“It is not calling it buy but when you sell that makes principal 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 for the 4-year Seller’s Stamp Duty (SSD) that they will have 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 boon by entering the property market and generating second income from rental yields rather than putting their cash in the bank. Based on the current market, I would advise they will keep a lookout regarding any good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays three.5% and does not hedge against inflation which currently stands at ideas.7%.

In this aspect, my investors and I are on the same page – we prefer to reap the benefits the current low fee and put our make the most property assets to generate a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of of up to $1500 after off-setting mortgage costs. This equates to an 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 despite the economic uncertainty, we are able to access that the effect of the cooling measures have cause a slower rise in prices as the actual 2010.

Currently, jade scape we observe that although property prices are holding up, sales start to stagnate. I’m going to attribute this towards following 2 reasons:

1) Many owners’ unwillingness to sell at more 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 in order to a rise in 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 each morning property market as their assets will consistently benefit in over time and trend of value as a result of 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 consist of types of properties aside from the residential segment (such as New Launches & Resales), they may also consider throughout shophouses which likewise might help generate passive income; are usually not subject to the recent government cooling measures like the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the significance of having ‘holding power’. You shouldn’t be expected to sell your stuff (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.

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