Market Insights
Bite-sized Real Estate Insights for You To Keep Up with today’s ever-changing Singapore Property Market.
TOP TEN
Reasons Why You Should Invest in Singapore Properties
Top Ten Reasons Why You Should Invest in Singapore Properties
1. Rapid Economic Growth
2. Refinancing Becomes Cheaper
3. Affordable leverage available to help you boost your return
4. Generate passive rental income
5. Affordable Property tax in Singapore
6. Enjoy a rental yield that is higher than the mortgage interest rate
7. Low mortgage interest rates
8. Protection derived from property rights and laws and regulations
9. Controlled Real Estate Capital Security
10. Proven wealth progression path
Our Investment Strategies
We will carefully tailor strategies that suit your situation and not the other way around.
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Legacy
Planning
Decoupling
Asset
Progression
Portfolio
Optimisation
Matrimonial
Home
Family
Office Set Up
as I explain each reason in detail.
INVESTMENT STRATEGIES
LEGACY PLANNING
(LOCALS/FOREIGNERS)
Legacy planning is a financial strategy that prepares people to bequeath their assets to a loved one or next of kin after death. These affairs are usually planned and organized by a financial advisor.
DECOUPLING
(LOCALS)
Decoupling is the process where one co-owner of a property transfers his or her ownership to the other co-owner of the same property. It is an effective way to save on taxes payable on a second property.
ASSET PROGRESSION PLANNING
Sell One Buy Two refers to the process whereby a couple sell off their HDB and purchase a condo each under their name. It is a popular way to grow one's asset wealth as keeping an HDB long term will cause you to lose on on inflation and capital gain.
PORTFOLIO OPTIMISATION
(LOCALS)
Real estate investments are not a one-time transaction. Instead, it’s a good practice to continually review your asset portfolio, and assess if it’s still optimal for your needs. Get an in-depth evaluation and assessment of your portfolio now!
MATRIMONIAL HOME IN SG
(LOCALS/FOREIGNERS)
Buying your first property is a pretty big deal & can be a daunting one as well. Be in the know and save yourself from the headaches and worries by consulting us for a professional step-by-step guide so you will be more confident to move forward and get your dream home!
FAMILY OFFICE SET UP
(FOREIGNERS)
If you are coming to Singapore and have the intention to set up a small scale office in your residential home, you need to be familiar with the procedure! We are your one-stop solution where we take care of all the necessary work so you can have more time planning for your business!
RISK MANAGEMENT STRATEGIES
1
Set aside contingency fund
With every investment, there is a certain level of risk involved. As such, it is important to set aside a sizeable contingency fund, should any unexpected circumstances arise. Discover how to assess the amount needed for your specific situation.
2
Mortgage
insurance
Another way of managing risk, especially in property, is by purchasing mortgage insurance. Mortgage insurance ensures that your property is insured, should any unforeseen situations occur.
3
Lasting power
of attorney
When it comes to investments, security is everything. A lasting power of attorney will ensure that your assets are protected, should the worst occur. This will allow a trusted individual to act on your behalf, minimizing risks.
HOUSING LOANS
RATES
1. SIBOR
This is a daily reference rate based on the interests at which banks offer to lend unsecured funds to each other in the Singapore wholesale money market.
2. Variable Rate
This rate is pegged to the Bank Internal Board Rate. This means that banks can review the rates as and when they want. This causes uncertainty to what borrower have to pay in the future.
3. Fixed Deposit Rate
4. Fixed
TOTAL DEBT SERVICING
RATIO FOR FOREIGNERS
What is TDSR?
Total Debt Servicing Ratio (TDSR) is a debt servicing measure that bank/ financial institution used to determine i the potential borrower is overly geared with debts.
How to compute TDSR?
Based on the newest measure, TDSR should not be more than 60%
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Monthly Total Debt Obligations
_________________ < 60%
Gross Monthly Income.
What is MSR?
Mortgage Servicing Ratio, or MSR, is a limit imposed by the MAS on how much money you can borrow when you take out a loan to buy HDB property or an EC.
How to compute MSR?
Under the MSR, a maximum of 30% of your gross monthly income can be used to repay your loan.
This rate is normally offered between 1 to 5 years, and the interest rate will usually be higher than the rest. Typically, the longer the fixed period, the higher the interest rate. This is because the bank will have to bear the risk of interest rate going up.
This refers to a Mortgage loan package that is pegged to the Fixed Deposit interest rate. In the event the bank decides to increase the Fixed Deposit rate, your mortgage loan rate increases.
STAMP DUTY & TAXES
Additional Buyer Stamp Duty (ABSD)
Liable buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD). ABSD and BSD are computed on the purchase price as stated in the dutiable document or the market value of the property (whichever is the higher amount).
Seller Stamp Duty (SSD)
SSD is payable on all residential properties and residential lands that are acquired on or after 20 Feb 2010 and disposed of within the holding period.
Property
Tax
Property Tax is a tax on property ownership. It applies whether the property is occupied by the owner (owner-occupied), rented out or left vacant.
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To find out more about different taxes and how to go about in your investment to minimise paying them, do give us a call a drop us a message below.