Selling Your Overseas Property To Chinese Investors
The Chinese economy may have slowed down, but the country’s strong appetite for overseas real estate continues to be as strong as ever. Cash rich buyers from China continue to be the biggest buyers of overseas properties around the world.
This is in spite of the fact that the Chinese stock market has suffered a fall recently and the value of the renminbi, the Chinese currency, has taken a hit. The interest of wealthy, high net worth Chinese buyers has only increased because this as there is now a much stronger motivation to invest in properties abroad.
Indeed, it doesn’t look like a 1% to 2% devaluation of the remnimbi is going to have any impact at all on cash rich Chinese buyers. They will continue to invest heavily in overseas property, although there might be changes as to where they invest.
The Chinese government has moved on to curb the outflow of capital out of China by putting a $50,000/year cap on overseas property investment. But the wealthy Chinese individuals have got around this buy sending money through family and friends living abroad.
Many have channelled funds through export oriented businesses and others have planned meticulously to invest as much as possible on buying overseas homes and apartments. Indeed, the new regulations from the government have only motivated more Chinese buyers to invest abroad.
What began as a trickle is now turning into a flood. There is no let up in the massive interest shown by Chinese individuals in overseas property, especially in Europe.
What motivates Chinese buyers?
Most wealthy Chinese buyers are motivated by a few common factors to invest in properties abroad.
Investment: Wealthy Chinese investors look for higher returns, high capital gains and diversification of portfolio.
Security: It is the desire of Chinese buyers to divert a significant part of their financial assets abroad because of a need to get their money out of the Chinese government’s reach. In China, the government is known to raise taxation arbitrarily and the respect for property rights of individuals is just not there. That’s why wealthy Chinese look to buy properties in countries with stronger property rights.
Family: Many wealthy Chinese have children studying in universities abroad, so there is a strong desire among parents to be close to their kids. Also, Chinese families with smaller children feel that they would benefit from living abroad because of the cleaner environment and better law and order situation.
Residency: A number of countries incentivize Chinese individuals to invest abroad by offering special Golden Visa programs. Spain and Portugal offer residency permits to non-EU nationals who invest 500,000 EUR or more in property in their countries. Greece and Cyprus offer similar privileges for an investment of 250,000 in properties. The United States has the U.S. EB-5 visa program to encourage foreigners to invest in properties in the U.S.
So which are the top overseas property destinations for cash rich Chinese buyers?
The United States is the favourite destination of most Chinese property hunters, who have bought properties in that country worth an estimated $28.6 billion in 2015. Chinese buyers recently overtook Canadians are the biggest buyers of American properties.
Chinese buyers are among the biggest buyers of overseas properties across Europe, especially in Spain, Portugal, Italy, Cypress and Greece.
The Chinese invest heavily in Australia as well. Indeed, the rise in Sydney and Melbourne property prices over the last four or five years has been attributed to the Chinese interest in Australian properties. Chinese buyers have purchased homes and apartments worth $60 billion from 2010 to 2022 in Australia.
Canada is another favoured destination. The rise in property prices in Toronto and Vancouver have been attributed to the increasing Chinese interest in these markets.
Finally, to sell your overseas property to cash rich buyers from China, you must market it aggressively on Chinese property portals, property shows, online forums, etc. That is why hiring UK and Irish estate agents who specialise in selling overseas properties to Chinese buyers can make all the difference. If you want to sell overseas property for cash contact us today
Selling Overseas Property To Scandinavian Investors
Scandinavians among the Biggest Buyers of Overseas Property. If you’re looking to sell overseas property fast, you should consider marketing to Scandinavian buyers, who are fast emerging as among the biggest investors in properties abroad. There has always been a tradition among cash rich Scandinavians to buy overseas properties, which has held true for over 50 years. So this is nothing new.
Norwegian and Swedish buyers are among the foremost investors in Spain, as Peter Rosen of Nordica explains, “We are experiencing a lot of Swedish and Norwegian interest in buying up Spanish property at the moment. Their economies are very strong and so are their currencies, so there is a sort of dual advantage in buying when prices are so low. Clients are picking up top quality villas, townhouses and apartments for far, far less than they would have a couple of years ago.”
