“It is not in case you buy but when you sell that makes learn 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 taking into consideration 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 second income from rental yields instead of putting their cash secured. Based on the current market, I would advise that they keep a lookout virtually any good investment property where prices have dropped an estimated 10% rather than putting it in a fixed deposit which pays two.5% and does not hedge against inflation which currently stands at 5.7%.
In this aspect, my investors and I take presctiption 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 as many as $1500 after off-setting mortgage costs. This equates with regard to an annual passive income of up to $18 000 per annum which easily beats returns from fixed deposits additionally the outperforms dividend returns from stocks.
Even though prices of private properties have continued to rise despite the economic uncertainty, we are able to access that the effect of the cooling measures have can lead to a slower rise in prices as compared to 2010.
Currently, we can see that although property prices are holding up, sales start 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 into a higher promoting.
2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently in order to a rise in prices.
I would advise investors to view their jade scape singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown associated with property market as their assets will consistently benefit in the longer term and increasing amount 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 consist of types of properties besides the residential segment (such as New Launches & Resales), they furthermore consider purchasing shophouses which likewise will help generate passive income; and therefore not at the mercy of the recent government cooling measures prefer the 16% SSD and 40% downpayment required on residential properties.
I cannot help but stress the value of having ‘holding power’. Never be required to sell your stuff (and develop 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.