Investing in overseas properties, Cai Jun has tips

The tide of immigration of Hong Kong people has not yet fully erupted, but the boom in investment in overseas properties has first appeared

In recent years, many overseas real estate agents have taken the opportunity to open lectures to promote foreign bamboo shoots. However, any investment must assess the risk, the sheep’s psychology to pursue, at any time not worth the candle. The following three people who have come to the forefront of the financial industry to share their personal experience in investing in overseas properties, and plain out the major considerations, the prospective buyers do not miss it!

rent is enough for the supply

Mr. Yan Changnian, Chief Executive Officer of Chilean Oriental Securities, who owns Canadian citizenship, purchased more than 900 square meters of apartments in Yonge Street, Toronto, Canada, for nearly $1 million (approximately HK$5.92 million) two years ago. He said, “Canada does not have Hong Kong’s hot weather, large space and environmental ambiguity, but it is boring in local life. The main reason for buying Canadian buildings is to buy them first because of the generosity of relatives.” He reminded that investing in overseas properties must not be expected to develop. .

High management fees, numerous taxes

He said that the rental return of his property was over 4%, but was halved after tax deduction. He sighed that the interest charged by HSBC Holdings (00005) was less, and the annual rent increase was limited to 1.8%. Instead of Canadian citizenship or permanent residents, buying property in individual areas requires an additional 15% of the property valuation to be paid as an overseas buyer’s tax. Other taxes include residential property tax, land tax and brokerage commission. He said that investors in Canada must be psychologically prepared and the rental income could not offset the mortgage expenses.

He asserted: “Before you go to the day to buy, the management of the monks is very expensive.” So, looking for tenants and managing the property, he does everything personally. Fortunately, hundreds of thousands of new immigrants are collected each year, and the demand for rigidity is large, and his property is also rented out. The tenant was moved to the immigrants. He had been worried about being a troubled person, but the tenant was willing to pay a one-year rent at a time, which immediately relieved him.

Medical level is not as good as Hong Kong

His purchase of the property is purely an investment, and he has no intention of immigrating to Canada. He said, “I have not retired. If I live in my home, I will have no income.” In recent months, the social unrest in Hong Kong has made more Hong Kong people consider immigration. Remind that if you want to buy a home based on immigration, you must carefully consider the necessity of immigration. First, whether you can find a job that suits you. If you are a fund manager in Hong Kong, you can earn an annual salary of nearly 10 million yuan. However, after immigration, it may be difficult to find a position with the same salary. However, if you are engaged in industries such as hydropower and mechanics, you are very popular.

Second, do you have enough savings, because you have not lived in Canada for ten years and you are not entitled to social welfare. He calculated that the monthly living expenses of the two families should be at least $3,000 (about HK$17,700), including $2,000 in rental expenses. It is roughly estimated that a total of 400,000 Canadian dollars (about 2.37 million Hong Kong dollars) will be required for ten years. He added that the local transportation fee is not cheap, and the journey is over HK$20, but the price is reasonable. However, he heard that the local medical service level was not as good as that of Hong Kong. After a friend moved to the local area, he still made a special trip back to Hong Kong for medical treatment.

Malaysia Lian Jinghan: Yiwang District

Lian Jinghan, managing director of Qinfeng Securities Asset Management Department, bought a residential building in the center of Kuala Lumpur, near the Twin Towers, in the capital of Kuala Lumpur for nearly HK$3 million in 17 years. The unit has a usable area of ​​more than 500 square meters and the price is nearly 2,500 horses (about 4,700 Hong Kong dollars). He pointed out that the fine units in the lot are easy to rent.

Buying pre-paid payment

Originally bought Malaysian residential buildings, can be divided into longer-term payments. He said that general residential properties range from three to five years from the start of the building to completion. I remember that he only had to pay the first installment in the first place, and he would pay an extra 10% when he started the foundation. The remaining 80% of the building price will only be paid when you purchase the unit floor to be constructed. If you live at a higher level, you will have more time to prepare the funds. This payment method guarantees the buyer to avoid the risk of clearing the bag once it is bought. In addition, the purchase of flats should strive for the first batch of picking, the head of the soup, let you buy a flatter, landscape, location and better sitting units.

The convenience of immigration can be enjoyed by purchasing a local building. Malaysia has the Malaysia My Second Home Program, which allows citizens to apply for citizenship and reside in Malaysia with a 10-year residence visa without giving up their nationality.

Non-locals can do 70% mortgage

He mentioned that if you successfully apply for MM2H, property buyers can make up to 70% of building mortgages to local banks. Compared with non-residents, they can only make more than 50% of mortgages. The former is more numerous.

In addition, MM2H applicants can bring their spouse, unmarried children under the age of 21 and parents over the age of 60 to live in Malaysia. The applicant’s children can enjoy local education, and adults can enjoy tax benefits when investing, buying and doing business, and visas can be renewed indefinitely.

He regrets that he did not apply for the MM2H by the developer when he bought the building. If he applied now, he would have to deal with it himself and charge him. However, he reminded that MM2H is not naturalized, so there is no political power.

United Kingdom Lin Haowen: Long-term property prices can be fried

Lin Haowen, executive director and valuation and consulting director of Knight Frank, bought a residential building in the core Zone 2 area of ​​London last year. According to data from Knight Frank, the property price in London is the highest in the country, with an average price of £1,200 (approximately HK$11,500). If the unit area is 500 square feet, the property price is nearly HK$6 million. He said that in the face of Brexit, the residential units in the Zone 2 Minsheng District are easier to rent.

Pound retreat

To assess the value of overseas property values, the current rent, property prices and exchange rate levels should be considered. The pound against the Hong Kong dollar has fallen more than 15% since the Brexit, while property prices have fallen more than 8% over the same period. In disguise, the current purchase of UK property shares is about 25% discount. He said that if the pound sterling falls first and then rises after buying a flat, Hong Kong buyers can earn the exchange rate. As the average building is not completed, the buyer only needs to pay 20% for the first period. The remaining 80% will be gradually repaid in the next one to two years. . He has a good long-term view of the British economy. It is expected that property prices will also be speculated and the exchange rate will stabilize.

Short-fried can be used in Southeast Asia

Different investment years should have different site selections. He suggested that investors should short-sell Southeast Asian properties, and the mid-line investment in areas with great potential for development in the Mainland will buy long-term UK properties. Although the expected increase in residential property prices in the United Kingdom, the United States, Australia and Canada is not significant in Cambodia, Thailand and Vietnam, the former has higher resilience and lower investment risks.

However, many Hong Kong banks have provided overseas mortgage services, but they are limited to some countries. Therefore, buyers should go to local or overseas banks to check the feasibility and terms and conditions before making investment decisions, so that they have a better budget. He estimates that if the buyer can pay the first three to four percent, the monthly rental income should be able to offset the mortgage payment.

Pay attention to the lease term of the land lease

There are a wide variety of property leases, which are divided into permanent deeds and leases. The lease is limited to a period of 250 years or 999 years. After the lease is over, the big owner has the right to take back all land use rights. He reminded that buyers must see the terms before signing the contract. If you have questions about the terms and conditions, you should find a reliable intermediary agent to inquire.

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