“It is not calling it buy but when you sell that makes the gap to your profit”.
Hence I consistently advise my investors to take care that they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after with the 4-year Seller’s Stamp Duty (SSD) that they will 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 boon by entering the property market and generating passive income from rental yields instead of putting their cash staying with you. Based on the current market, I would advise they will keep a lookout virtually any good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays 0.5% and does not hedge against inflation which currently stands at some.7%.
In this aspect, 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 a whole lot $1500 after off-setting mortgage costs. This equates with regard to an annual passive income as much as $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 despite the economic uncertainty, we can see that the effect of the cooling measures have lead to a slower rise in prices as in order to 2010.
Currently, we observe that although property prices are holding up, sales start to stagnate. I’m going to attribute this to the following 2 reasons:
1) Many owners’ unwillingness to sell at less expensive costs and buyers’ unwillingness to commit into a higher price.
2) Existing demand for properties exceeding supply due to owners finding yourself in no hurry to sell, consequently leading to a improve prices.
I would advise investors to view their Singapore property assets as long-term investments. Really should not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in over time and trend of value as a result of following:
a) Good governance in jade scape singapore
b) Land scarcity in Singapore, and,
c) Inflation which will place and upward pressure on prices
For clients who would like invest consist of types of properties apart from the residential segment (such as New Launches & Resales), they likewise consider throughout shophouses which likewise will help generate passive income; and are not depending upon the recent government cooling measures a lot 16% SSD and 40% downpayment required on residential properties.
I cannot help but stress the value of having ‘holding power’. You should never be forced to sell your stuff (and create a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and you will need to sell only during an uptrend.