Attractive though the mainland property market may seem, buyers should be aware of the laws and regulations they need to adhere to
Hongkongers wishing to invest in property in the mainland should be aware of the numerous regulations required of them.
Chris Yeung, Savills Property Service Beijing's associate director, said Hong Kong investors needed to know about transferring money into and out of the mainland, tax implications and the value of a good property manager, among others, to get the most out of a purchase.
Mr Yeung says that funds coming into the mainland need to be registered in order to get any income out of the property into an overseas account to pay a mortgage, for instance.
'You have to first have a formal contract [with the developer] and then get registered with the [local] government. With the contract and the registered papers, you can then go to the foreign exchange bureau to apply for a certificate to change the money.
'You want to register the capital coming in with the Foreign Exchange Bureau because in future when you want to realise your gain and sell your unit, you have to use the same channel to send money out. You can't just put it in a suitcase and take it out.'
The first move after deciding to buy is to pay the deposit to hold the unit. The down payment for a Hong Kong buyer is usually 30 to 40per cent of the purchase price.
