“It is not when you buy but when you sell that makes the difference to your profit”.

Hence I consistently advise my investors to take care that they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after taking into consideration the 4-year Seller’s Stamp Duty (SSD) that they will have 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 great advantage by entering the property market and generating passive income from rental yields compared to putting their cash secured. Based on the current market, I would advise these people keep a lookout any kind of 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 some.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 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 for annual passive income all the way to $18 000 per annum which easily beats returns from fixed deposits plus outperforms dividend returns from stocks.

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

Currently, we cane easily see that although property prices are holding up, sales are starting to stagnate. I’m going to attribute this to the following 2 reasons:

1) Many owners’ unwillingness to sell at affordable prices and buyers’ unwillingness to commit to a higher charges.

2) Existing demand unaltered data exceeding supply due to owners finding yourself in no hurry to sell, consequently resulting in a increase 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 each morning property market as their assets will consistently benefit in over time and boost in value as a result of 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 some other types of properties aside from the residential segment (such as New Launches & Resales), they furthermore consider inside shophouses which likewise support generate passive income; and are 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’. You must never be required to sell house (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.