Buying Property in Hong Kong
Foreigners can easily buy properties like condominiums in Hong Kong and even rent them out. There is no restriction over these. However, Hong Kong does not allow Albanians, Afghans, North Koreans, Cubans and Chinese from the Mainland to purchase freely. They are allowed only if they are permanent residents of some other country. Where land is concerned, St. John’s Cathedral is the only freehold property and all the other land belongs to the government.
Land tenure is available on a renewable leasehold basis. The land leases currently are being granted for a period of 50 years.
Once a buyer settles on a property, he /she appoints a solicitor who conducts land search of the property to ensure no claims remain on it. Once this is verified, the buyer’s solicitor registers the signed and stamped Agreement of Sale and Purchase at the private practitioner’s office. At this time the buyer has to make a down payment of 10% of the total property value. The process offers a 30-day window to the buyer to make the arrangements of the final payment and also to verify the title deeds of the said property. The next step involves the preparation and signing of the property assignment which is signed by both the buyer and the seller. This property assignment is prepared by the buyer’s attorney.
In the mean time the original Assignment of Sale and Purchase agreement is received, duly stamped and signed from the Stamp Office. The last step involves the stamped document of assignment to be presented to the land registry. This is done within 30 days from the date of assignment. The deed is considered legally transferred at this step, however, the registered office may take up to 3 months to input the document information in the database. The remainder of the payment is done at this stage.
Buying Property in Malaysia
Buying property in Malaysia is easier than in many other nations. Yet it is important for a foreigner to know of the fee structure, official process and documentation needed to complete the purchase.
The minimum value of the property that a non resident Malaysian can purchase is MYR 250,000. Property value less than this amount can be sold only to a native. Also, foreigners can purchase a maximum of two properties. In case they wish to purchase more than two, they have to get a special approval from the Foreign Investment Committee of the Economic Planning Unit at the Prime Minister’s Department. Also once purchased, a foreign buyer cannot sell the property within three years from the purchase date.
It is advised that when a property is selected for purchase, the buyer should get a structural survey done. This prevents any structure related problems from arising later. Once satisfied; a deal can be struck with the seller by signing a contract of purchase. This contract has a 3 month validity during which the buyer can verify all the documentation offered by the seller. Also, it is during this period that the proof of ability to pay or a payment plan has to be rolled out.
An important clause of the purchase contract is that the buyer has to make a minimum payment of 10% of the property value which is not refundable. Hence if the buyer backs out, he/she has to forfeit this amount. Also, in case the seller is not able to close the deal after the contract stage, he/she has to pay the buyer 10% of the property value for defunct sale.
If all goes smoothly, the process is closed with the signing of the sale and purchase agreement during which the remaining amount has to be paid. Henceforth, the purchase agreement is forwarded to the land registry with an application to get the title deeds transferred to the name of the new owner. The extra costs involve the stamp duty, lawyer’s fee, estate agent’s fee etc.
Buying Property in India
India is certainly not one of the easiest places to buy property mainly due to the tedious legal process that is involved. Moreover, you may also have to come into contact with a whole lot of inexperienced brokers and various other complications which may cost you valuable time and money. There are a lot of legal matters and paper work to deal with and it is strongly advised to rake in the assistance of a competent lawyer so that you are able to proceed with your purchase smoothly and systematically.
Before buying property in India, you need to understand the various processes attached with it. You will need to contact a realtor who will guide you to the various available properties that go in with your budget. Once that part is done, get the value of the property assessed and the various agreements and legal documentation drawn up so that you can proceed further.
One of the first steps that need to be taken is to inspect the detailed title deed of the property which should give the details of previous ownership over a period of thirty years. This title report should which is prepared by the seller’s lawyer should be thoroughly scrutinized by your lawyer for any discrepancies regarding ownership because an unclear title deed that has legal complications may even result in your eviction from the premises at a later date.
It is possible for you to buy a property which is under construction or a constructed property. If you are buying the former, you need to check up the title deed of the land under construction which will be in possession of the developer. You also need to be in possession of the allotment letter or agreement from the developer which should mandatorily contain various details regarding the price, payment and construction schedule, date of delivery, plan of construction, liabilities of the builders and other possession details.
If you are planning to purchase a constructed property, you need to affirm the seller’s right to transfer the property in your name as well as the various deeds regarding possession of the property. You will need to ascertain that the property is not rented out to anyone else and that it is not mortgaged. Make sure that you are given all the original documents and certificates regarding the property.
If you have purchased property from an area which is owned by the government, you need to ensure that you have permission from the government to do so and that the various paper works regarding the same are completed.
The purchase is completed only if you pay the stamp duty to the government. The value of the stamp duty differs from state to state and only when it is paid will the land be registered in the name of the buyer. It is the local area office which is responsible for stamping and registering the final sale deed upon which you will be the owner of the property.
