If you’re looking to shift your focus to international investments, China is a great option. Real estate is always a great opportunity for growing your money.
A lot of moving and shaking has been happening in the Hong Kong real estate market, which is why you should do your research.
To learn the ins and outs of real estate in Hong Kong, and what developments should inform your decisions, read the information below.
The Hong Kong Real Estate Market is at Risk of a Bubble
The Hong Kong real estate market has been thriving in recent years. However, analysts caution that this may be the sign that a bubble is approaching.
In fact, many are calling Hong Kong’s real estate market the most overvalued on the planet. These cost of home prices has grown by greater than 10% in the past year. The housing market has been growing at this rate ever since 2012 and does not seem to be slowing down anytime soon.
Hong Kong, along with cities like Amsterdam and London, run the risk of seeing property values plummet following healthy months and years.
If you are considering investing in Hong Kong real estate, it’s important that you be aware of these risk factors, so that you can get the most out of your decision as a whole.
You Need to be Aware of Taxes and Laws
Before looking into houses for sale Hong Kong, you need to know exactly what you’re getting.
Everyone considers the upside to real estate investing, but you need to also be aware of taxes, ordinances and other factors that come into play. In Hong Kong, the government is considering a stiff tax on vacant apartment buildings to combat the expensive cost of property in the city.
A lot of developers are against this tax, but it’s something you need to consider before investing. Snagging a nice rental is great if you have tenants, but you might regret it if you can’t keep it occupied.
Take the time to learn about this and other tax laws before jumping into the real estate market.
Stay Tuned to Government Developments
There are governmental developments you need to be aware of outside of taxes.
Since this is such a populous city, it is privy to global ramifications. Most recently, decisions by the United States Federal Reserve affected Hong Kong mortgage rates.
Changes in Chinese government will also have a direct effect on your property values. It’s important that you make an effort to learn Chinese politics and remain up to date with new issues.
Be Aware of Lending Options
Finally, it’s crucial that you explore your lending options as well.
Earlier this year, Hong Kong’s most notable banks increased their interest rates. It doesn’t appear that these rates will lower or level off for the foreseeable future.
When interest rates are high, you need to be sure that you only seek lending for winning properties, so you can minimize risk.
Get in Touch With Realtors That Can Help
If you need to learn more about the Hong Kong real estate market and any other market, you need to touch base with professional realtors.
We’d love to hear from you about your real estate concerns. Touch base with us and visit our site to find out more about our services.