Dubious claims, lack of due diligence all too common in Hong Kong’s overseas property market, buyers and insiders say
- One homebuyer says she was duped by an agent who said her property in Leeds, England would pay for itself in three years with rental income
- Property surveyor in Britain says many homes Hongkongers are investing in are not in good condition, or come with hidden issues
To this day, Lee still rues the HK$1 million (US$128,600) she invested in a new residential property in the United Kingdom in 2014.
An overseas property neophyte at the time, Lee, who manages a consultancy and declined to give her full name, said she fell victim to the unprofessional tactics of an agent in Hong Kong while negotiating the purchase of the 300 sq ft home in Leeds.
She said the agent claimed the £80,000 investment (US$11,000) would pay for itself in just three years if it was rented out to students – a carefree proposition, they maintained, given a management agency would handle everything for her.
The agent, however, failed to warn her that properties’ management agencies changed often and easily, and their appointment was beyond investors’ control.
The firm taking care of Lee’s property was subsequently replaced three times over the years, resulting in higher fees and more expenses when it came to making repairs.
