Wise Choice for Expatriates
Frequently Asked Questions
[-] Why should investors choose China and Singapore instead of somewhere else?
China is an emerging economy with strong growth and it set to be the 2nd largest market after USA. Therefore the property market has only started since 1998, there average capital yield is 20% with an annual rental of at least 5%. This is coupled with a re-valuation of the Yuan which provided a 3 tier returns for potential.
As for Singapore property market, many experts have considered that it is undervalued as compared to developed countries like Hongkong, Tokyo, New York and London. More over, with good government policy this ensures that the property markets will not crash. (Singapore is the one of the country in Asia that is unscarred by Asian financial crises). The Expat community in Singapore is very large which forms the large part of the rental market. This in turn, coupled with low tax policy makes investment much more attractive.
[-] Is it safe to invest property in China?
Ever since 1998, the Chinese government has drawn up many legislative to govern the framework of the property sector. Even when the property market is over filled with enthusiasm by investors, the government introduced certain policy to prevent the formation of the property bubble. In fact, more and more foreigners are acquiring properties in China every year. So not to worry, you are not alone.
[-] Is there a restriction to purchase a property in china?
There are no restrictions to foreigners owning properties. In fact lots of foreign investments have been flowing into China property market. However, there are variants in local policy. Contact our consultants for any query.
[-] How can I look for a tenant to rent out my property in china?
You can engage our consultants to look out for you.
[-] How do I collect my rental yields?
The rental collections in China are monthly basis just like any other countries. However, due to the strong growth in property rental market, tenants are willing to pay bi-yearly or yearly just to ensure their rental does not increase when the market rental yields are adjusted. Expats Wise can assist our customers to look for tenants as well as collect their rentals on our customers’ behalf. Expats Wise is a one- stop property investment as well as a property management consultant.
[-] I don't have confidence in the Chinese Government
Chinese Politics: stable. Many people believe China is politically unstable and find it difficult to trust the Chinese government. Since 1978 the CCP has engaged in a wide ranging programme of economic and social reform aimed at modernising the economy and developing China's external relations especially with the West. As a result China is now the fourth largest economy in the world and on course to be the largest. With over 60% of GDP from export and import, this growth will only be sustainable through maintaining strong relations with international partner. Is the Chinese government likely to jeopardise this?
[-] I am concerned that all property in China is bought under leasehold
Ownership Title: Currently all ownership is on a leasehold status. China operates under a 'land use right' system, in which the developer hands over the right to use the land to you on purchase. Leases range from 50 to 70 years depending on the district and land type. It is also possible to extend the duration of the leasehold under the recent approved law of China in 2008.
[-] China is too far away and hard to get to
Distance: a click of a mouse. Many investors question "is it too far away?" Your property will be managed, serviced and run by an onsite management company whilst your income funds can be managed and monitored online through a HSBC Premier bank account. Your investment will be essentially hands-free. Should you wish to visit, flights are readily available and not as expensive as many believe (£350 to Shanghai with China Eastern for example). If your property is an investment and not for your own lifestyle, it will generate you profit whilst being someone else's lifestyle, wherever in the world. Is your property for your use or theirs?
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