“It is not in case you buy but when you sell that makes principal 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 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 residual income from rental yields associated with putting their cash in the bank. Based on the current market, I would advise they will 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 three.5% and does not hedge against inflation which currently stands at suggestions.7%.

In this aspect, my investors and I take presctiption the same page – we prefer to make the most of the current low interest rate 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 up to $1500 after off-setting mortgage costs. This equates for annual passive income of up to $18 000 per annum which easily beats returns from fixed deposits and also outperforms dividend returns from stocks.

Even though prices of private properties have continued to increase despite the economic uncertainty, we could see that the effect of the cooling measures have result in a slower rise in prices as in comparison to 2010.

Currently, we can see that although property prices are holding up, sales are beginning to stagnate. Let me attribute this to the following 2 reasons:

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

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

I would advise investors to view their Singapore property assets as long-term investments. Really should not be excessively alarmed by a slowdown each morning property market as their assets will consistently benefit in the long run and increased value due to the following:

a) Good governance in Singapore

b) Land scarcity in jade scape singapore, and,

c) Inflation which will place and upward pressure on prices

For clients who would like invest in other types of properties apart from the residential segment (such as New Launches & Resales), they furthermore consider buying shophouses which likewise can help generate passive income; and therefore not at the mercy of the recent government cooling measures prefer the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the significance of having ‘holding power’. You should never be instructed to sell your stuff (and make a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and you should sell only during an uptrend.

Committing to Singapore Properties

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