"It is not calling it buy but when you sell that makes learn to your profit".
Hence I consistently advise my investors to be sure 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 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 advantage by entering the property market and generating passive 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 any kind of good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays .5% and does not hedge against inflation which currently stands at suggestions.7%.
In this aspect, my investors and I are on the same page - we prefer to reap the benefits of the current low interest rate 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 of up to $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 as well outperforms dividend returns from stocks.
Even though prices of private properties have continued to go up despite the economic uncertainty, we could see that the effect of the cooling measures have cause a slower rise in prices as in comparison to 2010.
Currently, we look at that although property prices are holding up, sales are beginning to stagnate. I will attribute this towards following 2 reasons:
1) Many owners' unwillingness to sell at more affordable prices and jade scape 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 leading to a increase prices.
I would advise investors to view their Singapore property assets as long-term investments. They ought to 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 buyers who would like invest some other types of properties apart from the residential segment (such as New Launches & Resales), they might also consider investing in shophouses which likewise can help generate passive income; that 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 shouldn't be made to sell your house (and create a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and you should sell only during an uptrend.