Mandy Wong is a National Director and the Head of International Residential Property Services at JLL Hong Kong.
t: +852 2116 8998
used English phrase ‘as safe as houses’, has been ringing true for local
investors making property purchases overseas in recent years. After the great railway bust in the
eighteenth century, investors poured their money into investments that were
secure and unlikely to see a drastic decline - which is how the phrase came
investing in property still offers the same security but the returns you receive are entirely
dependent on your choice of property. Therefore, it
is vital that you do some careful research before signing on the dotted
line. The four things I advise my clients
to do are as follows:
1. Compare properties
This is where
the first bit of research comes in. Either do some scouting yourself or ask your buying agent to help compare the property you are purchasing with similar
prospects in the area. It is important
to try and do this like-for-like where possible; for example in a big city like
London you can't compare properties from different neighbourhoods, or indeed a new
build with an Edwardian townhouse! If
you’ve done your homework, you can be sure you are paying the right price and
getting value for your investment.
2. Location, location, location
Choose a city
that has a lot going for it. Here in
Hong Kong we tend to sell a lot of properties in London for exactly this reason: it's an international finance centre, home to many multi-national corporations;
London’s global reputation for quality education ensures affluent, professional tenants; and it also has an strong resale market which has continually demonstrated
excellent returns on investment for local buyers.
3. Make the first move
If you are
buying a property off-plan try to make your purchase during the first phase of its sale as this will provide you with the best value for money. Being the early bird really will pay off; you’ll avoid future price rises from the developer and it will also leave you with
a bit more time to raise the capital needed before completion.
If you do want
to purchase a property during the first release, be sure to let your agent know
so that they can contact you directly for suitable opportunities. I always make sure I contact clients about
new projects like The Madison, Canary
Wharf in advance of our local marketing campaigns.
Find a good
local agent that you who will help you to manage your property, especially if
you plan to be an overseas landlord.
Building a strong relationship with that agent will help you to keep the property in good
shape, and if you are looking for more investment opportunities they should be
happy to help you find a favourable deal in the future.
The tide has turned for Thames-side property investments
'As Safe as
Houses': Four things you need to know before investing overseas
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The Madison, Canary Wharf: First phase apartments just released