Fastighetsbyrån, which is a part of Swedish banking group, Swedbank, said in a report that the Swedish interest in Spanish properties had increased by 138% over the past year, while the Norwegian interest had increased by 108%. It has helped that while the Euro has declined in value, the Norwegian Krone and Swedish Krona have become stronger than ever.
Marc Pritchard, who works for the leading Spanish house builder, Taylor Wimpey España says, “The interest from Scandinavian markets continues to boom as buyers take advantage of favourable exchange rates and reduced Spanish house prices to purchase their dream second home abroad. Scandinavians, particularly those from Sweden and Norway, now make up over a fifth of our buyers in Spain – a huge increase on previous years.”
It’s easy to see why Scandinavians are so eager to buy overseas properties. After all, why spend money on a small one-room apartment in cold and crowded Stockholm or Oslo when you can get a large house for half the price in the sunshine state of Florida in the USA or a villa in Costa del Sol in Spain?
Real estate prices in Scandinavian countries have shot through the roof and are no longer affordable for the average Norwegian or Swedish buyer. Property prices in Sweden have risen by 250% since 1996. Also, higher disposable incomes have made Scandinavians more confident about buying overseas properties.
Norway’s oil and gas reserves are believed to be worth in trillions of dollars and have made Norway one of the richest countries in the world. The Norwegian Sovereign Wealth Fund is the biggest investor in overseas properties around the world. The Norwegian overseas investment is pegged to be in several billions. And it’s not just the Norwegian Sovereign Wealth Fund, even ordinary Norwegians are investing in a big way in properties abroad.
While those from Sweden and Norway are the biggest investors in overseas properties, wealthy buyers from Denmark, Iceland and Finland are not far behind. In fact, there’s obvious prosperity across all Scandinavian countries and a real desire to invest at least a part of it on buying holiday homes abroad. If you’re looking to sell your overseas property quickly, this is something you can take advantage of.
Contact us today to sell overseas property fast to cash rich Scandinavian investors.
Turkish Property Market Insight
If you’re looking to sell property in Turkey for cash, you’d be pleased to know that things have been looking up in Turkey in recent years, in sharp contrast to the pessimism that engulfed the country for the past year or so.
In 2017 there was a huge change in Turkey’s political system. Tayyeb Erdogan was appointed as the President of Turkey until 2027 through a referendum. This gives him complete power over Turkey but has also made many foreign investors wary about investing in that country.
Indeed, most people had dismissed Turkey as an authoritarian regime and predicted bad things to happen to the country’s flourishing real estate market. But things have changed a lot since then.
Towards the end of 2017, Turkey’s economy rebounded sharply. In the fourth quarter of the year, Turkey registered an economic growth rate of 11 percent, the fastest in the world, faster than both India and China.
That was stunning. Tourism had to play a big role in this. The number of tourist arrivals in Turkey rose by a record 30 percent during this period. Turkey’s citizenship program for foreign investors who invested at least $1 million in properties in Turkey was also very popular with rich, high net worth individuals from war-torn regions in the Middle East.
Indeed, property sales have been so solid that sales to foreign nationals were up by 70% in March 2018 on a year-to-year basis.
Of the 122,882 homes sold in Turkey, 2,677 properties were sold to foreign buyers. Istanbul is where most of the home sales have been happening. Antalya and Bursa have done pretty well as well.
So who is buying in Turkey?
Most foreign nationals who buy in Turkey are from the Middle East – people from Saudi Arabia, Kuwait, Iraq, and Azerbaijan. Russians are buying too.
One can understand why high net worth individuals from the Middle East are buying properties in Turkey. The United States has a very strict immigration policy these days under President Trump and this is biased against people from the Middle East.
Any property investment made by an Arab or even by a Russian in the U.SA. these days is closely examined by law enforcement agencies. There is a strong environment of suspicion.
Because of this, many Arab investors have been looking for other, more friendly alternatives. There is none that is better or friendlier than Turkey for them. This is one of the reasons why Turkey’s property market has picked up so fast after a slight downturn in 2016-2017.
Another reason is that because of the unrest in the Middle East, a lot of people want to look for safer and more peaceful alternatives, where they can raise a family.
Turkey is a stable country, regardless of its authoritarian politics.
It is certainly more stable than Iran and Saudi Arabia, where the situation has become very uncertain in recent years because of public protests (Iran) and royal coups (Saudi Arabia).
