Investing in Singapore Properties

“It is not calling it buy but when you sell that makes the gap 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 taking into consideration the 4-year Seller’s Stamp Duty (SSD) that they would have to pay if they sell their property before 4 years.

Once they have determined the amount of finances they are willing to outlay, they will set themselves at a boon by entering the property market and generating passive 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 for 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 simple.7%.

In this aspect, my investors and I are on the same page – we prefer to reap the benefits the current low price 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 with regard to an annual passive income of up 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 go up despite the economic uncertainty, we can see that the effect of the cooling measures have result in a slower rise in prices as when compared with 2010.

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

1) Many owners’ unwillingness to sell at less expensive prices and buyers’ unwillingness to commit to some higher the price tag.

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently leading to a increase prices.

I would advise investors to view their Singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in the longer term and increased 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 buyers who would like invest consist of types of properties in addition to the residential segment (such as New Launches & Resales), they likewise consider investing in shophouses which likewise might help generate passive income; and therefore not at the mercy of the recent government cooling measures like the 16% SSD and jade scape 40% downpayment required on homes.

I cannot help but stress the significance of having ‘holding power’. You shouldn’t be instructed to sell your stuff (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.