Investing in Singapore Properties

“It is not an individual have buy but when you sell that makes the difference to your profit”.

Hence I consistently advise my investors to be certain they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after for the 4-year Seller’s Stamp Duty (SSD) that they will have 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 second income from rental yields associated with putting their cash on your bottom line. Based on the current market, I would advise that they keep a lookout regarding any good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays 4.5% and does not hedge against inflation which currently stands at some.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to take advantage of the current low fee and put our benefit 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 high 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 additionally the outperforms dividend returns from stocks.

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

Currently, we cane easily see that although property prices are holding up, sales start to stagnate. Let me attribute this on 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 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. Really should not be excessively alarmed by a slowdown within property market as their assets will consistently benefit in the long run and trend of value as a result of following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For clients who would like invest in other types of properties in addition to the residential segment (such as New Launches & Resales), they may also consider inside shophouses which likewise will help generate passive income; and therefore not depending upon 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 shouldn’t be made to sell your property (and create a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and jade scape require to sell only during an uptrend.