Why buy overseas real estate? What are the advantages of overseas real estate investment?

First, we analyze the advantages of investing in overseas real estate from the perspective of investors’ familiarity with asset allocation categories.

In the decade from the 2008 financial crisis to the decade of China’s rapid economic development, real estate income created China’s middle class. The Chinese people's enthusiasm for real estate investment is not simple and blind. From an absolute return point of view, the income from real estate investment has indeed outperformed many asset classes.

So relatively speaking, Chinese investors are relatively familiar with this asset class, and allocating overseas real estate is also easy for investors.

Let’s look at the investment advantages of allocating overseas real estate.

1. From the perspective of investment income, investing in overseas real estate, on the one hand, is to obtain investment income through the increase in the value of the property itself. 10 years ago, the Beijing real estate market was not as hot as it is today, so the timing of investing in real estate is very important. Looking at the global real estate market, investing in the initial stage of the real estate market and seeking arbitrage space is a good choice.

The other is to obtain annual cash flow income through property rental. Overseas rental yields tend to be very high.

2. Advantages such as overseas education, air quality, laws and regulations, and food safety prompt Chinese people to move overseas and allocate overseas real estate to meet their urgent needs. For example, many parents will choose housing in a good school district so that their children can receive a better education (high-quality schools will determine the priority ranking of applications based on whether students belong to the school district). Foreign countries attach great importance to food safety and environmental issues. After Chinese people purchase overseas properties and immigrate overseas, they will be able to enjoy safer and healthier food and living environment.

3. Real estate is an investment method for reasonable tax planning. Tax planning is an issue that high-net-worth individuals must pay attention to in wealth management. Take CRS as an example. It targets financial accounts and does not involve non-financial accounts. Specifically, it can include real estate, artwork, calligraphy and painting, aircraft and yachts, jewelry, etc. wait.