That’s why we expect things to only get better for the Turkey property market this year.
Tips To Rent Holiday Homes in Portugal
Thinking about buying or selling your property in Portugal for rental investments? One of the reasons to buy real estate in the Algarve, Portugal is because it can double up as a holiday home. Renting out your holiday home in the Algarve can be a great way to earn a consistent passive income, as long as you do it the right way. Let’s discuss how to do that.
Tip #1: Hire a local as a contact for the property – If you don’t stay in Portugal, then you should hire someone who lives there to look after the property. That person can help you out with any questions or enquiries that someone may have about it. Your guests will expect to have someone close by that they can talk to about their issues related to the rental villa.
Tip #2: Make sure your descriptions are accurate – It is very important that your adverts about the property should be accurate. Never exaggerate any of the features of your rental home. Yes, it is important to present the holiday home in the best manner possible, but never exaggerate at any stage.
Tip #3: Set the right price – Setting the rent is the same as setting the price for a property for sale in the Algarve, Portugal. You must be realistic about it and set a price based on what other homes in the neighbourhood are being rented out for. Do your research and arrive at a competitive rent for the property.
Tip #4: Encourage people to give great reviews – Reviews and testimonials make all the difference in the rental market. Getting a great feedback from your renters builds confidence in what’s being offered. Build excellent relationships with all renters and ask them for a review when they are finished with their stay. Be sure to respond to the reviews politely, regardless of whether they are positive or negative.
Tip #5: Make sure your property is adequately covered by insurance – It’s very important that your rental home should be protected from the financial consequences of an accident. It should be adequately covered by rental insurance or homeowner’s insurance. There are many insurance companies in the UK that offer coverage for holiday homes abroad. This is something you should have a look at.
Tip #6: Presentation makes all the difference – Presentation of the property is the key. Make sure your property stands out using high quality pictures taken by a professional photographer. Your property should look special, so make sure the video shoots or photographs of the property are of HD quality. Take a picture of the bedrooms, garden, kitchen and the living room in a way that the home looks cosy and appealing.
Tip #7: Prepare for unforeseen circumstances – Often, when you rent out a holiday home to tourists, there are so many things happening that you cannot control, such as damage to the property from a heavy overnight rain, a leaking pipe, etc. You should be prepared for such occurrences and make arrangements so that action can be taken immediately. You should always have a local plumber, electrician and building contractor on the call.
Spanish Property Market Insight
Finally, a stable government is in place in Spain, with a new Prime Minister firmly in the saddle. So things look good for Spain yet again, which is good news for you if you’re looking to buy or sell property in Spain online.
Real estate construction is back in full swing in Spain, 8 years after the property market crash. Investments are flowing in after many years of inactivity and there is a real estate boom in the cities of Madrid, Barcelona and Valencia.
There is a huge demand for homes and apartments from the middle classes in all cities in Spain, including in the industrially powerful regions such as the Basque Country. All of the uncertainty of the past 9 months, during which there wasn’t a government in place in the country, have melted away.
In fact, property investment accounted for about 35 percent of the €22 billion foreign investment that has come into the country despite the pandemic. This is great news indeed. Already, the real estate activity is 80 times higher than it was in which is an amazing development.
The market has been encouraged by the increasing presence of overseas investors. In fact, foreign investors completely dominate the real estate sector in Spain. Local investors and real estate developers play second fiddle to them.
The 2008 financial crisis was a brutal one for many homeowners in Spain, and nobody has forgotten it as yet. It knocked off 40 percent off the home prices.
But since then, the market has staged a smart recovery and we are not far off from the peak 2007 home prices. Spain has been helped by strong economic recovery and growth in employment generation. This has created a strong demand for newly built housing.
Madrid, the capital of Spain, has been the most impressive performer, ranking fourth in the list of the top European cities from the point of view of real estate developers and investors, compiled by PwC.
Madrid also ranks 9th in a global survey conducted by EY of the best cities for property investment.
CBRE, a top property consultant, expects a demand for at least 180,000 new units a year over the next 10 years in Madrid. Despite being a world class city, Madrid is surprisingly affordable compared to London and Paris.
As of now, the average price of luxury real estate in Madrid is €10,000 per square metre, which is actually much lower than that in London and Paris. Wealthy Latin Americans are the biggest buyers of Madrid property. For them, Madrid represents a secure investment, and they feel that there’s no risk of losing their money.
