The most popular countries for overseas investment and home ownership have quite a lot of **** in common: most of them have stable economies, stable currency exchange rates, sound real estate policies, and mature real estate markets. And most of these countries have strong currencies in recent years, compared to the domestic depreciation of the RMB pressure, based on these countries for home ownership investment, it is possible to realize the role of profitability on the basis of risk avoidance.
Contrasting the advantages and disadvantages of real estate in overseas countries
What are the advantages for Chinese to buy real estate investment in Thailand?
1. Freehold, no inheritance tax
In Thailand, foreigners can legally hold freehold condominiums with no inheritance tax, which can be passed on from generation to generation.
2. Low price, no common area
The price of condominiums in Thailand near the rail transit starts at about 20,000 RMB per square meter, and the area of the condominiums is calculated according to the area of use with no common area. If you look at a domestic house, the average common area is about 25%, so buying a Thai property is equivalent to a 25% discount.
3. Condominiums and villas with decoration
Thailand's condominiums and villas are all decorated at the time of handover, and the vast majority of condominiums are well-decorated and equipped with flooring, bathrooms, toilets, kitchen cabinets, air conditioners, built-in closets and so on, which greatly reduces the cost of renovation in terms of money and time, and is extremely suitable for foreign investors. Compared to the domestic, spend millions of dollars to buy a house, usually have to spend another 20-30% of the price of the renovation, the purchase of real estate in Thailand is equivalent to a discount of 20-30%.
4. low total price, low down payment, low interest rate; small capital prying big assets
5. not limited to purchase, unlimited loans, speculation on real estate spending, make a lot of money
6. health care, education resources are rich, suitable for living
7. high rental return, housing prices into the golden decade housing prices will continue to rise
8. political stability, stable economic growth, taxes and fees Low tax, mortgage loan operation
9. Thailand has a variety of property types, which can be chosen freely according to the investment purpose
Thailand's property types are categorized into 1. detached villas (rental years), 2. townhouses (rental years), and 3. condominiums. Each type of housing will be distributed in different areas or cities and match different investment purposes. Such as investment, study, pension to buy real estate are more suitable for several major types of property types.
10.GRS implementation of diversified investment, asset preservation
Thailand through the purchase of residential real estate, a familiar investment method for Chinese investors, targeting Chinese buyers, to buy a certain value of real estate in the country, assets purchased in Thailand is not subject to the domestic information monitoring, after the implementation of the CRS, Thailand is not a country in the exchange of information. In addition, Thailand's economy has been developing steadily in recent years, and the investment boom in Thailand is hotter than in neighboring countries, which has stimulated the development of the real estate market in various parts of Thailand. Investing in Thai real estate and diversifying your asset allocation is an effective means of preserving your wealth.
2. What are the disadvantages of investing in U.S. real estate?
After looking at Thailand, let's take a look at what disadvantages the Chinese have in investing in U.S. real estate.
1, Chinese investment in U.S. real estate has a certain exchange rate
Investment in U.S. real estate is bound to face the exchange rate risk of the U.S. and China currencies, to be avoided, you need to pay attention to the exchange rate in real time, and try not to invest in the tax rate fluctuations.
2, Chinese people to the United States to buy real estate loans need to bear higher interest rates
Chinese people with visas to the United States to buy real estate loans, or foreigners in the U.S. as a loan, the loan interest rate than the U.S. locals to be higher, will be in the 5.4% or even higher.
3, the U.S. property tax policy and its purchase tax is more complex
The U.S. has 50 states, each state's taxes are different, different state property tax may vary by 5%! When you buy a home in the United States, in addition to property taxes, you will also have to pay property taxes, purchase homeowners insurance, and so on.
4, the Chinese lack of knowledge of the U.S. real estate transactions
This goes for the first time to the U.S. to buy a house will encounter problems, in fact, is not very difficult to solve, to learn more about the U.S. to buy a house on the Internet to the transaction process and real estate knowledge. The most important thing is to find a realtor in the United States, but in the United States to buy a house must pay the realtor a certain fee.
5, the United States has a high inheritance tax
Inheritance gift tax is expensive, because when real estate is taken as an inheritance and was gifted only when levied against U.S. nationals more than the value of 600,000 U.S. dollars worth of inheritance and each time the value of the gift of more than 1 million U.S. dollars worth of goods before the tax. And while foreigners can gift $14,000 per person per year tax-free, there is only a $60,000 exemption for estates in the United States.
Three, investment in Australian real estate disadvantages
Australia's beautiful environment and high welfare, has always attracted many Chinese to Australia to buy a house to settle down, and Australia's hot real estate market, but also attracted a lot of Chinese to Australia to invest in, whether it is the case of the two, however, Australia's investment in buying a house in the disadvantages of the existence of a lot of actually The following are some of the reasons for this.
1, foreigners to Australia to buy property will encounter policy restrictions
Australian law: foreigners in Australia or hold a short-term visa (more than 12 months) if you want to buy a completed home, you need to apply to the Foreign Affairs Bureau, and can only buy a completed (second-hand) homes, and can only be used for residence can not be used for investment; if you want to buy a brand new home (not sold, not occupied, and not sold by the developer, and not occupied by the developer, and not used for investment. If you want to buy a brand new home (not sold by the developer and not occupied for more than 12 months) or use Australian land to build a home, you will also need to apply to the Foreign Investment Review Board (FIRB), and construction will be continuous for 24 months after approval.
