At the end of the day, it is not about purchasing, but about selling that brings a huge difference to a profit. This is why most investors are advised to ensure that they went through financial plans for it is like going to a four-year commitment after a four-year Seller’s Stamp Duty or SSD has been considered. Repaying this is required and it has to happen before the four years.
Once the amount of finances available has been determined, there is already the great advantage of going to the property marketing so that a passive income may be generated. This may be earned through rental yields compared to putting the cash in the bank that does not grow at all.
With the current state of the market in Singapore, it is advisable to check out good investment properties from time to time. There were times when their prices drop to at least 10% as compared to those with a fixed deposit which often pays 0.5%. This unlikely hedge against inflation which now stands for around 5.7%.
Learning more about Investment Plans and Schemes
Here are some of the features of investing a property in Singapore:
- Most of the investors in the country take advantage of the low-interest rate. This is the reason why they normally put out their money to property assets so that they could generate a positive cash flow. This may occur through a rental income. A positive result may be earned from here, most especially from off-set mortgage costs. This would even equate to that of annual passive income which may reach at least $18 annually. This can beat returns which are obtained from fix deposits and outperforms dividend returns which are earned from stocks.
- The prices of private properties still rise until now. Despite the economic uncertainty, the effects of cooling measures are seen now. They have the power to lead slower rise in prices. This has been the case now as compared to how it was in the year 2010. Today, there are reasons seen why there is a sudden hold up in the prices. For instance, sales are now stagnating. There are those who are not willing to sell at lower rises. There are also buyers who are not ready to commit to higher prices. Aside from this, there is also an existing demand for the property which typically exceeds supply because of the owners being hurried to sell. This is when rising occurs.
Most investors should look at Singapore property asset as a long-term investment. They must not be alarmed by the sudden impediment in the property market because they will still benefit from it in the long run. There are reasons why there might an increase in value. These are the following:
- Clean governance in the country
- Scarcity of land
- Inflation which places pressure on most prices
As for any buyer who is willing to invest in other kind of properties aside from the residential segment, shopping houses should begin as early as they can.
