“It is not calling it buy but when you sell that makes distinction is the successful 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 need to pay if they sell their property before 4 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 a second income from rental yields compared to putting their cash in the bank. Based on the current market, I would advise they keep a lookout for good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays .5% and does not hedge against inflation which currently stands at some.7%.

In this aspect, my investors and I take prescription the same page – we prefer to reap the benefits of the current low fee and put our profit 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 for 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 rise despite the economic uncertainty, we could see that the effect of the cooling measures have caused a slower rise in prices as compared to 2010.

Currently, we can see that although property prices are holding up, sales start to stagnate. I will attribute this on the following 2 reasons:

1) Many owners’ unwillingness to sell at less expensive costs and jade scape buyers’ unwillingness to commit into a higher promoting.

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently leading to a enhance 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 in the property market as their assets will consistently benefit in time and increased value due to the following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For clients who would like invest consist of types of properties apart from the residential segment (such as New Launches & Resales), they likewise consider throughout shophouses which likewise assist generate passive income; and are not prone to the recent government cooling measures prefer the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the significance of having ‘holding power’. You must never be made to sell your house (and create a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and you will need to sell only during an uptrend.