Recently, suspected scam cases involving Hongkongers being deceived in overseas property investments have circulated on social media platforms. These incidents have even been handed over to local police for investigation. The company suspected of fraud is a real estate agency established by Hongkongers who immigrated abroad, drawing widespread attention from overseas property investors.
This real estate agency offers one-stop services for those intending to purchase or invest in properties, covering everything from property acquisition to leasing and rental management. The company has been operating locally for nearly seven years. However, many Hong Kong property owners have reported various issues after completing their transactions, including water leakage and severe structural safety problems. In one case, the property was found to have an invasive plant known as Japanese knotweed.
This plant grows rapidly and possesses strong penetrating power. It can grow through cement panels or brick joints, causing significant damage to buildings. Once a property is invaded by knotweed, its value will decline. Another case revealed another issue with the same real estate agency. Before the buyer completed the property purchase, the agency introduced a person claiming to be a qualified surveyor to conduct inspection and valuation. According to reports, the surveyor gave the property a high rating and described it as “nearly perfect.” However, when the buyer applied for a mortgage loan, it was discovered that the property had already been blacklisted by the bank and was ineligible for financing. Further investigation revealed issues with the surveyor’s professional qualifications.
From these cases, it is evident that real estate agencies play a very important role in overseas property investment. For the sake of communication, most of us tend to choose agents who speak the same language. This is a good practice as it avoids unnecessary misunderstandings during communication.
If investors want an extra layer of assurance, it is best to choose a real estate agency that has offices and teams both in Hong Kong and locally. These companies have invested significant resources into scaling their operations, value their business reputation, and maintain strict standards for sales practices and service quality, offering a level of protection for investors.
Choosing a reputable real estate agency
To protect the buyer’s interest and reduce the risk of large-scale repairs after purchase, it is a good idea to engage professional organizations for a thorough pre-purchase inspection, including plumbing, wiring, electrical boxes, and pest issues. Most real estate agencies maintain long-term partnerships with professional inspection companies and assist in following up on the inspection reports. If any repair is needed, the agency will coordinate with the seller to reach a repair agreement, such as requiring the seller to complete the work before the transaction, or the buyer accepting the issue in exchange for a lower selling price.
If purchasing overseas property for investment purposes, the best approach is to buy a tenanted property. Such properties are continuously occupied and regularly maintained, making them more likely to remain in good condition compared to vacant ones. Furthermore, properties sold with an existing lease offer stable rental income, which is beneficial to investors. Whether for self-use or investment, real estate agencies play a key role in overseas property transactions. Choosing a reputable and well-established agency is half the battle won.
Written by: Bonnie Wu, Founder of Capstone 72
Edited by: Yip Lai Man
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