2. Comprehensive regulation of foreign home buyers
In the face of these circumstances, the Economic Commission's report makes 12 recommendations to the Australian government on the regulation of foreign investment in residential real estate in Australia. Through these recommendations, the Economic Commission hopes to constrain the Australian government and the relevant departments to maintain a more responsible and transparent management of the foreign investment review process.
3, Australia's racial discrimination against foreigners
Chinese people investing in Australian real estate, there is a biggest resistance is the Australian natives to foreigners race actually, and Chinese investors in Australia, the negative attitude. It is widely believed in Australia that foreigners, especially Chinese, have pushed up their property prices, which has led them to introduce stricter restrictions on foreigners purchasing Australian real estate.
For Chinese investors, they will also face a tougher scrutiny system and management process, which to some extent will also promote more cautious and rational investment in Australia.
Four, investment in European real estate disadvantage
In recent years, the Chinese people gradually found the European living environment, property investment returns stable, perfect service facilities and other advantages, one after another turn to invest in the European real estate home buyer immigration. Compared with the Thai real estate investment, European real estate investment in the end has what disadvantages?
1, with a certain risk of overseas investment
Economic conditions are variable, anything can happen. A country's market and prosperity, affected by a variety of factors, although we can be sure that the European international market environment by the possibility of a big impact, but only on the investment in this behavior, the United Kingdom from the beginning of the Brexit, the market has begun to exist in a certain high-risk, if you do not understand the investment environment on the investment is still risky.
2, the European real estate trap
While many Chinese investors in Europe to buy real estate encountered some deceptive behavior called the European real estate trap, in fact, these traps in Europe is very common, for example: eat the difference between the price of the house, the signing of false leases, etc. But to break through is also very simple. However, it is very simple to break through, seek professional and authoritative overseas real estate agencies to help when buying a home, or ask the agent to issue a professional report on real estate, clear property value; for high rental return property, more cautious, using a comparison of the surrounding rental level, look at the lease termination clauses and other methods can be, but the same as the United States, the purchase of real estate need to pay a fee to the real estate agent.
Fifth, investment in Singapore real estate disadvantages
Singapore is the latest country in Southeast Asia, coupled with Singapore's good health care environment as well as investment in green cards and other policies have been the hot favorite of Chinese investors, but Singapore is also the existence of real estate disadvantages.
1, foreigners can not invest in HDB flats; need to pay high property taxes
Only local Singapore citizens can buy HDB flats, foreign investors can not be purchased to use, Singapore's HDB flats do not generally have shortcomings and defects, and China as well as the same, in accordance with the qualifications and needs of the access to purchase. Equivalent to the affordable housing in China, most of the local Singaporeans live in HDB flats, which are much cheaper than condominiums. In addition to this, buying a home in Singapore is subject to the same high property taxes as in the United States.
2, Singapore property has a life
Singapore in the housing property rights are not belong to the freehold model, the property model in Singapore is divided into three types: the government HDB flats only have the property rights of the house 99 years, after the expiry of the government; developers to land development of apartments after the purchase of property rights of only 99 years or 999 years divided into two kinds; and there is a kind of land belonging to the Residential property rights 999 years or permanent.
Six, Malaysia investment property disadvantages
Malaysia real estate and Singapore as a neighbor, by the influence of Singapore, making Malaysia first became the first choice of investment in Southeast Asia, a good climate coupled with the language is not too much to consider, and even added to the speculation on the Baker Forest City, the rise of Johor Bahru, making Malaysia once the Become a popular country of investment, but because of the news after the explosion, the people only know Malaysia investment is actually one of the biggest pit.
1, Malaysia can have a green card when you buy a house
Beijing Guiyuan New Mountain rise, making the fever of buying a house to send a green card has become the standard in Malaysia, in fact, Beijing Guiyuan second home is not listed as a Malaysian government project, and there is no buy have existed to buy a house to send a green card directly, Malaysia's buy a house and a green card are two different things, in addition to educational resources are not international first-class famous schools, investment Buy real estate pension environment of the environment is also inconsistent with the publicity of Cinnamon Forest City.
2, the purchase of Malaysian real estate need to pay a variety of fees
First of all, the purchase of Malaysian real estate need to deliver the lawyer's fees, GST tax, personal income tax, etc.; but if these do not need to pay when investing in the developer's side of the word is to have been advanced, and then the price of the house will also become higher.
3, the purchase of Malaysian real estate need to pay high taxes
Foreigners in Malaysia to invest in real estate, within 5 years of the transfer to pay the value-added part of the 30%, 5 years after the value-added part of the payment of 5%, while Malaysian locals to buy the part of the value-added part of the payment of 30% within 3 years, the fourth year of payment of the value-added part of the 20%, 5 years of the value-added part of the payment of 15%, five years of tax exemption. The tax exemption is for 5 years and above.
4, Malaysia's social instability, xenophobia famous
Malaysia belongs to the Muslim countries, in with Indonesia xenophobia famous, the social environment security is generally not safe, for the investment environment will be compared to other countries have some disadvantages, had in September 2016 when about 30,000 Malays in the city center in solidarity with the embezzlement scandal plagued by the Prime Minister Najib, and condemned ethnic Chinese political parties for staging a large anti-Najib demonstration late last month.
Malaysia has a long history of tense race relations. Malays make up two-thirds of the country's population and have always played a leading role in politics and society. The Chinese make up a quarter of the population but have significantly more wealth than their share of the population. Malaysia was the scene of anti-Chinese riots in 1964 and 1969, and it was after that 1964 riot that Singapore became independent from Malaysia.