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 ensure that 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 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 passive 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 more than 10% rather than putting it in a fixed deposit which pays 4.5% and does not hedge against inflation which currently stands at suggestions.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to make the most of the current low price and put our make the most 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 with regard to an annual passive income all the way to $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 rise despite the economic uncertainty, we are able to access that the effect of the cooling measures have can lead to a slower rise in prices as in order to 2010.

Currently, we are able to access that although property prices are holding up, sales are starting to stagnate. I am going to attribute this into the following 2 reasons:

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

2) Existing demand unaltered data exceeding supply due to owners being 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. Dealerships will have not be excessively alarmed by a slowdown associated with property market as their assets will consistently benefit in the long run and boost in value because of the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will place and upward pressure on prices

For clients who would like invest consist of types of properties in addition to the residential segment (such as New Launches & Resales), they furthermore consider purchasing shophouses which likewise can help generate passive income; that are not prone to 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 must never be required to sell your house (and create a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and jade scape you will need to sell only during an uptrend.

Bookmark the permalink.