5 Key considerations for investing in UK

Editorial Team
Editorial Team

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Why would a Singaporean invest in UK? Here are 5 top reasons!

1. Legal System

Singapore’s history with UK means that much of Singapore’s laws are based on the old UK laws. Although Singapore has gained independence for over 55 years and both countries’ laws have advanced, the commonalities are still there.

This allows us to have more confidence and familiarity with the laws.

2. Friendliness to Foreign Investors

Although UK is set to have foreigner’s stamp duty charges from 31 Mar 2020, the charges are 2% which is still palatable. Compare this with one of Singaporean’s top favourite country – Australia. In Australia, the foreigner’s stamp duty charges are at 8%. This makes the total amount of stamp duty fees payable as a foreigner a whopping 16% (and climbing!).

3. Local Loans

With a variety of banks and financiers in UK, Singaporeans are able to take local loans in UK. Some of the common banks we use are Gatehouse and Skipton. Compare this with Australia, where it is illegal for banks to loan to foreigners. This essential means that only private loans are available at extremely high interest rates of more than 5%!

4. Ease of Rental

In certain cities of UK, the vacancy rates are as low as 2%! There’s a housing crisis in UK and a desperate need of housing. Compare this to Singapore where we have a 5-6% vacancy rate. It is really easy to rent out your house in UK.

5. Growth of Property

The average non-landed private property price growth in UK is at 4.5% (based on PPI). In Singapore, the non-landed private property price growth is at 2.4%. UK properties are growing at 2x the speed of Singapore!

When investing in properties, we need to understand both macro and micro perspective as well as data and analysis to make informed decisions on where and what to invest in. If you’re keen to know more about how UK Properties can help to improve your portfolio, let us know and our team will be able to reach out to you to share more.

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