Investing in 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 be sure 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 great advantage by entering the property market and generating a second income from rental yields associated with putting their cash on your bottom line. Based on the current market, I would advise may keep a lookout virtually any good investment property where prices have dropped an estimated 10% rather than putting it in a fixed deposit which pays three.5% and does not hedge against inflation which currently stands at 5.7%.

In this aspect, my investors and I use the same page – we prefer to take advantage of the current low interest rate 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 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 furthermore outperforms dividend returns from stocks.

Even though prices of private properties have continued to rise despite the economic uncertainty, we are able to access that the effect of the cooling measures have cause a slower rise in prices as in order to 2010.

Currently, we are able to access that although property prices are holding up, sales start to stagnate. I will attribute this for the following 2 reasons:

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

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

I would advise investors to view their jade scape 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 the longer term and increased 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 in addition to the residential segment (such as New Launches & Resales), they might also consider purchasing shophouses which likewise might help generate passive income; and are not subject to the recent government cooling measures prefer the 16% SSD and 40% downpayment required on homes.

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