Why Overseas Property

Why Property ?

Stock, Bond, Structured products sold in Bank, Foreign exchange, Derivatives. Lehman brothers event awaken many of us that all these instruments in financial market are on paper, a stock can drop to $1 in one day because of fault, bond can drop to $1 in one day because of default, derivatives can drop to $0 in one day because of expiry or knock out, currency can drop 20% in one day because of change of government policy. 

Property value including three parts: Physical asset – the house, the apartment; and the legal right: which we called ownership of asset; land, whether it is freehold or leasehold.Unlike many developed countries, Hong Kong do NOT have pension retirement schemes.   Inflation and Cash flow make property an attractive instrument to invest and for retirement or long term saving, capital appreciation together with rent rise, even at the worst time property can bring in steady cash flow. 

Why Overseas?

Hong Kong property market is historical high, and rental yield is historical low. Rental need to link with economy, with salary of people, demand and supply. The government may have policy change at any time affect the property market. We never know exactly when will it happen. Although there are few tightening measures already put in place, but we found that the market still rising. Whenever the market is too high, the risk of going lower will increase, we never know exactly when will it happen. 

While there are many opportunities worldwide, UK has BREXIT, GBP has dropped to historical low, MYR has dropped since oil price has been weakened last year.  These are opportunities we can use limited amount of money to investment relatively larger property and get double, triple rental yield compare investing in Hong Kong. With higher yield, the price will also go higher because of demand and supply. 

Only a handful of land in Hong Kong Island has 999 -year leasehold, the majority is 99 years, all new buildings only have up to 2047, it is 1997 British handover plus 50 years. 50 years unchanged, it is in accordance with the Basic Law, the Sino-British Joint Declaration, absolutely have legal ground. China’s land is 70 years leasehold, China has founded for 45 years only, so no one knows what will happen after 70 year lease end yet. Ownership of overseas property can last forever if it is freehold and many of leasehold are from 125-999 years, can inherit from generation to generation. That is how wealthy families accumulate wealth. 

What is next? The Belt and the Road, BREXIT, long term domestic demand, these factors make a lot of opportunities to invest overseas.

Average yield start from 5/6% to 10/12% for rental and overall return can reach 18/20% p.a. if you find the right market and project to invest on.

Hong Kong properties are small in size, go for larger in other countries for better living when retired, and investment return, appreciation.  Act earlier, let time and money work for you and your future !

This is not only a dream but a dream come true. It is much more affordable and easier than you think.

 

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