The new favorite of overseas asset allocation: Hong Kong insurance!
2023-11-02Why do you prefer to register a Hong Kong company to expand your business overseas?
2023-11-10In most people's perception, real estate is a sure-fire investment model, and it is actually true that real estate exists in real terms compared to the void of stocks, securities, and futures.
Compared with stocks, futures, international exchange rates and other forms of investment, overseas home ownership "play" is relatively simple.Overseas real estate has some "unique characteristics" that give it an advantage over domestic real estate investment.
What are the "unique features" of overseas real estate?
▶ Homeownership:
The property rights of a house in China are usually 40, 50 or 70 years, while when buying an overseas property, the buyer usually enjoys a property right of at least 99 years, and most of them are freehold.
▶ For down payment:
The proportion of down payment to the full payment for Chinese real estate is at least 30% (the actual proportion is around 40%), while the down payment amount for overseas real estate is generally between 5%-50% of the full payment.
▶ Loans:
In China, loan repayment obligations generally begin as soon as the buyer signs the property contract, while overseas purchases begin after the delivery of the current home.
▶ Aspects of legal security:
In China, buyers can purchase properties on their own and usually do not bring their own lawyers, while overseas, the purchase of real estate requires the intervention of lawyers, which protects the rights of buyers and avoids a lot of risks.
▶ In terms of rental returns:
Rental returns for domestic properties range from 0.7%-3%, while rental returns for overseas properties generally range from 2.5%-10%.
▶ Homeownership rate:
Domestic real estate is said to be the floor area, most of them are still rough housing, overseas real estate is said to be the indoor use of area, and the standard of delivery are well-decorated, and some also with furniture package.
Warren Buffett once said, "Life is like a snowball, and likewise wealth needs to snowball."Investing in overseas real estate can snowball as well.
In the core area to buy a set of quality real estate with the potential for appreciation, the buyer to use the future appreciation of the property part of the investment in the next set of real estate down payment, the second set of real estate as above, to realize the "property fission".
At the same time, the "new middle class" continues to grow. With the "new middle class" as the main home-buying group gradually returning to the mainstream market, the investment mentality is becoming more mature, more in pursuit of asset stability, the purpose of investment has changed to asset allocation, tax planning, etc., through pure leverage investment to realize the "house to house", "Rent to support the loan".
Overseas property has undergone nearly 20 years of development and change from its initial function of self-occupation to today's function of asset allocation, and its importance has gradually been recognized by investors.