Within Singapore Properties

“It is not calling it buy but when you sell that makes principal 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 with 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 regarding putting their cash staying with you. Based on the current market, I would advise may 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 5.7%.

In this aspect, jade scape my investors and I use the same page – we prefer to reap the benefits of the current low price and put our money in property assets to generate 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 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 go up 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 are able to access that although property prices are holding up, sales start 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 into a higher promoting.

2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently leading to a increase prices.

I would advise investors to view their Singapore property assets as long-term investments. Dealerships will have not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in over time and increasing amount of value because of the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For clients who would like invest various other types of properties aside from the residential segment (such as New Launches & Resales), they likewise consider inside shophouses which likewise support generate passive income; and thus not at the mercy of the recent government cooling measures similar to the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the need for having ‘holding power’. You shouldn’t be expected to sell your stuff (and create a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and require to sell only during an uptrend.