“It is not when you buy but when you sell that makes learn to your profit”.

Hence I consistently advise my investors to be certain 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 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 gift by entering the property market and generating a second income from rental yields regarding putting their cash on your bottom line. Based on the current market, I would advise that they keep a lookout any kind of good investment property where prices have dropped more than 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 take prescription the same page – we prefer to reap the benefits the current low pace and put our profit in 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 with regard to an annual passive income as high 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, jade scape we can see that the effect of the cooling measures have result in a slower rise in prices as in order to 2010.

Currently, we cane easily see that although property prices are holding up, sales are starting to stagnate. I will attribute this for the following 2 reasons:

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit together with higher promoting.

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

I would advise investors to view their Singapore property assets as long-term investments. Will need to not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in over time and boost in 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 some other types of properties apart from the residential segment (such as New Launches & Resales), they could also consider purchasing shophouses which likewise might help generate passive income; and thus 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 should never be made to sell your property (and make a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and it’s sell only during an uptrend.

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