“It is not calling it buy but when you sell that makes the gap 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 taking into consideration the 4-year Seller’s Stamp Duty (SSD) that they will want 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 gift 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 will keep a lookout regarding 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 suggestions.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to reap the benefits the current low interest rate 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 a good annual passive income of up to $18 000 per annum which easily beats returns from fixed deposits and also outperforms dividend returns from stocks.

Even though prices of private properties have continued to elevate despite the economic uncertainty, we are able to access that the effect of the cooling measures have caused a slower rise in prices as in comparison to 2010.

Currently, we are able to access that although property prices are holding up, sales are beginning to stagnate. Let me attribute this on the following 2 reasons:

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

2) Existing demand for properties exceeding supply due to owners finding yourself in no hurry to sell, consequently resulting in a embrace prices.

I would advise investors to view their Singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown each morning 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 jade scape singapore, and,

c) Inflation which will place and upward pressure on prices

For clients who would like invest in other types of properties aside from the residential segment (such as New Launches & Resales), they furthermore consider purchasing shophouses which likewise assist generate passive income; are usually not controlled by the recent government cooling measures such as the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the value of having ‘holding power’. You shouldn’t be made to sell household (and develop a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and require to sell only during an uptrend.

Committing to Singapore Properties

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