"It is not calling it buy but when you sell that makes the gap 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 taking into consideration the 4-year Seller's Stamp Duty (SSD) that they will 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 gift by entering the property market and generating residual income from rental yields rather than putting their cash staying with you. Based on the current market, I would advise that they keep a lookout virtually any good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays two.5% and does not hedge against inflation which currently stands at some.7%.
In this aspect, my investors and I use the same page - we prefer to reap the benefits the current low rate and put our benefit property assets to generate a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of a whole lot $1500 after off-setting mortgage costs. This equates for annual passive income of up to $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 despite the economic uncertainty, we can easily see that the effect of the cooling measures have can lead to a slower rise in prices as in comparison to 2010.
Currently, we cane easily see that although property prices are holding up, sales start to stagnate. I will attribute this into the following 2 reasons:
1) Many owners' unwillingness to sell at lower prices and buyers' unwillingness to commit to a higher charges.
2) Existing demand for properties exceeding supply due to owners being in no hurry to sell, consequently resulting in a embrace prices.
I would advise investors to view their Singapore property assets as long-term investments. Will need to not be excessively alarmed by a slowdown associated with property market as their assets will consistently benefit in the longer term and trend of value because of the following:
a) Good governance in Singapore
b) Land scarcity in Singapore, jade scape and,
c) Inflation which will place and upward pressure on prices
For clients who would like invest in other types of properties apart from the residential segment (such as New Launches & Resales), they could also consider purchasing shophouses which likewise support generate passive income; and therefore 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 should never be made to sell your property (and make a loss) even during a downturn. Always remember that the property market moves in a cyclical pattern and require to sell only during an uptrend.