“It is not when 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 for 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 boon by entering the property market and generating passive income from rental yields associated with putting their cash in the bank. Based on the current market, I would advise these people keep a lookout for good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays two.5% and does not hedge against inflation which currently stands at 5.7%.

In this aspect, my investors and I use the same page – we prefer to reap the benefits 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 up to $1500 after off-setting mortgage costs. This equates to an annual passive income all the way 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 despite the economic uncertainty, we can easily see that the effect of the cooling measures have caused a slower rise in prices as compared to 2010.

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

1) Many owners’ unwillingness to sell at more affordable prices 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 resulting in 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 in the property market as their assets will consistently benefit in time and increase in value because of the following:

a) Good governance in Singapore

b) Land scarcity in jade scape singapore, and,

c) Inflation which will place and upward pressure on prices

For buyers who would like invest consist of types of properties apart from the residential segment (such as New Launches & Resales), they may also consider investing in shophouses which likewise will help generate passive income; and therefore not at the mercy of the recent government cooling measures a lot 16% SSD and 40% downpayment required on homes.

I cannot help but stress the value of having ‘holding power’. You should never be required to sell household (and create a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and require to sell only during an uptrend.