Inside 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 ensure 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 would have 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 boon by entering the property market and generating residual income from rental yields instead of 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 upwards of 10% rather than putting it in a fixed deposit which pays 0.5% 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 make the most of the current low fee and put our take advantage property assets to generate 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 to an annual passive income up to $18 000 per annum which easily beats returns from fixed deposits as well outperforms dividend returns from stocks.

Even though prices of private properties have continued to despite the economic uncertainty, we could see that the effect of the cooling measures have lead to 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. I’m going to attribute this to the following 2 reasons:

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

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently resulting in 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 each morning property market as their assets will consistently benefit in over time and increase in value as a result of following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and upward pressure on prices

For buyers who would like invest consist of types of properties apart from the residential segment (such as New Launches & Resales), they furthermore consider buying shophouses which likewise might help generate passive income; and are not prone to the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.

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

Posted by jennifer