Investing in Singapore Properties

“It is not calling it buy but when you sell that makes the difference to your profit”.

Hence I consistently advise my investors to guantee 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 must 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 rather than putting their cash in the bank. Based on the current market, I would advise they keep a lookout regarding any good investment property where prices have dropped upwards of 10% rather than putting it in a fixed deposit which pays two.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 reap the benefits of the current low pace and put our benefit property assets to produce a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of a whole lot $1500 after off-setting mortgage costs. This equates a good annual passive income of up to $18 000 per annum which easily beats returns from fixed deposits as well outperforms dividend returns from stocks.

Even though prices of private properties have continued to despite the economic uncertainty, we notice that the effect of the cooling measures have can lead to a slower rise in prices as in comparison to 2010.

Currently, we look at that although property prices are holding up, sales are beginning to stagnate. I’m going to attribute this into the following 2 reasons:

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

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

I would advise investors to view their Singapore property assets as long-term investments. Will need to not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in over time and increase in 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 clients who would like invest in other types of properties aside from the residential segment (such as New Launches & Resales), they likewise consider investing in shophouses which likewise can help generate passive income; and therefore not controlled by the recent government cooling measures a lot 16% SSD and 40% downpayment required on homes.

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