What are the advantages and disadvantages of Thai real estate compared with Chinese real estate?

The most popular countries for overseas investment and property ownership by Chinese people have a lot in common: most of them have stable economies, stable currency exchange rates, sound real estate policies, and mature real estate markets. Moreover, most of these countries' currencies have been strong in recent years. Compared with the pressure of domestic RMB depreciation, investment in real estate in these countries is very profitable on the basis of risk aversion.

Comparison of the advantages and disadvantages of real estate in overseas countries

1. What are the advantages for Chinese people to buy houses and invest in Thailand?

1. Freehold property rights, no inheritance tax

In Thailand, foreigners can legally hold freehold apartments with no inheritance tax and can be passed down from generation to generation.

2. Low housing prices and no shared area

The starting price of an apartment close to rail transit in Thailand is about 20,000 yuan per square meter, and the area of ??the apartment is calculated based on the use area and there is no shared area. Looking at domestic houses, the average shared area is about 25%. Buying real estate in Thailand is equivalent to a 25% discount.

3. Apartments and villas are decorated

Thailand's apartments and villas are decorated when they are handed over. Most of the apartments off-plan are finely decorated, equipped with floors, bathrooms, toilets, and kitchens. Cabinets, air conditioners, built-in wardrobes, etc. greatly reduce the cost of money and time for decoration, and are extremely suitable for foreign investors. Compared with China, if you spend millions to buy a house, you usually have to spend 20-30% of the price on decoration. Buying real estate in Thailand is equivalent to a 20-30% discount.

4. Low total price, low down payment, low interest rate; small funds leverage big assets

5. No purchase restrictions, no loan restrictions, speculate in off-the-plan properties and make big money

6. Rich medical and educational resources, suitable for living

7. High rental return rate, housing prices will continue to rise in the golden decade

8. Political stability, economic stability Growth, low taxes, and mortgage loan operations

9. Thailand has a variety of property types, which can be freely selected according to investment purposes

Thailand property types are divided into 1. Single-family villas (rental years), 2. Townhouse (lease period), 3. Apartment. Each housing type will be distributed in different regions or cities and match different investment purposes. For example, there are several main types of real estate that are more suitable for investment, studying abroad, and buying a house for retirement.

10.GRS implements diversified investment and asset preservation

Thailand targets Chinese buyers by purchasing residential real estate, an investment method familiar to Chinese investors. Real estate of a certain value and assets purchased in Thailand are not subject to domestic information monitoring. After the implementation of CRS, Thailand is not included in the exchange of information. Coupled with the stable development of Thailand's economy in recent years, the investment boom in Thailand is more intense than that of neighboring countries, which has also stimulated the development of the real estate market in various parts of Thailand. Investing in Thai real estate and diversifying asset allocation itself is an effective means of wealth preservation.

2. What are the disadvantages of U.S. real estate investment?

After reading about Thailand, let’s take a look at the disadvantages of Chinese investing in U.S. real estate.

1. Chinese investment in U.S. real estate has a certain exchange rate

Investing in U.S. real estate will inevitably face the exchange rate risk of the currencies of China and the United States. To avoid this, you need to pay real-time attention to the exchange rate and try your best to avoid it. Don't invest when tax rates fluctuate.

2. Chinese people who go to the United States to take out loans to buy houses have to bear relatively high loan interest rates

Chinese people come to the United States with visas to take out loans to buy houses, or in other words, they take out loans in the United States as foreigners. The interest rate will be higher than that of local Americans, at 5.4% or even higher.

3. The U.S. property tax policy and its property purchase taxes are relatively complex

There are 50 states in the United States, and the taxes and fees in each state are different. Different state property taxes may There will be a 5% difference! When buying a house in the United States, in addition to property tax, you also have to pay property tax, buy house insurance, etc.

4. Chinese people lack knowledge about U.S. real estate transactions

This is a problem that people who buy houses in the United States for the first time will encounter. In fact, it is not difficult to solve. You need to learn more about it online. The transaction process and real estate knowledge of buying a house in the United States. The most important thing is to find a real estate agent in the United States, but when buying a house in the United States, you must pay a certain fee to the real estate agent.

5. The United States has a high inheritance tax

The inheritance tax is high because it is only levied when real estate is used as an inheritance and is gifted, and it is levied on U.S. nationals with a value exceeding US$600,000. Estates and gifts worth more than $1 million are taxed. Foreigners can donate up to $14,000 each year tax-free, but their inheritance in the United States is only tax-free at $60,000.

3. Disadvantages of investing in Australian real estate

Australia’s beautiful environment and high welfare have always attracted many Chinese to buy houses and settle in Australia. The hot Australian real estate market has also attracted Many Chinese people have come to invest in Australia. No matter which of the two situations, there are actually many disadvantages to investing in and buying a house in Australia.

1. Foreigners coming to Australia to buy property will encounter policy restrictions

Australian law stipulates: Foreigners in Australia or people holding short-term visas (more than 12 months) If you want to buy a completed residence, you need to apply to the State Administration of Foreign Exchange, and you can only purchase one completed (second-hand) residence, which can only be used for residence and not for investment; if you want to buy a brand-new residence (not sold by the developer) , and has not been occupied for more than 12 months) or the use of Australian land to build residential buildings, it is also necessary to apply to the Foreign Investment Review Board and continue construction within 24 months after approval.