Buying Property in Brunei
Brunei is a state on the north coast of Borneo in Southeast Asia with a coastline on the South China Sea. It is surrounded by Sarawak, a state in Malaysia. Until recently, foreigners could only lease property unless they got permission to buy from the Head of State, which was nearly impossible. New laws allow foreigners to own up to 1600 square meters of property. Many non-residents are now starting to buy, particularly townhouses and condominiums for use as retirement homes. Because of the low cost of living, Brunei is becoming quite popular with retirees.
Brunei wasn’t affected as adversely as the rest of the world in the recent housing crash. Property is still holding its value and is actually appreciating. Now the country is trying to get its economy moving, which is dependent largely upon gas and oil industries. As of now, few properties are privately owned so there is a good variety available.
You should be prepared to pay a lot of fees, including property transfer taxes and property taxes. A survey of the property is required, which can cost up to a third of its value. Buyers should always engage an attorney to help with negotiations and contracts, as the contracts don’t always adhere to international standards. The attorney can also help with the language barrier and prevent costly misunderstandings.
Growth areas include Bengkurong, Lumapas and Dadap, where improved infrastructure is ongoing. For instance, they are building a bridge to Lumapas so it will be only a short drive to Bandar and open the area to more economic development. Dadap is prone to floods right now but drainage is being constructed; thus, you could get land cheaper now and it will increase in value.
You may want to include areas close to commercial development in your search, as it will inevitably increase in value. When considering property in Brunei, be aware that most financial institutions don’t lend to foreigners. It is best to arrange for financing before you begin your search.
Buying Property in Indonesia
It may not be very easy for a foreigner to own freehold land in Indonesia due to the law of the country. But there are ways in which you can buy property in this beautiful country. But before going into that aspect, you need to understand the various certified deeds of property ownership as per Indonesian law.
The various deeds are the ‘Hak Milik’, Hak Guna Usaha’, ‘Hak Pakai’, and ‘Hak Guna Bangunan’, which specify the rights of people to hold property as per law. But out of these four deeds, only the ‘Hak Pakai’ can be of use to the foreigner who intends to invest in Indonesia. According to this deed, the property can be in the name of an Indonesian citizen or a foreigner domiciled in Indonesia and right of ownership is valid for 25 years after which it can be extended.
The ‘Hak Pakai’ title deed can be done up by a PPAT licensed notaries who will help you to handle the various legal formalities regarding the purchase of property at the Government Land Office. The foreigner who is in possession of property through the ‘Hak Pakai’ deed can also mortgage it with any lending institution or bank too. Any application for extending the period of ownership beyond 25 years should be made with the Government land office just prior to the date of expiry for a small renewal fee.
Many foreigners also choose to buy property through Indonesian representatives under whose name it will be brought. After this, the foreign investor enters into loan agreement with the Indonesian representative in which it will be stated that the land was brought with money loaned by the foreigner and so the investor is given full and irrevocable power of attorney to make use of the land to their discretion. The deal culminates with the permanent right of use agreement that is given to the foreign buyer to occupy the land.
Indonesian law does not require any deposits and all that is necessary is to transact the deal at the Notary’s office where the land is situated. The registration process of the land may take a time period of six weeks.
Buying Property in Malaysia
Malaysia is considered to provide a perfect investment climate especially in the real estate sector and people seem to be making use of the various avenues that have been made available by the government. A booming tourist destination and a hub of international business, Malaysia is playing home to a growing number of expats who are increasingly investing in this country.
Although buying property in Malaysia is much easier than in many other nations, it goes without saying that as a non-resident, you need to be aware of certain rules and regulations while buying property in the country as well obtain a basic knowledge about the various necessary documentation and fees that are to be remitted.
Foreigners are subject to certain rules with regard to purchasing property. The minimum value of the property in question should not be lesser than MYR 250,000. Moreover, foreigners are allowed ownership of a maximum of two properties only. Anything extra requires special sanction from the Foreign Investment Committee of the Economic Planning Unit at the Prime Minister’s Department.
Before committing on a property, it is always advised to get a structural survey done because many residential properties are known to have structural problems that often go unnoticed initially. After the buyer is satisfied with the property, he can make an ‘offer’ to the vendor and if it is accepted, it can be followed by the purchase contract that has to be signed by both the buyer and the seller. The purchaser has to deposit 10% of the value of the property and has to forfeit that amount if he backs out from the deal. The same applies to the vendor too who has to pay an equal amount to the purchaser if he is unable to go ahead with the deal.
This purchase contract has a validity of three months during which the purchaser has to source out funds and check up the relevancy of the various related documents. The final step is the signing of the sale and purchase agreement during which the remaining amount has to be paid and the agreement is forwarded to the land registry with an application to get the title deeds transferred to the name of the new owner.
