“It is not when you buy but when you sell that makes principal 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 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 boon by entering the property market and generating second income from rental yields regarding putting their cash secured. Based on the current market, I would advise they keep a lookout for any good investment property where prices have dropped a great deal more 10% rather than putting it in a fixed deposit which pays 0.5% and does not hedge against inflation which currently stands at 5.7%.

In this aspect, my investors and I take any presctiption the same page – we prefer to reap the benefits of the current low rate and put our make the most property assets to generate 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 to an annual passive income as high as $18 000 per annum which easily beats returns from fixed deposits additionally the 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 the actual 2010.

Currently, we can see that although property prices are holding up, sales start to stagnate. I am going to 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 unaltered data 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. Really should not be excessively alarmed by a slowdown in the property market as their assets will consistently benefit in time and increasing amount of value because of 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 clients who would like invest some other types of properties besides the residential segment (such as New Launches & Resales), they might also consider inside shophouses which likewise will help generate passive income; and thus not at the mercy of the recent government cooling measures like the 16% SSD and 40% downpayment required on residential properties.

I cannot help but stress the importance of having ‘holding power’. You must never be expected to sell household (and make 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.