Investing in Singapore Properties

“It is not when you buy but when you sell that makes the gap 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 with 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 advantage by entering the property market and generating second income from rental yields instead of putting their cash staying with you. Based on the current market, I would advise that they keep a lookout for 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 ideas.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to reap the benefits the current low rate and put our take advantage 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 many as $1500 after off-setting mortgage costs. This equates with regard to an annual passive income as much as $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 go up despite the economic uncertainty, we can see that the effect of the cooling measures have can lead to a slower rise in prices as the actual 2010.

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

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit with a higher value tag.

2) Existing demand for properties exceeding supply due to owners finding yourself in no hurry to sell, consequently in order to a rise in prices.

I would advise investors to view their jade scape singapore property assets as long-term investments. Dealerships will have 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 furthermore consider inside shophouses which likewise can help generate passive income; and thus not at the mercy of the recent government cooling measures like the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the value of having ‘holding power’. You shouldn’t ever be forced to sell your property (and create a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and you should sell only during an uptrend.