Certainly, Britain’s decision to leave the European Union through the Brexit referendum wasn’t a positive decision for the second-home market in Spain, where Britons are the biggest buyers.
But the impact hasn’t been as high as it was earlier feared to be. Britons continue to be big buyers of Spanish property, especially in Costa del Sol, Andalusia and the Canary Islands. This should be positive news for you if you have a property for sale in Spain.
Selling Property Greece Trends
The buying and selling property trends in Greece this year are expected to be a lot better than they have been over the past few years. Greece is still a prominent overseas property destination, despite the havoc caused by the recent economic crisis in the country.
The damage caused by the economic crisis in Greece is so great that according to a study by PricewaterhouseCoopers (PwC), it would take till 2050 till home prices in Greece get back to the levels they were at in 2008.
The property market in Greece is beset by a number of problems. For one, the economic crisis in Athens continues. The government has gone on a taxation spree and the property taxes are exorbitant. There is not much financing available for prospective home buyers, many of whom have withdrawn from the market.
There is an oversupply of homes in the market, because of the number of bank repossessed properties. The glut of homes available in the market is so high that it would take nearly 30 years before the balance between demand and supply is restored.
These are some of the factors that led PwC to project that home prices in Greece would return to the level of 2002-2008 only by 2050. Even for this to happen, the Greek economy should grow at 0.6 percent, at least.
To summarize, the biggest problem in the real estate market in Greece is that there is an enormous stock of unsold properties that are on the market. There’s an issue with high taxes and with not much mortgage lending available.
Indeed, real estate taxes have jumped by six times since 2010. Property tax in Greece accounts for 4 percent of all taxes. This was never so high before. The overall tax rate in the country has increased from 26 percent to 34 percent from 2008 to 2022, and during this period, home prices have fallen by 41 percent at an average.
However, there are two ways of looking at it, and things may not be as desperate as they look at first glance. While the situation in Athens is too horrible to contemplate, life in the Greek islands of Rhodes, Mykonos, Crete, Samos, etc., goes on just as before.
It is as though there wasn’t ever a crisis in the Greek islands. Greece received over 25 million foreign tourists in 2021, and over 22 million in 2022, which is as high as it gets.
Most of the tourists visit the Greek islands of Mykonos, Rhodes, Corfu, Crete and more. Business is thriving, there’s a party atmosphere here, and everyone just wants to have a good time.
There is still a huge demand for homes in the Greek Islands. Any real estate in Mykonos, for example, continues to be highly sought after. It also helps that a typical beachfront mansion that was priced at $25 million in 2008 is today available for $5 million.
So a number of cash rich, wealthy investors from emerging countries such as Russia and China, as well as from the Middle East, are looking to buy properties in the Greek islands. Interest from Britain, Germany, Sweden and Norway remains high as well. So the party goes on in Greece, or at least in the Greek Islands.
If you need to buy or sell property in Greece fast contact us today.
Selling Property France Trends
The buying and selling property trends in France are expected to be very positive. The real estate market in France continues to grow in strength and is not far from the highs last witnessed in 2007. France remains a popular overseas property destination.
France benefits from the twin advantages of low mortgage prices and a stable property market. Property prices have been steady for a while now, which has certainly restored confidence of both buyers and sellers, according to the Institut National De La Statistique Et Des Études Économiques (INSEE). Buyers now feel confident about making bigger bids now, than they were only a few years ago.
Resale property transactions have hit a new high in 2016, and are estimated to be 830,000, up by 19 percent over the previous year. This has certainly been aided by the interest free loan which is given by the banks to properties that are in need of renovation. The goal is to encourage property transactions in all regions of France, and not just in the popular areas such as Paris and the South of France.
There is however some concern over the mounting real estate prices. There is a fear that higher property prices could turn away some of the prospective buyers and even lead to a bit of a slowdown. But at the moment, there is no fear of a slowdown.
Real estate agents across France have reported an increasing number of inquiries for homes and apartments in France from a number of emerging nations such as Russia, China, Ukraine, Brazil and from the Middle East.
They have also reported that the interest from Britons, who are the biggest buyers of French properties, continues to be high, despite the Brexit referendum. Americans, Germans, Italians and Scandinavians are the other big buyers of French properties.
