“It is not when you buy but when you sell that makes principal 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 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 advantage by entering the property market and generating second income from rental yields regarding putting their cash on your bottom line. Based on the current market, I would advise these people keep a lookout virtually any good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays 4.5% and does not hedge against inflation which currently stands at ideas.7%.
In this aspect, my investors and I are on the same page – we prefer to probably the current low price 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 as much as $18 000 per annum which easily beats returns from fixed deposits furthermore outperforms dividend returns from stocks.
Even though prices of private properties have continued to increase despite the economic uncertainty, we are able to access that the effect of the cooling measures have result in a slower rise in prices as compared to 2010.
Currently, we observe that although property prices are holding up, sales are beginning 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 to a higher charges.
2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently in order to a rise in 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 your market property market as their assets will consistently benefit in the longer term and trend of value because of the following:
a) Good governance in Singapore
b) Land scarcity in Singapore, jade scape and,
c) Inflation which will place and upward pressure on prices
For buyers who would like invest some other types of properties apart from the residential segment (such as New Launches & Resales), they may also consider inside shophouses which likewise support generate passive income; and thus not subject to the recent government cooling measures such as the 16% SSD and 40% downpayment required on residential properties.
I cannot help but stress the significance of having ‘holding power’. You should never be forced to sell your property (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.