Investing in Singapore Properties

“It is not in case you buy but when you sell that makes distinction is the successful 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 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 advantage by entering the property market and generating passive income from rental yields rather than putting their cash staying with you. Based on the current market, I would advise they will keep a lookout for 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 some.7%.

In this aspect, jade scape my investors and I take any presctiption the same page – we prefer to reap the benefits 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 a whole lot $1500 after off-setting mortgage costs. This equates to an annual passive income of up to $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 elevate despite the economic uncertainty, we can see that the effect of the cooling measures have can lead to a slower rise in prices as when compared with 2010.

Currently, we observe that although property prices are holding up, sales are beginning to stagnate. I’m going to attribute this for the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive prices and buyers’ unwillingness to commit together with higher price.

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently leading to a improve 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 associated with property market as their assets will consistently benefit in the long term and increasing amount of 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 besides the residential segment (such as New Launches & Resales), they might also consider inside shophouses which likewise can help generate passive income; and are not prone 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’. You must never be expected to sell house (and make a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and require to sell only during an uptrend.