Investing in Singapore Properties

“It is not in case you buy but when you sell that makes learn to your profit”.

Hence I consistently advise my investors to be sure 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 boon by entering the property market and generating passive income from rental yields regarding putting their cash on your bottom line. Based on the current market, I would advise they keep a lookout for good investment property where prices have dropped more than 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, jade scape my investors and I take presctiption the same page – we prefer to probably the current low pace and put our profit 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 as many as $1500 after off-setting mortgage costs. This equates a good annual passive income all the way 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 go up despite the economic uncertainty, we could see that the effect of the cooling measures have result in a slower rise in prices as when compared with 2010.

Currently, we can see that although property prices are holding up, sales start to stagnate. I will attribute this to the following 2 reasons:

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

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently in order to a increase 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 within property market as their assets will consistently benefit in the long term and trend of value due to the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest in other types of properties besides the residential segment (such as New Launches & Resales), they furthermore consider buying shophouses which likewise can help generate passive income; and therefore not prone to the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the importance of having ‘holding power’. You shouldn’t be forced to sell your property (and make 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.