2. Comprehensive supervision of foreign home buyers

Faced with these circumstances, the Economic Committee’s report proposed 12 recommendations to the Australian government for the management of foreign investment in residential real estate in Australia. The Economic Committee hopes that these recommendations will constrain the Australian government and relevant departments to maintain a more responsible attitude and transparent management during the review process of foreign investment.

3. Australia’s racial discrimination against foreigners

The biggest obstacle for Chinese people to invest in Australian real estate is the racial discrimination of local Australians towards foreigners, and Chinese investors Negative attitudes in Australia. Australia generally believes that investment by foreigners, especially Chinese, has pushed up their housing prices, leading them to introduce stricter restrictive policies on foreigners purchasing Australian real estate.

For Chinese investors, they will also face more stringent review systems and management processes, which will also, to a certain extent, make Chinese people’s investments in Australia more cautious and rational.

4. Disadvantages of investing in European real estate

In recent years, the Chinese have gradually discovered the advantages of Europe’s excellent living environment, stable real estate investment returns, and complete service facilities, and have successively turned to investing in European real estate. migrant. Compared with Thai real estate investment, what are the disadvantages of European real estate investment?

1. There are certain overseas investment risks

The economic situation is changeable and anything can happen. A country's market and prosperity are affected by many factors. Although it is certain that the European international market environment is unlikely to be severely impacted, as far as investment is concerned, the market has begun to exist since the UK left the EU. There is a certain degree of high risk. It is still risky to invest rashly if you do not understand the investment environment.

2. European house purchase trap

Although many people call some of the deceptive behaviors that Chinese investors encounter when buying houses in Europe European house purchase traps, in fact, these house purchase traps It is very common in Europe, for example: eating the difference in house prices, signing false leases, etc. But it’s easy to see through it. When buying a house, seek help from a professional and authoritative overseas real estate agency, or ask the intermediary to issue a professional real estate report to clarify the value of the property. For properties with high rental returns, be more cautious and compare surrounding rent levels to take a closer look. Lease termination clauses and other methods are sufficient, but like the United States, purchasing a property requires paying a fee to a real estate agent.

5. Disadvantages of investing in Singapore real estate

Singapore is the latest emerging country in Southeast Asia. In addition, Singapore’s good medical environment and green card investment policies have always been popular among Chinese investors. But Singapore also has real estate disadvantages.

1. Foreigners are not allowed to invest in HDB flats; they need to pay high property taxes

Only local citizens of Singapore can purchase HDB flats, and foreign investors are not allowed to purchase and use HDB flats in Singapore. Generally, there will be no shortcomings and defects. Just like in China, purchase based on access qualifications and needs. Equivalent to affordable housing in China, most locals in Singapore live in HDB flats, which are much cheaper than apartments. In addition, buying a house in Singapore requires paying high property taxes just like the United States.

2. Singaporean real estate has a useful life

Singapore’s housing property rights are not a permanent property model. There are three types of real estate models in Singapore: HDB flats only have housing property rights. After 99 years, it will be owned by the government; after the developer purchases the apartments developed on the land, the property rights will only be owned for 99 years or divided into two types: 999 years; there is also a type of land residential property rights for 999 years or permanent.

6. Disadvantages of investing in real estate in Malaysia

Malaysian real estate is adjacent to Singapore. Under the influence of Singapore, Malaysia has become the first choice for investment in Southeast Asia. The good climate and language Without much consideration, coupled with the rise of new hype about Country Garden Forest City, Malaysia once became a popular country for investment. However, after the news broke, everyone realized that investment in Malaysia is actually the biggest pitfall.

1. You can get a green card by buying a house in Malaysia

The rise of Country Garden in Johor Bahru has made the craze of giving a green card when buying a house a standard in Malaysia. In fact, Country Garden Second Home is not listed as a Malaysian government project. There is no green card that can be given directly by buying a house. Buying a house and a green card in Malaysia are two different things. In addition, the educational resources are not among the world's top schools, and the environment for investing in buying a house and providing a retirement environment is inconsistent with the promotion of Country Garden Forest City.

2. Purchasing Malaysian real estate requires paying various fees

First of all, purchasing Malaysian real estate requires paying legal fees, GST tax, personal income tax, etc.; but if these are not required when investing, If you pay, it means that the developer has already paid in advance, and the price of the house will then become higher.

3. High taxes are required to purchase real estate in Malaysia

Foreigners investing in real estate in Malaysia must pay 30% of the value-added if they transfer it within 5 years, and pay the value-added after 5 years. 5%, while locals in Malaysia pay 30% of the value-added part within 3 years, 20% of the value-added part in the 4th year, 15% of the value-added part in the 5th year, and are tax-free for more than 5 years.

4. Malaysia is socially unstable and famous for anti-Chinese.

Malaysia is a Muslim country. Like Indonesia, it is famous for anti-Chinese. The social environment and public security are generally unsafe, which will affect the investment environment. It is somewhat disadvantaged compared to other countries. In September 2016, about 30,000 Malays gathered in the city center to support Prime Minister Najib, who was troubled by the embezzlement scandal, and condemned the Chinese political parties for launching a large-scale anti-Najib demonstration at the end of last month.

Malaysia has a long history of tense racial relations. Malays make up two-thirds of the country's population and have always played a leading role in politics and society. The Chinese account for a quarter of the population, but have significantly more wealth than their proportion of the population. There were anti-China riots in Malaysia in 1964 and 1969. It was after the riots in 1964 that Singapore separated from Malaysia and established its own nation.