Skip to content

Inside Singapore Properties

"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 be certain 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 would 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 great advantage by entering the property market and generating residual income from rental yields compared to putting their cash in the bank. Based on the current market, I would advise these people keep a lookout regarding any good investment property where prices have dropped more than 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 take presctiption the same page - we prefer to reap the benefits the current low price and put our make the most 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 a good annual passive income up to $18 000 per annum which easily beats returns from fixed deposits furthermore outperforms dividend returns from stocks.

Even though prices of private properties have continued to elevate despite the economic uncertainty, we can easily see that the effect of the cooling measures have result in a slower rise in prices as compared to 2010.

Currently, we observe 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 less expensive prices and buyers' unwillingness to commit into a higher charges.

2) Existing demand for properties exceeding supply due to owners being in no hurry to sell, consequently resulting in a increase 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 associated with property market as their assets will consistently benefit in over time 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 in other types of properties aside from the residential segment (such as New Launches & Resales), they might also consider purchasing shophouses which likewise assist generate passive income; are usually not subject to the recent government cooling measures such as the 16% SSD and jade scape 40% downpayment required on residential properties.

I cannot help but stress the need for having 'holding power'. You should never be instructed 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.