Once they have determined the amount of financing they are willing to Outlay, they will set themselves in a wonderful advantage by going into the property market and generating passive income from rental yields as opposed to putting their money in the bank. Depending on the current market, advise that they keep a watch for any fantastic investment property where costs have dropped more than 10 percent as opposed to placing it at a fixed deposit that pays 0.5percent and does not hedge against inflation which now stands at 5.7%.
In this aspect, my investors and on the same page – we like to make the most of the current low rate of interest and put our money in property assets to create a positive cash flow through rental income. Everyone has seen some properties generating positive monthly cash flow of around 1500 after off-setting mortgage expenses. This equates to an annual passive income of around 18 000 per annum which easily beats returns from fixed deposits and also outperforms dividend returns from stocks.
Though prices of personal properties have continued to rise despite the financial uncertainty, we can observe that the impact of the cooling measures have lead to a slower rise in costs compared to 2010. Currently, we can see that although property prices are holding up, Sales are starting to stagnate.
- Many owners’ unwillingness to sell at reduced prices and buyers’ Unwillingness to commit to a higher cost.
- Present demands for properties surpassing supply because of owners being in no rush to sell, consequently resulting in a rise in costs.
- Good governance in Singapore
- Land scarcity in Singapore, also,
- Inflation that will put and upward pressure on costs
For buyers who would prefer invest in other types of properties apart from the residential segment for example, Pasir Ris 8 Condo New Launches and Resale’s, they might also think about investing in shop houses which similarly can help create passive income; and are not subject to the current government cooling measures such as the 16 percent SSD and 40 percent down payment required on residential properties. You should never be forced to sell your property and make a loss even during a downturn. Always bear in mind that the property market moves in a cyclical pattern and you need to sell just during an uptrend.
Very few of those protected areas exist in Singapore today. Just about 39 designated regions for Great Class Bungalows or GCBs are designated by the government as protected areas for these kinds of housing developments. These Regions are Nazism Road, Belmont Park, Cluny Hill and Raffles Park. There are approximately 2,500 GCBs around the Singapore and of the countless Singaporeans just about 1,000 taxpayers own bungalows in those designated areas.