Purchasers should be aware of the various fees related to purchasing a property in Malaysia like the estate agent’s fee, stamp duty, lawyer’s fee, etc. Another law concerning foreign buyers is that they cannot sell the property within three years from the date of purchase.
Buying Property in Thailand
Buying property in Thailand may not exactly the easiest thing in the world if you are a foreigner. Thai laws concerning ownership of property by non-residents are quite jingoistic in nature and involve a whole lot of procedures.
Considering the legal perspective, it is a fact that property in Thailand cannot be brought outright by a foreign national. There are two legal ways in which foreigners are allowed access to land or other property.
- Become the major shareholder of a limited company and buy the property in the name of the company.
- Avail of the 2×30 scheme where you sign an agreement with a domestic company or a Thai individual and lease out the property.
As a foreigner who is interested in buying property in Thailand, you need to understand that you cannot own more than 49% shares in a company. The rules in Thailand also deem it necessary to require a minimum of seven shareholders in a limited company. Therefore, the initial step towards buying a property in Thailand involves setting up a Thai limited company with six other Thai investors, following which you can get yourselves named as the executive director of the company through the procedure of voting. The final step towards securing your property comes when the six other investors sign an undated share transfer form transferring their shares to your name so that you become owner of the company. You can buy land or property in the name of the company.
But if the above mentioned way seems too cumbersome to you, or you are not able to source out 6 other Thai nationals who are willing to make a deal, you need to consider another option. Thai laws enable foreigners to lease out land for 30 years initially following which the lease can be further extended up to 30 years more. This option, though definitely much easier, involves more money in the form of taxes.
It is always a good idea to contact a reputed lawyer who can assist you with the several legal formalities involved in buying property in Thailand. This beautiful country in indeed a great place for investing your hard earned money and is sure to reap benefits if done properly.
Buying Property in China
China makes it very difficult to buy property, not because they don’t welcome foreigners but because of the constantly changing controls and regulations.
Foreigners that want to buy property in China must have a proper visa, not just a tourist visa. In most places you have to live in city on a residence permit (Z visa) for a year or more before the date of your purchase. You’ll have to submit a notarized work contract or permit or notarized proof of your status as a student.
Rules vary according to the city or the region. Foreigners can only own one residential property in Shanghai and Beijing and they have to actually live there. They must sign a letter of commitment that promises they won’t buy any other property. By contrast, buying property in Sanya or other location can be very confusing because their rules may be scarce. In fact, the regulations may be changed before you finalize your purchase!
These are good reasons why you should deal with an attorney as well as a real estate agent. Ideally, you can get a trusted Chinese friend to help you; real estate agents feel no obligation to advocate for you or help you get the best price.
Once you find a property you like you will make an offer. If the seller agrees you will both sign a sales contract and with that documentation you can begin to look for financing. The larger Chinese banks will help you and so will international banks like Standard Chartered. Once you secure financing, you and the seller will go to the district property center to transfer the name on the deed. At that point you own the property.
Once all papers are signed and delivered it’ll be 45-90 days before the process of buying is completed. Agents’ fees vary—in Shanghai they charge about 1% of the purchase price while those in Beijing charge 3%, the maximum allowed by law.
Buying Property in Taiwan
Purchasing property in Taiwan need not be a complex affair if you research on the various laws and rules concerning real estate in this country and rake in the services of a good lawyer who can guide you into a good purchase.
It is possible for foreigners to buy property in Taiwan provided that they use it for purposes amounting to personal use, investment, or social welfare, and the process too is similar to that of many other western countries. The only prerequisite for acquiring property in the case of foreigners is to get an approval for acquisition of property from the Ministry of Economic Affairs by registering with them. This approval could be a conditional one and is subject to the Taiwanese being allowed to invest in the home country of the foreign buyer.
As per the rules governing real estate in Taiwan, once the foreign buyer decides on the property which could be either in a direct manner by contacting the seller directly or through real estate agents who work for a commission, the buyer needs to register with the Land Registration Office of the particular area where the property is situated. It is the responsibility of this department to maintain details of the property in its area and to provide registration certificates which specifies the size of the property in question, its owner, the specification of the building if any, the date of transfer of the property and title of the lien.
The agreement for sale needs to be signed by both the buyer and the seller in the presence of the Notary. After due payment has been made and the various fees met with, the property can be registered in the name of the new owner.
Taiwanese land registration ensures a speedy procedure and the whole process can be completed within five days after which the property changes hands. It is also possible in Taiwan to avail of bank loans at very reasonable rates. The cost of the property deal apart from the value of the property includes various taxes like the deed tax, stamp duty, etc as well as fees like the registration fee, legal fee, notarization fee, and agent’s fee.