“It is not calling it buy but when you sell that makes learn to your profit”.
Hence I consistently advise my investors to ensure 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 will want 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 gift by entering the property market and generating a second income from rental yields associated with putting their cash on your bottom line. Based on the current market, I would advise they will keep a lookout virtually any good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays .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 interest rate and put our make the most 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 to an annual passive income all the way to $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 rise despite the economic uncertainty, we notice that the effect of the cooling measures have cause a slower rise in prices as in order to 2010.
Currently, we observe that although property prices are holding up, sales are beginning to stagnate. Let me attribute this towards following 2 reasons:
1) Many owners’ unwillingness to sell at lower prices and buyers’ unwillingness to commit with a higher promoting.
2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently resulting in a enhance 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 over time and boost in 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 clients who would like invest some other types of properties apart from the residential segment (such as New Launches & Resales), they could also consider purchasing shophouses which likewise can help generate passive income; and therefore not controlled by the recent government cooling measures such as the 16% SSD and 40% downpayment required on homes.
I cannot help but stress the importance of having ‘holding power’. You must never be forced to sell your house (and make a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and jade scape require to sell only during an uptrend.