According to the reporter's understanding, under the "enticement" of generous returns, overseas real estate purchases are continuing to heat up. According to a public report, my country's personal overseas assets have grown rapidly in recent years, with an average annual compound growth rate of 100% from 2008 to 2010. It is estimated that in the next 10 years, the total overseas investment of Chinese investors is expected to reach 2 trillion US dollars.
So as a Tianjin citizen who is new to overseas real estate, what should we pay attention to? The reporter interviewed the relevant person in charge at the exhibition site.
Land ownership
It is understood that the biggest difference between buying a house abroad and buying a house domestically is the land ownership on the issue. In our country, only the right to use land can be transferred, and the ownership belongs to the state. The maximum period of use right is 70 years. Land in many overseas countries is privately owned. Generally speaking, real estate purchased overseas is an individual's permanent property, with basically no time limit. There are also some areas where real estate has property rights, but the lifespan is more than 90 years. For example, some properties only have land lease rights with a tenure of ownership. The land use life of properties in Thailand is 90 years, and must be returned to the government after expiration.
Therefore, when investing in overseas real estate, the quality of the real estate may not be the most important. The appreciation prospects and investment value of the land occupied by the real estate are more critical. question.
House price trends
Before purchasing overseas real estate, you must make a comprehensive study of local house price trends Understand that only by choosing properties that are on the rise can you get ideal returns. Before investing in overseas real estate, of course, you cannot completely believe the one-sided words of some agency companies. It is inevitable that they will be biased or even exaggerated and concealed. Investors must make preparations in advance and be familiar with the humanistic environment, social dynamics, and Get a comprehensive understanding of relevant policies and economic development conditions.
According to reports, when it comes to investing in real estate in Kuala Lumpur, it is the capital of Malaysia. 30% of the population in Malaysia is Chinese and can speak Mandarin, Cantonese, and Fujian. InsideLocals can live normally in Kuala Lumpur, and there is not much difference with domestic culture. Moreover, prices and consumption levels in Malaysia are generally lower than those in first- and second-tier domestic cities. In addition, the total local tax on home purchases is about 2% of the total house price, and the housing price growth rate in Kuala Lumpur is basically 5% year-on-year. If you use the property you purchase as a rental investment, the price growth rate in the rental market is also about 6%. To 7%, it can be said that the income is very considerable.
In addition, investors also need to understand what cycle the local market is currently in. According to the mainland’s real estate investment model, choosing a good location can get good returns. However, the development of the overseas real estate market has its own cyclical nature. If it enters a downward cycle, even if you invest in a top location, there is no guarantee that the investment will be successful. Therefore, choosing the cycle of the real estate and choosing at what point in time to enter this market are also critical issues. .
Exchange rate risk
This is the most important issue for most overseas buyers at present. The term of real estate loans is generally relatively long, during which the rise and fall of interest rates will have a greater impact on home buyers. Therefore, it is best to choose a country with a relatively stable currency exchange rate for investment.
Management fees
Many countries have strict regulations on property management, such as the regulations of the City of Melbourne, Australia , the garbage or snow in front of the house must be cleaned up by the owner himself. If the cleaning is not done within the time limit, the municipal department will do it for him, but the owner must pay the corresponding fees. And if these fees are not paid in time, it will cause greater trouble for yourself and even affect your personal credit record.
Taxes
Overseas homebuyers must be clear about the taxes and fees incurred during real estate transactions before investing. Understand the situation and measure whether the tax costs can be afforded and whether they will have any impact on future residence or income. Overseas taxes related to real estate mainly include deed tax, land tax, stamp tax and value-added tax. It should be noted that deed tax is only levied in some countries, such as Thailand, Malaysia and other countries, and the levy standard is about 1.5% of the house price. European and American countries mainly levy land tax, which is levied once a year.
Of course, there are also some areas where there is no tax or very low tax. For example, the Cayman Islands shown at this housing fair is one of the world's "tax havens". All local taxes are far lower than those in other countries or regions, and some taxes are almost zero. For example, there is no local property tax or capital gains tax. In terms of real estate investment, there is no rental income or dividend income.There is income tax.
In addition, relevant taxes and fees will also be incurred when selling real estate. The main levy is value-added tax. For example, in Australia, the maximum is 45% of the value-added part, so it is recommended Investors must learn to avoid taxes reasonably. For example, the interest generated on the loan for purchasing a house in Australia, the cost of decoration and renovation, the cost of traveling to Australia to inspect the property, lawyer fees, home inspection fees, etc. can all be used to deduct taxes.
Industry insiders remind overseas buyers that they must fully investigate and consider before investing, paying special attention to the brand and strength of the developer, the location of the property, Factors such as the degree of project support and local cultural background. During the home buying process, it is best to hire a professional agency and lawyer. It is difficult for ordinary home buyers to fully understand the loan policies of investment locations, so hiring professional institutions and individuals can enhance the security of the transaction. At the same time, investors must also understand and be mentally prepared for the cultural differences between the East and the West. In addition, choosing which management property is suitable for their investment is also an issue that investors need to carefully consider and understand in detail.
Finally, political risks also require overseas buyers to pay full attention to: what is the relationship between the two countries and what is the country's policy towards China? These are all things that must be clarified before buying a property. family property.
