"It is not when you buy but when you sell that makes the gap 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 jade scape the 4-year Seller's Stamp Duty (SSD) that they will want 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 compared to putting their cash secured. Based on the current market, I would advise may keep a lookout for any good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays three.5% and does not hedge against inflation which currently stands at simple.7%.
In this aspect, my investors and I take presctiption the same page - we prefer to take advantage of the current low fee 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 for annual passive income as much as $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 rise despite the economic uncertainty, we can easily see that the effect of the cooling measures have result in a slower rise in prices as in comparison to 2010.
Currently, we can see that although property prices are holding up, sales are beginning to stagnate. I am going to attribute this on the following 2 reasons:
1) Many owners' unwillingness to sell at affordable prices and buyers' unwillingness to commit to some higher price.
2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently resulting in a enhance prices.
I would advise investors to view their Singapore property assets as long-term investments. Dealerships will have not be excessively alarmed by a slowdown within 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 in addition to the residential segment (such as New Launches & Resales), they likewise consider investing in shophouses which likewise might help generate passive income; are usually not controlled by the recent government cooling measures a lot 16% SSD and 40% downpayment required on homes.
I cannot help but stress the importance of having 'holding power'. You shouldn't ever be made to sell your house (and create a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and it's sell only during an uptrend.