You can refer to the article “What is a collective investment scheme?” for further information.Investing in Rental Properties for Beginners
#PROPITY INVISOR PROFESSIONAL#
CIS that are not authorised by the SFC can only be sold to professional investors or pursuant to one of the other exemptions under the SFO. In general, CIS must be sold by an intermediary licensed or registered with the SFC. Investments in hotels, serviced apartments, student dormitories and shopping complexes are more likely to be CIS as it is more likely that they need to be managed on behalf of investors. In addition, the rent you receive may not come from the unit you own, but may be pooled. Instead, there may be a centralised letting and management service to take control of the day-to-day management and leases of your and other investors’ property units. However, if the property investment is a CIS, you will not have day-to-day control over the management of the property. For example, you can decide whether you would like to lease out the property, who you would like to lease it to, and how much rent you would like to charge. Instead, they may be collective investment schemes (CIS), the sale of which to the Hong Kong public is subject to restrictions under the Securities and Futures Ordinance (SFO).įor the usual property investment, you should have day-to-day control over the management of the property after buying it. In fact, media reports on overseas property failing to complete, or differing to a large extent from what was advertised before completion, are not rare.īy nature, some investments in overseas properties are not simply buying and selling real estate only. Since you may not be able to personally and regularly check on construction progress, buying an uncompleted overseas property may involve higher risks. Completed or uncompleted property: the property developer may offer additional incentives when you are buying an uncompleted property (pre-construction), but that also means higher risks.Estate planning: if your overseas properties will form part of your estate planning, you should also understand the relevant local laws and taxes.Compare the loan-to-value ratios, interest rates, repayment periods, as well as the available currencies of the mortgages offered by different banks. Mortgage: if you need to take out a loan for the purchase, look for a bank that can give you a mortgage for overseas properties.Also local taxation policies may change from time to time. Certain countries impose a capital gains tax on property investment and foreigners may also be charged property levies. Familiarise yourself with the taxes involved in the sale and purchase of properties.
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