Buy-to-let international real estate has become a popular investment. Major benefits are:
Equity growth – as you pay down the mortgage, your property should appreciate in value; this is equity, which is a tremendously valuable asset to be passed on to heirs.
Long-term stable investment – rental property is an appreciating asset in most cases despite peaks and dips in the market from a long-term perspective.
Rental income – buying a property and renting it out generates cash flow each month to serve as both an immediate and long-term source of income.
Rental properties are a great way to fund part or all of your retirement. They produce steady, predictable income without depleting your principal. They also have many tax advantages and other benefits for retirement.
An investment equity of HKD20M in rental properties (for example, two to three unleveraged buy-to-let two-bedroom apartments) would generate a minimum of HKD600,000 rental income per year (HKD50,000 per month) assuming the properties are at a 3%* rental yield. By leveraging the capital to secure a mortgage against the property in a low interest rate environment, it helps to build a property portfolio, it would also amplify the investment return.
*Subject to market conditions and the development, all carrying costs are not taken into account
You can use property as a strategy to help cover the costs of your children’s education. Property can top up your existing wealth so your child leaves higher education in good financial shape.
Unlike other investment options, many property purchases can be structured to take advantage of tax benefits. This strengthens your ability to maximise your available capital. Harris Fraser has tax advisors to help you.
How do we select real estate projects?
We only work with trusted developers who have a strong track record. Before introducing the project to our clients, we conduct thorough due diligence on the developer, inspect the sites and carry out independent market analyses.
Real estate is all about location. We pay attention to transportation, accessibility and market prices to ensure that our clients’ purchased properties are rentable and marketable.
We select our real estate projects with consideration for the global and local property market performance. Our real estate services aim to provide investors with optimum returns and capital appreciation over a mid- to long-term period.
Letting and management solutions
For all of our projects, post-sale service is provided either by the developers themselves or by a reliable third party. These services range from snagging and defect inspections against developer specifications to general day-to-day property management.