Hong Kongers snap up UK homes and do what they excel at: being landlords

[snoop1130]

Hong Kongers snap up UK homes and do what they excel at: being landlords

By Clare Jim and William James

 

A person on a bicycle rides past houses on a street early in the morning in Islington, London, Britain, June 22, 2020. REUTERS/Simon Newman/File Photo

 

HONG KONG (Reuters) - Hong Kong residents are buying more houses and apartments to lease out for income in Britain, property agents say, a trend that coincides with what many expect to be a wave of emigration after China passed a national security law last year.

 

Hong Kongers became the fifth largest foreign investors in central London as of last August and have been driving up prices in some popular districts outside the UK capital.

 

But the new wave of buying also includes some Hong Kong residents who are pooling money to invest, a trend property agents expect to continue as more middle-class Hong Kong residents consider leaving for Britain and look to establish a source of revenue in advance.

 

"It's become much more of a trend in the past six months or so," Guy Bradshaw, head of London Residential at Sotheby's International Realty told Reuters. "I've certainly been involved in a lot more conversations and Zoom calls with people in Hong Kong and funds in Hong Kong."

 

The UK government is offering a new visa to Hong Kong holders of British National Overseas (BNO) passports that gives them a chance to become British citizens – a change it made after China's national security law for Hong Kong.

 

A steady rental income would be useful in applying for the citizenship, as the BNO holders need to prove they can provide financial support for themselves for at least six months.

 

London estimates that over 300,000 Hong Kong residents could emigrate over the next five years, and Bank of America expects Hong Kong residents moving to Britain could trigger capital outflows of $36 billion in 2021.

 

While Hong Kong residents have long been active buyers of homes in Britain, real estate agents say more recently there has been increasing interest in older apartments and houses as rental assets.

 

Hong Kongers have an affinity for real estate investment, with property prices in the Asian financial hub among the most expensive in the world.

 

Alan Wan, 38, who owns 13 residential properties in Britain, launched classes in Hong Kong two years ago – at the height of anti-government protests in Hong Kong – aimed at potential investors in properties in and around Manchester.

 

So far, his "UK Property Owner Association" class has attracted around 1,500 students. Enrolment spiked in the second half of last year after Beijing imposed the national security law.

 

One of Wan's students, 30-year old Isla Kwok, who moved to Manchester in late January waiting to start a degree, is using the rental income she receives from a terraced house bought in 2019 to finance the cost of renting a smaller flat and mortgage payments.

 

She plans to re-mortgage her first property to buy a second one this year after getting a residence permit, as mortgage interest rates will be much lower.

 

"Once you've started your first property, it's much easier to create more income to ease the financial pressure of living here," Kwok said.

 

Wan said most of his students bought their properties individually, but he also had some who pooled money to buy in London.

 

Marc von Grundherr, director at realtor Benham and Reeves in London, said he has seen the same trend.

 

"I've had a few clients come to us and say, 'Look, my son or my friend is wanting to invest in property because they're thinking about coming (to Britain), but they can't afford to do it on their own or they want to buy something slightly different - is it okay with two or three or four of them buying together?"

 

"That's a change. Obviously you always had larger investment companies who bought large amounts of stock, but we're talking not the very, very, very wealthy," von Grundherr said.

 

-- © Copyright Reuters 2021-02-25

 

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[Bluespunk]

39 minutes ago, snoop1130 said:

Obviously you always had larger investment companies who bought large amounts of stock, but we're talking not the very, very, very wealthy," von Grundherr said.

Is ''the very, very, very wealthy'' a technical term then...

[Morch]

Quote

Hong Kongers snap up UK homes and do what they excel at: being landlords

 

Never had one. HK landlord, that is. Do they really excel at it and if so, how?

[alex8912]

9 hours ago, Morch said:

 

Never had one. HK landlord, that is. Do they really excel at it and if so, how?

I know. I just read the whole article unfortunately and there is no reason or explanation why Hong Kong  people make good landlords. I don’t even think In Hong Kong people believe this. Kind of silly. 

[orchidfan]

Lived and rented in Hong Kong for 20 years.

First landlords (husband and wife) were Chinese (very wealthy category) and were stingy, mean pr***ks. Insisted on an autopay instruction with my bank for the rent even though I was a Civil servant).

I was paying $HKD 28,000 a month for 2 years and they wanted me to pay for a $25 door handle on the stove! (I didn't)

 

Moved  out of there when they wanted an exorbitant rent rise.

 

Next two landlords for the ensuing 18yrs were a Canadian and then a Brit.

Both excellent. Easy going, generous, replaced anything which had broken down....fridge, aircons, washing machines etc etc. Never a quibble...."Just get a new one and send me the bill."

 

So I certainly wouldn't class Honkie landlords as "doing it well" !!!

 

 

[PETERTHEEATER]

I think the description 'excel' is describing the rush to buy up the properties. People like these are the owners but employ local agents to manage the properties  on their behalf. They are absentee landlords.