Hi ,

Here's Invest With Pete market update for Jul 06, 2022...

As the market is rolling over with the expectation of a recession and higher inflation, I have been cracking my head over what are the investment opportunities out there.

While I am very positive about the Singapore property market, the Additional Buyer Stamp Duty (ABSD) makes it unprofitable to purchase a second property as investment. So I decided to look abroad and I discovered some great opportunities in the UK.

Below are some of the reasons why I am positive about UK properties too.

• Cheap Valuation - While the global property prices have been increasing sharply. UK has remained relatively affordable. When we compared the home prices to income ratio. UK has an average of 6-7x while Singapore is 17x while US and Australia is more than 22x.

• Young Demographics - Unlike most developed nations, UK actually has a much younger population. Looking below, you can see that they have a much higher population below age 35. And these people will come to age and need to purchase or rent a home in a few years time. Music to my ears.
• 

• Low Housing Supply - UK is currently facing a housing crunch. The demand for new homes is 5:1. And that has put upward pressure on the rental market too. Overall, my two properties are able to fetch 6-7% gross rental yield, which is way higher than Singapore's 2-3% gross rental yield.

• Extremely Low Rental Vacancy - As investors, we will be renting out our properties so it is important to know if the rental demand is high in UK. Overall, the rental vacancy is less than 3% in UK, comparing to Singapore's vacancy of 6-7%. In fact, my management agent is telling me that there is already a waitlist of tenants who want to rent my property. And my property is not even fully built yet.

• Tax Friendly - Before the email gets too long, the last point is the UK tax system which is very friendly towards investors. Instead of the ABSD of 17-25% in Singapore, I am only paying about 7% (only 2% more than the locals). This allows me to build a portfolio of UK properties without paying exorbitant taxes. While there are capital gains tax in the UK, you can actually off set the expenses, and potentially avoid it totally.

There are just too much to share in a single email.

So I will be holding a LIVE zoom to share the exact properties that I invested in and the detailed numbers.

Also I will be bringing on a special guest to share with you the details of a UK property deal that you can invest in right now! (It is so good, I bought it myself)

The great news is that there are still good units left so if you are keen to find out more about UK properties or want to know more about the deal, join us on zoom this Friday!

Register here

Oh! keep your Saturday free too! After the zoom, we will be having an in-person UK 🇬🇧 property live event on Saturday! Where you can meet and ask the developer questions about the property deal.

Enjoy, Pete Tan