This year, the Singapore government has announced several changes to the national budget. Here is the low-down of what’s going to happen to Singaporeans:

1. An increase in stamp duty for property owners
2. An increase in GST (Goods and Services Tax)
3. A one-time bonus of $100 – $300 will be issued to your pocket


Look for Undervalued Property Deals, but Consider Other Asset Classes

With an increase in stamp duty from 3% to 4%, this can only mean that the (already absurdly expensive) houses in Singapore are going to be more expensive! Property investors might need to think twice before investing their money, as they will have to ensure that the property yields or appreciation will be able to make up for this additional stamp duty.

 

national budget changes in singaporeAlthough in the long run, this 1% increase may not sound substantial, we must not forget the the property game is often leveraged, with investors opting for borrowed money to get into the game. Even 1% is a substantial amount for those operating on small capital. Make sure you get only the best property deals that are substantially undervalued!

Instead of fretting over this increase, you can also turn to other asset classes. Perhaps the stock market would be a better choice as recently there was a correction in the market, which could be a potential opportunity for some great businesses! As Value Investors, we hunt for great bargains on the stock market, going in when the world is exiting, thus we see such corrections as potential opportunities.

Using this age-old proven approach, our community members from Value Investing College have been generating up to 20% annual returns a year.


Plan Ahead for Big Ticket Items

The GST is also expected to increase from 7% to 9% over the next few years, this means that the cost of living will be increasing. While we can’t avoid the problem of the GST hike, we can plan in advance for the big ticket items that we are planning to purchase and make plans to buy it before the hike. Although 2% of savings might not seem much, for big ticket items, it is savings translated from hundreds to thousands of dollars.


Set Aside Cash for Stocks!

While some Singaporeans might rejoice over their $100-$300 bonus (we’re not complaining!), we think the best way is to set aside a sum of money to save or invest, instead of spending it all. For example, if I received $300 and decided to invest it all, at an annual compounded basis of 20% returns per year, at the end of 10 years, I would have had $1,857.52. Every dollar spent is an opportunity to make so much more!

With the stock markets at an all time high, it is long overdue for a crash. Although we cannot predict exactly when it is going to happen, we can be prepared by setting cash aside.

If you’re looking for another alternative, most millionaires and billionaires give this advice: Invest in yourself. Attend courses or learn new skills. That’s the best kind of investment that you can ever make. You will be surprised at the returns you can make for yourself 😉

So learn how to take advantage of this national budget changes by learning how to invest in Singapore now!  Register for our free investing workshop below:

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This article was written by Aaron Tan

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