Why should we invest in overseas real estate?

1. Investment and asset allocation requirements

For real estate investment, it is mainly divided into two kinds of logic. The first is to pursue the rise of the value of real estate itself and obtain investment income; The second logic is to obtain the income of annual cash flow in the form of real estate rental.

The first logic is fully applicable to our domestic market. The real estate value has risen rapidly in the past 20 years, but the current upward trend has slowed down a lot. There are also many cities in the world where house prices have risen greatly in the past decade. Many investors have earned a lot of price difference by buying real estate at a low level and selling real estate at a high level.

However, such investment is often accompanied by some problems, because each country has different policies and usually charges certain taxes, so we need to take all the holding costs into account when calculating the net income. For example, for the real estate in some parts of Canada, 50% of the difference value of the last sale needs to be paid as taxes when selling the real estate.

The second logic is to obtain stable cash flow through short-term or long-term rental of houses. At present, the rental income of real estate in China is between 1% and 2%, and the rate of return is at a low level in the world, that is, the rental sales ratio we often say is low.

In some areas with developed tourism or where famous schools gather, the rate of return on rent is often very high. For example, in some parts of the United States, the annual pre tax rate of return can reach more than 10%, while in some parts of Europe, the rate of return on shop rental can also reach more than 10%. At the same time, the rental rate of return will be adjusted accordingly with the development of regional economy. Due to the continuous recovery of European economy, the rate of return of European real estate has been rising steadily. If you can hold a property for more than ten years, its yield will become very considerable.

However, in areas with ultra-high rental yield, its house price will often maintain a stable level and will not increase rapidly with the rise of house price cycle, but it will not lead to the reduction of house price and rental yield with the emergence of financial crisis and other problems.

Therefore, when considering the investment target, we must make clear whether our investment logic is more inclined to the principal income brought by the rise of house prices or to stable cash flow recovery.

In fact, the investment of overseas real estate will involve many external factors. In addition to the investment logic of the real estate itself, we should also consider the exchange rate, currency circulation m2, and the politics of the investment target country. When you buy a country's real estate, it is equivalent to holding the country's currency, then its exchange rate, currency circulation and political factors will have a great impact on your investment income.

However, a huge advantage of investing in overseas real estate is to deal with the implementation of the current CRS policy. Overseas real estate is not included in the scope of taxation. It can also provide customers with a reasonable way to control taxes.

2. Security requirements

At present, the domestic living environment, whether air quality or food safety, is difficult to satisfy people on the whole.

But there is basically no need to have such concerns overseas. For example, Japan attracts a large number of tourists every year, and the high-quality natural environment is the main reason for attracting many tourists. In recent years, many investors will choose these countries for real estate investment, and even emigrate directly to the local life.

The unimaginable details of Japan, the crystal clear sea water of Thailand and the blue sky of Greece, which are common abroad, have become rare at home. There is no air pollution there. The mask can be put into the bottom of the box.

In addition, foreign countries attach great importance to food safety. Europe favors "green food". You can choose the food with "eco agricultural product label". If this label is attached, it means that the ingredients have been tested by the authorized certification authority and must comply with the provisions of EU laws and regulations. They are intensively cultivated or carefully raised. They have not used pesticides, chemical fertilizers and genetically modified substances, and the use of additives containing side effects is also strictly limited.

The food industry in the United States is huge, with an annual domestic food sales of more than 240 billion US dollars and an imported food volume of more than 15 billion US dollars. However, the food industry has an excellent record in safety and is considered to be the safest food supply in the world. Americans also have a high degree of confidence in food safety in their daily life. This sense of security comes from the highly efficient joint supervision system, complete laws and regulations, advanced testing methods, complete safety evaluation technology, hundreds of millions of dollars of scientific research investment every year, and of course, Americans' strong legal awareness.

The high-quality living environment and perfect food safety measures in Europe and America have also become the main reasons for a large number of overseas home buyers and immigrants.

3. Children's education

After solving the demand for life safety, we will naturally start to consider our next generation.

For children's education, the domestic education environment, education quality and education fairness often force a large number of people to choose to send their children overseas for more advanced western education.

Although it is everyone's freedom to choose which way of education, it has become the mainstream trend to expose children to different cultures. With their children receiving education abroad, overseas real estate has become a necessary choice for almost every parent. Some parents say that I can choose to rent a house when I send my children to study abroad, but every parent who chooses to rent a house regrets very much after their children graduate. Because in the living cost of studying abroad for many years, the rent cost accounts for a very large proportion. If you invest in real estate when your children go abroad, the income from house appreciation or house rental will offset the cost of studying abroad. You will find that the cost of studying abroad will be greatly reduced and even earn a lot of income.

This situation is often referred to as just needed house purchase for studying abroad. In fact, such house purchase can be combined with overseas investment. Turning studying abroad into a, not only does not cost money, but also may have investment income, which is what we call housing to support learning.

In addition to the above three mainstream needs, the needs for overseas real estate and overseas investment vary from person to person. Some people are out of a symbol of identity, some travel experts want to buy tourism real estate for themselves, and some people are preparing for their own pension, etc.

It seems to be a simple purchase of real estate, but overseas real estate and overseas investment are not just the purchase of a house. People's life has changed greatly because of each different demand and different operation mode.

Nowadays, the pace of development of the times is too fast, and each of us is stepping up to catch up. Globalization is the most important keyword of this rapid development. How will we catch up next?