deal more 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 are on the same page – we prefer to make the most of the current low interest rate 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 a whole lot $1500 after off-setting mortgage costs. This equates a good annual passive income as much 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 despite the economic uncertainty, we can see that the effect of the cooling measures have cause a slower rise in prices as in comparison to 2010.

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

1) Many owners’ unwillingness to sell at less expensive costs and buyers’ unwillingness to commit to some higher promoting.

2) Existing demand unaltered data exceeding supply due to owners being 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 should not be excessively alarmed by a slowdown in the property market as their assets will consistently benefit in the longer term and increasing amount of value because of the 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 clients who would like invest consist of types of properties apart from the residential segment (such as New Launches & Resales), they furthermore consider throughout shophouses which likewise support generate passive income; that are not depending upon the recent government cooling measures like the 16% SSD and 40% downpayment required on residential properties.

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