“It is not an individual have buy but when you sell that makes distinction is the successful 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 with 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 advantage by entering the property market and generating passive income from rental yields rather than putting their cash in the bank. Based on the current market, I would advise may keep a lookout any kind of good investment property where prices have dropped a great deal more 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 probably the current low pace and put our take advantage property assets to produce 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 a good annual passive income as much as $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 go up despite the economic uncertainty, we can see that the effect of the cooling measures have caused a slower rise in prices as in comparison to 2010.
Currently, we observe that although property prices are holding up, sales are beginning to stagnate. I will attribute this into the following 2 reasons:
1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit to a higher charges.
2) Existing demand for properties exceeding supply due to owners being in no hurry to sell, consequently resulting in a improve 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 associated with property market as their assets will consistently benefit in the long run and increased value because of the 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 some other types of properties aside from the residential segment (such as New Launches & Resales), they might also consider purchasing shophouses which likewise will help generate passive income; and therefore not prone to 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 must never be instructed to sell your stuff (and develop a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and require to sell only during an uptrend.