The interest is expected to remain high as the French government plans to keep the mortgage rates low for the foreseeable future. However, there are a few factors that have impeded growth, such as the introduction of rent controls in some areas of France. This has led to many looking for rented accommodations than buying a home of their own.
Among the cities in France, Bordeaux has reported the highest price increase. It is more expensive than ever to buy a property in Bordeaux.
Here, property prices were up by 7.1 percent over the last 12 months, making it the fourth most expensive city in France after Paris, Nice and Lyon. The average price of an apartment in Bordeaux is €3,571 per square metre, which is slightly higher than the average in France, which is €3,292 per square metre.
But it’s not just Bordeaux that has witnessed such a jump in property prices. Home prices have risen in 80 percent of the towns and cities in France and they are expected to continue to rise as well. This is certainly good news for those who are planning to sell their property in France.
Contact the experts today to sell property in France fast.
Selling Cyprus Property Trends
Have you considered buying property in Cyprus online? Do you want to sell your property in Cyprus fast? Regardless of your motivations, you will probably want to know about the buying and selling property trends in Cyprus.
First, let us understand why Cyprus has become such as popular overseas property destination and why there are so many cash rich overseas buyers who are eager to invest here.
Cyprus caught the attention of cash rich overseas investors about a decade and a half ago, when it emerged that an increasing number of British expats were buying second homes or retirement homes there.
Today, an estimated 80,000 British expats live in Cyprus, attracted by its picture perfect climate, perfect beaches, beautiful natural surroundings, friendly locals and relaxed lifestyle.
Cyprus has also emerged as a top business and commercial centre. It boasts of some of the lowest taxation rates in the European Union. A number of small business owners or online business owners have moved to Cyprus since its ascension to the European Union in 2004, attracted by the island’s low rate of taxation.
Cyprus has emerged as an attractive alternative to Spain, which has become too crowded with tourists and has experienced the sort of over development that puts off those who want to have a quiet time when on a holiday.
Cyprus is also an alternative to France, which has an atrociously high rate of taxation. A number of British expats have realised that Cyprus is the ideal place to buy a holiday home, which offers a quiet and relaxed lifestyle, with lovely beaches and stunning natural scenery, while having all the modern amenities that one expects to get from a modern European nation.
Indeed, many British expats who want to escape the tax burden back home in the UK, not to mention the horrible climate, find Cyprus to be the ideal place to live, earn a decent living and set up a business. Cyprus is hence an excellent alternative to the jaded overseas property markets in the western Mediterranean.
The country boasts of two modern international airports in Paphos and Larnaca, which are well connected by flights to all major cities in Europe. The country has a world class motorway network. There are dozens of first rate golf courses in Cyprus, and thousands of luxury properties for sale.
The financial institutions in Cyprus were quite primitive as recently as in the 1990s, but have undergone a complete transformation since then. Cyprus has modern banks, which sustain the property market here with cheap mortgages and home loans. Now, although the banks here lost a lot of money during the global economic crisis of 2007-2008, they have largely recovered since then.
The government has done its bit to encourage investment from cash rich overseas buyers by offering schemes such as the Golden Visa, which promises residency permits and a right to travel across the Eurozone to non-EU investors who buy properties worth at least €250,000 here. That’s why there are a number of high net worth Chinese and Russian investors who have bought properties in Cyprus.
Contact us today to buy or sell property in Cyprus fast.
Selling Bulgaria Property Trends
This is a great time to be in Bulgaria – the national economy has taken off over the last few years, and a pro-business politician, Rumen Radev, has been President. The Bulgarian property market is on song as well.
The buying and selling property trends in Bulgaria look very positive indeed. It’s no surprise that there is a lot of interest in the country coming from cash rich overseas buyers, especially from Europe and Scandinavia.
Bulgaria is not a large country – it has a population of just 7.2 million. There are actually fewer people living in Bulgaria than in London. But it has a very diverse landscape, with a vast, unspoiled Black Sea Coast, large, gigantic mountains, idyllic villages, and busy, bustling cities.
The country has made a lot of progress since joining the European Union just about a decade back. There has been a massive improvement in the quality of life in Bulgaria since then. The rising income levels in the country are a testament to the number of business opportunities available in the country today.
