"It is not when you buy but when you sell that makes learn 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 must 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 gift by entering the property market and generating second income from rental yields instead of putting their cash in the bank. Based on the current market, I would advise may keep a lookout for 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 ideas.7%.
In this aspect, my investors and I use the same page - we prefer to make the most of the current low fee and put our money in 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 many as $1500 after off-setting mortgage costs. This equates a good annual passive income as high as $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 increase despite the economic uncertainty, we are able to access that the effect of the cooling measures have caused a slower rise in prices as when compared with 2010.
Currently, we cane easily see that although property prices are holding up, sales are beginning to stagnate. I will attribute this into the following 2 reasons:
1) Many owners' unwillingness to sell at lower prices and buyers' unwillingness to commit to a higher the price tag.
2) Existing demand unaltered data exceeding supply due to owners being in no hurry to sell, consequently in order to a enhance prices.
I would advise investors to view their jade scape singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown your market property market as their assets will consistently benefit in the long run and trend of value because of the following:
a) Good governance in Singapore
b) Land scarcity in Singapore, and,
c) Inflation which will place and upward pressure on prices
For buyers who would like invest some other types of properties apart from the residential segment (such as New Launches & Resales), they likewise consider purchasing shophouses which likewise assist generate passive income; are usually not prone to the recent government cooling measures similar to the 16% SSD and 40% downpayment required on homes.
I cannot help but stress the significance of having 'holding power'. You shouldn't be forced to sell your house (and make a loss) even during a downturn. Remember that the property market moves in a cyclical pattern and really sell only during an uptrend.