200 Sinkies Cheated In Get-Rich-Quick Property Scam! Thank PAP For CPF!

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An honorable member of the Coffee Shop Has Just Posted the Following:

About 200 Singaporeans could lose up to $20m after UK developer Key Homes became insolvent and was put into adminstration.

Most of the investors are aged above 40, and a number of them are using their savings from the Central Provident Fund to buy these housing projects.

About 70 of them are hiring British lawyer Clive Wiggins from Jeromes Solicitors to explore legal options to recover their investments. Mr Wiggins is in the process of completing fact-finding for the case and will be advising his clients soon on what form of recourse they could take.

Key Homes had initially aimed to build nine student hostels and hotels, which attempts to give investors a steady stream of rental income. These projects are in various cities, including London, Leicester, Hull and Birmingham.

The developer had only completed just two developments out of the nine projects: a student hostel in Hull and a hotel in Leeds. They were refurbished from existing old hotel buildings.

However, Singapore investors had disagreements over the service fees levied by the management firms which were in charge of maintaining and finding tenants for the buildings. Thus they have not received rent from the two completed projects for the past four months.

Singaporeans have been buying Key Homes projects as early as 2011. In total, they bought more than 300 units costing around £39,500 to £60,000 each (S$89,000 to S$122,000). They were guaranteed of an annual rent of about 5 to 8 percent of the property’s cost.

However, some are not optimistic of getting their money back, as Key Homes’ insurer, Northern & Western Insurance, was placed into liquidation in January.

Some investors have complained about the real estate agency here which had marketed the project. The Council for Real Estate Agencies, which regulates real estate agents, is looking into the complaint.

The Singapore buyers are also in contact with about 80 affected investors from Hong Kong.

The Hong Kong group has hired a British lawyer to sue Key Homes, and organised a press conference last month, which was fronted by Hong Kong Legislative Council member James To.

Said a 55-year-old housewife who paid £79,000 for two units in a student hostel in Hull: “I did not do enough research and now I am paying the price.”


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