The Bulgarian property market has kept pace with the fast-rising economy, which grew by 3% in 2016. There is a huge demand from high net-worth overseas buyers who are looking to buy properties in Bulgaria online, as fast as possible.
Bulgaria has largely been unaffected by external events such as Brexit and the economic crisis in neighboring Greece. Britain is one of Bulgaria’s main trading partners, and British buyers are among the most important buyers of properties here. But Brexit has not slowed down the real estate market in the country.
Other factors such as the refugee crisis haven’t had much of an effect either. Much of Europe is struggling with the high volume of migration from troubled parts of the world such as Syria, Iraq, and Afghanistan. Bulgaria serves as an entry point into Europe for many refugees. But the government has been careful enough not to make the refugee crisis Bulgaria’s problem.
So what are the prospects for the property market in Bulgaria? It is generally very good. There is, as usual, a high amount of interest from cash-rich overseas buyers from Russia and other Eastern European countries such as Ukraine, Moldova, and Latvia.
Russians are big buyers in Bulgaria, and have been so since the start of the 21st century, when Bulgaria opened up its property market for foreign investment. Russians are believed to have bought over 500,000 properties in Bulgaria over the years, including over 50,000 apartments in the popular beach resort of Sunny Beach, near the city of Burgas.
British and Irish buyers are the other big buyers of Bulgarian properties. Most foreign buyers prefer to buy beachside villas and apartments in resort towns such as Sunny Beach and Varna or ski chalets in the winter destinations such as Bansko, Pamporovo and Borovets.
There is also some demand for apartments in cities such as Sofia, the capital of Bulgaria, Burgas and Plovdiv.
It’s safe to say that the state of the Bulgarian real estate market is pretty good. Contact us today to buy or sell property in Bulgaria fast
Selling Property Egypt Trends
The buying and selling trends in Egypt are not as positive as some of the other overseas property markets discussed by us, but are getting better.
Generally, 800,000 British tourists visit Egypt every year, but last year only 330,000 have spent their vacation in Egypt. The reason for this was the terrorist attack, when a Russian passenger plane was brought down over the Sinai Peninsula by terrorists owing allegiance to the Islamic State, killing more than 244 people, most of them Russian tourists.
The tourists were flying back home after holidaying at Sharm el-Sheikh, the most popular tourist destination in North Africa. Sharm el-Sheikh is very important to the Egyptian economy, which is dependent on tourism.
Following the terrorist attack, Britain, Russia and many other countries banned flights to Sharm el-Sheikh and advised their citizens against visiting the place. Since then, Sharm el-Sheikh has suffered greatly and basically resembles a ghost town, with the many restaurants and hotels running half-empty, without foreign tourists.
Egypt’s ambassador to the UK Nasser Kamel was very critical of the stand taken by the government to continue this ban, despite the fact that almost all other countries have resumed flights to the Sinai Peninsula.
Ambassador Kamel spoke to BBC’s Radio 4 Today, where he said, “When the accident happened and the UK decided to suspend flights, we had an agreement with the British Government to implement a joint action programme, under the promise that if the programme is implemented fully in three or four months, flights will resume.”
“Egypt has done its share. We have implemented the programme, we have brought independent security firms to assess the situation. All EU countries have resumed flights to Egypt – including Germany, which does not take the security of its citizens lightly – and the only EU country which is not flying to Sharm el-Sheikh is the UK,” Mr. Kamel added.
What does this mean for you if you’re planning to sell your property in Egypt online as fast as possible? Well, it’s not all negative news. We expect the travel ban to Egypt to be lifted soon, and normalcy to return to the country.
Egypt remains a popular overseas property destination despite the fact that the last few years have been a very turbulent period for the country. The property market in Egypt has generally been insulated from the rest of the economy, and the demand for homes in Egypt from cash rich overseas buyers remains high.
There are a number of cash rich overseas investors from China, Russia and other emerging countries who continue to buy properties in Egypt. It is after all one of the most beautiful countries in the world with a picture perfect climate.
There are a number of wealthy Arabs who share a historical fascination with Egypt and buy beachfront villas here. Britons, Germans, French and other European buyers remain invested in Egypt as well. We expect the interest in Egyptian properties to only increase in 2017 and beyond as the country gets its act together.
Contact us today to buy or sell property in Egypt fast