Singaporeans have long been significant investors in property around the world, many people have described their cash-rich investors and funds going on a global shopping spree for the property of all shapes and sizes. And UK property has played a big part in it, both commercial and residential. Even Student Accommodation Investments, which was previously quiet niche has taken the whole of Asia and the Middle East by storm, has seen strong investment from Singapore. One of the large real estate investment trusts in Singapore has taken over 5000 units of purpose built student accommodation.
But with the uncertainty of Brexit mixed with what many describe as the Singaporeans’ conservative attitude towards investing, Life Tenancy Investments are becoming ever more appealing. This unique strategy involves buying a property that comes with a Life Tenant; a single or married elderly couple usually between 60-80 years old. The Life Tenant pays a proportion of the property price in exchange for a lifetime lease. The proportions that Investors give in comparison to the life tenant pay all depends on the age of those tenants and the current mortality rates given by the office of national statistics.
Investors may not know the exact term of the investment as it is based on an actuarial model, but they do know that it would require years of house deflation before the money could be lost thus suiting conservative investors’ needs. If you want to read more about getting your own Life Tenancy Investment, MacBeale’s website has all the information and explanations.
Most people would believe that Brexit could cause Singaporean attitudes to go one of two ways with regards to investing in the UK property market. Some consider that the turbulent times the UK is experiencing will scare off investors as it may seem too risky, whilst others think that due to the dramatic decrease to the value of the Pound [sterling] that investors (particularly institutional investors) holding large amounts of Singaporean dollars will be more inclined to invest based on the huge savings to be had from the struggling currency.
There has been further good news for the real estate investment trusts in Singapore with changes to the amount of debt allowed on deposited assets reducing from 50% to 45%. This comes after the Monetary Authority of Singapore’s one month long consultation. This is good news for brokers who are selling UK property as it seems Singapore is not slowing down when it comes to property investment.
Overall it seems Singaporean Investors are not slowing down on their property shopping spree at all.