subject: Investment Property Vultures Helps Hong Kong Property Investors Purchase In The US [print this page] Investment Property Vultures Helps Hong Kong Property Investors Purchase In The US
In a recent interview in the United States, property magnate Donald Trump is quoted as saying: "This is the best time I've ever seen to buy real estate". It appears that Hong Kong investors agree.
In a Barclays Wealth survey, Hong Kong investors overwhelmingly selected the US as the top destination of interest for this year, with Britain and the mainland tied for second place.
The surge in interest is fuelled by a combination of low prices and historically low interest rates. Average US home prices fell by more than 30 per cent since they peaked in 2006, with experts agreeing that the market hit bottom in mid-2009. In some hard-hit cities, including Las Vegas, Phoenix, Orlando and Miami, prices fell by more than 50 per cent. Since then prices have stabilized and modest gains were reported in major markets in the first quarter of this year.
There are many other reasons that are attracting Hong Kong investors to the US:
Affluent house hunters from across Hong Kong will begin a search of cheap homes to buy and their goal: to find investment property or housing their children could use when they go to the USA to study or work.
The US markets are not homogeneous and provide diverse buying opportunities. Some markets provide better capital appreciation opportunities while others provide better rental yields. While some markets have dropped substantially, prime markets such as Orlando, Florida have the advantages of low rental vacancies and strong cash flow.
The US real estate markets are among the most transparent in the world allowing buyers to research and understand values with confidence. Hong Kong investors can also access numerous public websites to obtain information of property values, demographic and rental income.
The US encourages property ownership with numerous tax advantages for property owners that are available to both US citizens and foreign purchasers. With properly planned ownership and tax structure, taxes will be minimized and in some cases completely deferred.
The current US federal long term capital gains tax rate for real estate is 15% which is applied to the net profit of property sold after one year. This rate applies to properties in all states of the US. In some states an additional state capital gains tax is applied. Other states including Florida, Nevada and Texas have no state capital gains tax.
Due to these reasons it appears that Hong Kong investors will continue to take advantage of what is possibly the best time to buy US real estate in the last 50 years.
Many of these Hong Kong investors are opting to purchase sight unseen according to Investment Property Vultures. The Orlando, Florida based company specializes in bringing exactly these illusive property deals to the Hong Kong buyers. Mainly they offer foreclosures and distressed properties but also, government owned properties. Investors anywhere in Asia including China and Singapore can contact them via their website www.investmentpropertvultures.com or email them at info@investmentpropertyvultures.com.
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