"It is not an individual have buy but when you sell that makes the difference 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 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 second income from rental yields rather than putting their cash secured. Based on the current market, I would advise that they 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 .5% and does not hedge against inflation which currently stands at simple.7%.
In this aspect, my investors and I take presctiption the same page - we prefer to probably the current low price 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 of up to $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 plus outperforms dividend returns from stocks.
Even though prices of private properties have continued to rise despite the economic uncertainty, we are able to access that the effect of the cooling measures have result in a slower rise in prices as when compared with 2010.
Currently, we cane easily see that although property prices are holding up, sales are starting to stagnate. Let me attribute this for the following 2 reasons:
1) Many owners' unwillingness to sell at affordable prices and buyers' unwillingness to commit to some higher charges.
2) Existing demand for properties exceeding supply due to owners finding yourself in no hurry to sell, consequently resulting in a rise in prices.
I would advise investors to view their Singapore property assets as long-term investments. They should not be excessively alarmed by a slowdown within property market as their assets will consistently benefit in the long run and boost in value due to the following:
a) Good governance in Singapore
b) Land scarcity in jade scape singapore, and,
c) Inflation which will set 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 may also consider buying shophouses which likewise can help generate passive income; and are not controlled by the recent government cooling measures prefer the 16% SSD and 40% downpayment required on residential properties.
I cannot help but stress the value of having 'holding power'. You shouldn't be expected to sell 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.