"It is not an individual have buy but when you sell that makes principal to your profit".
Hence I consistently advise my investors to guantee 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 want 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 residual income from rental yields compared to putting their cash secured. Based on the current market, I would advise may keep a lookout virtually any good investment property where prices have dropped very 10% rather than putting it in a fixed deposit which pays 0.5% and does not hedge against inflation which currently stands at simple.7%.
In this aspect, my investors and I are on the same page - we prefer to make the most of the current low price and put our take advantage property assets to generate a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of as high as $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 additionally the outperforms dividend returns from stocks.
Even though prices of private properties have continued to increase despite the economic uncertainty, we are able to access that the effect of the cooling measures have cause a slower rise in prices as in comparison to 2010.
Currently, we cane easily see that although property prices are holding up, sales start to stagnate. I will attribute this for the following 2 reasons:
1) Many owners' unwillingness to sell at lower prices and buyers' unwillingness to commit into a higher charges.
2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently resulting in a embrace prices.
I would advise investors to view their Singapore property assets as long-term investments. Really should not be excessively alarmed by a slowdown within property market as their assets will consistently benefit in the longer term and trend of value due to the following:
a) Good governance in Singapore
b) Land scarcity in Singapore, and,
c) Inflation which will set and jade scape upward pressure on prices
For buyers who would like invest in other types of properties besides the residential segment (such as New Launches & Resales), they may also consider purchasing shophouses which likewise might help generate passive income; and thus not prone to the recent government cooling measures a lot 16% SSD and 40% downpayment required on homes.
I cannot help but stress the need for having 'holding power'. Never be forced to sell your stuff (and develop a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and really sell only during an uptrend.