"It is not in case you buy but when you sell that makes distinction is the successful 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 with the 4-year Seller's Stamp Duty (SSD) that they will need 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 advantage by entering the property market and generating a second income from rental yields regarding putting their cash staying with you. Based on the current market, I would advise these people keep a lookout any kind of good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays 0.5% and does not hedge against inflation which currently stands at 5.7%.
In this aspect, my investors and I take prescription the same page - we prefer to reap the benefits of the current low price and put our take advantage 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 to an annual passive income up to $18 000 per annum which easily beats returns from fixed deposits as well outperforms dividend returns from stocks.
Even though prices of private properties have continued to go up 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 in order to 2010.
Currently, we cane easily see that although property prices are holding up, sales are beginning to stagnate. Let me attribute this for the following 2 reasons:
1) Many owners' unwillingness to sell at less expensive prices and buyers' unwillingness to commit into a higher promoting.
2) Existing demand for properties exceeding supply due to owners finding yourself in no hurry to sell, consequently leading to a embrace 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 time and increased value due to 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 various other types of properties apart from the residential segment (such as New Launches & Resales), they might also consider buying shophouses which likewise can help generate passive income; and jade scape therefore not depending upon the recent government cooling measures similar to the 16% SSD and 40% downpayment required on residential properties.
I cannot help but stress the significance of having 'holding power'. You shouldn't be instructed to sell your stuff (and create a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and you should sell only during an uptrend.