WHY INVEST IN ASIA
Countries and regions falling into this category are: –
Syria, India, China, Japan, Vietnam, North Korea Thailand, Singapore and South Korea. For a full alphabetical list go to https://www.countries-ofthe-world.com/countries-of-asia.html
Armenia and Cyprus geographically are in Asia, but politically and culturally they are considered a part of Europe.
Typically, five Asian countries fall into the best locations for foreign investment. Business consultants, lenders and investors recommend in order 1) Malaysia, 2) Singapore, 3) Vietnam, 4) Indonesia and 5) India. Other countries falling behind are mainly due to their cost of land, labour costs, lack of transport infrastructure or political unrest.
Growing at around 7% per year with half of its already 1.25 billion people aged between 20 and 59 India is well known for its low wages and is the reason for attraction of foreign investment. Since the economic crisis in 1991 investors are keen on bio-manufacturing automotive production and telecoms with many government incentives being offered.
The world’s fourth largest country offers political stability which has no doubt helped its attraction for foreign investment. Policy reforms have removed a lot of red-tape to attract foreign businesses with the knowledge that labour costs are very low with a large population waiting to fill their job prospects. Mining, energy, plantations and financial services are the key sectors that foreign investors follow. Having more than 10,000 islands the production of minerals found continues to prosper and its manufactured goods are sold locally as its population is large enough to consume them avoiding any importation costs and boosting the economy.
Not the cheapest of options but prices are fair. Malaysia is one of the top recipients of foreign investment increasing by 64% in 2016. The government are pro-business and offer tax breaks on capital expenditure for research & development, exempt duties on high tech imports and a 10-year tax break (max 70%) for companies involved in technical training, manufacturing and tourism.
Offering a free-port approach to foreign investment, property isn’t cheap, however to uphold its anti-corruption policy it has rules on their rules which are implemented to the letter. Foreign investors however can avoid having to enter joint ventures.
The attention to the rule of law has rapidly gained the trust of foreign investors. Their economy is one of the fastest growing in Asia. Low land prices coupled with cheap labour costs it’s no wonder this country has seen continual growth after their currency glitch in 2011.
View our properties in Indonesia
View our properties in Thailand
Indonesia having just recently gained Rp. 165.9 trillion (US412.5 billion) in its first quarter. 24.4% of its 2017 target of Rp. 678.8 trillion. The Coordinating Board (BKPM) announced that investment from foreign investors has increased 13.2% compared to the same quarter last year. The middle class in Indonesia is growing fast making it a valuable target group for investors. Indonesia is already the 4th largest populated in the world and is growing rapidly. Based on statistics Indonesian’s population increases every year by roughly 3 million people. By 2020 Indonesia is expected to have a population of 272 million. 50% of Indonesians are under the age of 2 making this an excellent demographic dividend in the future.
Thailand has only recently via the government through its Board of Investment (BOI) welcomed foreign investment into the Thai economy. Its biggest investor to-date is Japan with various tax incentive schemes now being offered. Rental potential is on the increase due to government spending luring growing numbers of tourists. With incentives, such as no capital gains tax for private investors, and low ongoing taxes, foreigners are regarded as a big investment opportunity in Thailand. The laws are changing to accommodate the rapid world response to this area and make investing much more flexible.
Foreign investors cannot buy property in many Asian countries and unless you know the market it is an area you should avoid unless it’s an absolute necessity. Buying through a UK registered development/investment company is the safest route to market and an ideal chance to diverse your property portfolio.
What are some important & key points to know before investing abroad/ investing in property in Asia?
It is worth pointing out that regulations with regards to investing abroad differ considerably from country to country and the necessity to exchange currency could affect your purchase. If the foreign investment opportunity is being offered by a UK registered company, then you will still be protected by any applicable English Laws. You should however check that this is the case prior to any investment.
To invest in property in Asia you should have a good understanding of that country including their rules and regulations, more importantly their laws and tax implications. The risk potential abroad is hampered by the lack of most people’s knowledge and if you are considering buying Asian property you should seek professional help first. We would not recommend any company or service as we do not have expertise in this area.
How can Wise Investments help with someone’s Asian property investments?
We can provide you with opportunities that are property related and are offered by known UK registered businesses. We can arrange finance, currency exchange, provide due diligence and research the opportunity prior to investment. We can help with the application process and be a point of contact for reassurance. We can also provide you with opportunities ordinarily you would struggle to find yourself.
What are the risks of property investing in Asia and how can Wise Investment help reduce those risks?
There are many risks involved in property purchase. Location, purchase price, condition, repayment ability, restrictions attached and economic changes to name just a few. Wise Investment Properties only offer investments by known developers/investment companies. The full investment details are explained comprehensively and normally come with assurances of investment growth potential and known yield returns and any applicable terms. The risks have been minimised to attract investors to see it as a viable opportunity and encourage investors to return prior to the offering.
What are the different types of property investment in Asia?
Commercial and Residential property but realistically the property market is better placed in shared schemes such as hotels and commercial development offering greater levels of security targeting specific tourism or business activities with known demand or key areas for improvement.
What is the most popular property investment?
Tourism related property purchases.
Why would you invest in Asia rather than Europe or the USA as an example?
Cost as property is much cheaper and you get a lot more for your money in most places if purchase is permitted. However, it has a greater risk potential so this could also be a reason why you should invest, to enable you to spread your risk to get a better return ratio.