HK Property Investors seek 100% Legal Ownership when Purchasing Overseas
Buy Berlin HK, a real estate company that specialises in Berlin property for overseas investors, exclusively revealed the results of a survey it recently conducted after the company’s launch in Hong Kong.
Darrell Smith, director of Buy Berlin HK says, “69% of respondents wanted full, legal ownership of the property they are purchasing overseas”.
He adds, “Many countries have introduced cooling measures to keep a lid on overseas investment, forcing investors to use complex loopholes in order to purchase property.”
And it appears to be having the desired effect, benefiting emerging real-estate markets such as Berlin, Germany’s much under-valued yet most promising city.
“Most people only want to invest in a property that is fully and legally theirs. This is not surprising and it works very much in favour of locations that welcome inward investment to support their growth,” says Smith.
Meanwhile, 63% of respondents rated mortgage availability as one of the most important factors, clearly demonstrating that leveraging plays a critical role for most investors who wish to maximise their long term returns.
Smith, who launched Buy Berlin over ten years ago, continues, “Accessing mortgage finance for property allows investors to take their cash and make it work harder than it could in any commodity or stock market investment. Real estate investors know this, but it requires finding the right deal and the right lender to really make it work.”
“This is a blockbuster product,” commented Smith. “Offering rates from 1.3% fixed for ten years, our clients can obtain a mortgage of up to 70% LTV. That makes it exceptionally competitive, especially when compared to the other top global markets for real estate investment.”
Whilst a 70% LTV may be nothing new, it is the huge reduction in the purchase price that qualifies for the mortgage that really changes the landscape.
“Up until now, for properties under EUR340,000, the buyer had to place a deposit of at least 50%. Now investors only require a 30% deposit for properties starting under EUR100,000, opening up a wealth of incredible opportunities given the low price points of Germany’s capital city,” says Smith.
Another result of the survey, and one that was less surprising, is that residential visa opportunities and university education are also on the minds of HK investors.
“Buyers from Hong Kong are particularly sophisticated. Not only do they recognise that Berlin provides a long term investment landscape for wealth preservation, it is also an increasingly popular destination for international students who are attracted by free university education and low living costs,” says Smith.
“Coupled with new opportunities for residency rights, Berlin is now the obvious next destination for Hong Kong investors,” he concludes.
Buy Berlin Investments is an independent property company that provides turnkey services to global investors, both individual and institutional, who wish to purchase real estate in Germany’s capital city, Berlin.
Established over ten years ago, the company recently expanded into Asia with the opening of its Hong Kong office, providing on the ground customer service in English, German and Chinese.
BuyBerlin supports its clients every step of the way – it seeks the very best properties, assists investors through the intricacies of financing, taxation and German legalities, and provides ongoing asset management in the form of property management, rentals, furnishings and eventual resale.