Why Macau? Investing in Macau
As Special Administrative Region (S.A.R.) of China, Macau is one of the wealthiest and most prosperous cities in Asia, attracting tourists and investors from around the globe. But mostly, Macau is now famous as the gaming capital of the world.
The chances are that if you are reading this page, you already know many, if not all, of the benefits that investors in Macau property enjoy. For instance;
- Macau surpassed Las Vegas as the worlds largest gaming market in 2009
- Macau total land mass is a mere 30 sq km, and space is extremely limited
- Before reverting to Chinese rule 1999, Macau was the most densely populated territory on earth, and is now home to a growing population of over 600,000 by 2011
- Macau does not levy any Capital gains tax on Real Estate profits
- There are no restrictions on foreign ownership
- Banks will finance up to 50% - 90% of the purchase price for buyers
- Macau’s economy has been growing at an average rate of approx 10% per year over the past 10 years.
- There is a constant demand for affordable rental property
- The currency used for property transactions is the HK$, pegged to th US$
- The Macau law is based on Portuguese law, and will remain so until 2049
- Macau property prices are on average just 25% - 30% of Hong Kong prices
- A bridge connecting Hong Kong, Macau & Zhuhai is under construction, and is due for completion in 2015.
- When the bridge is complete, from HK Airport to Macau will be closer than HK Central.
- Foreign companies in the gaming and entertainment industries have invested US$7 Billion since 2002
There are many other advantages that Macau, especially if you are trying to work out how to invest in the explosive growth of China.
What Type Of Property?
Macau property is mostly high rise and low rise apartment blocks, with very few individual houses available.
Property prices start around HKD1,000,000.
In this market, finding good investment property is not easy. However, as property investors ourselves we know what to look for, and most importantly we know how to spot those opportunities when they come along.
Apart from the normal considerations of price, location etc, there are a number of factors in Macau that can make two seemingly identical investments create vastly different results.
96% of properties investigated are not suitable for investment
As a general rule, for every 100 properties investigated, 14 are interesting on paper, and 4 are potential investment properties because the property:
- has or will have a high rental yield compared to the market
- has an expectancy of high occupation / low vacancy
- is undervalued by 10% or more
- can be developed and will be worth significantly more after some renovation
- has significant Capital Growth potential
- is in a desirable location
Once a property is identified as a potential investment property, it is acquired at the lowest possible price for our clients.
We can’t tell you what’s going to happen property prices in the next 3 months, but the long-term outlook for the Macau property market is excellent.
Macau offers investors a way to benefit from the rise of China as an economic super-power, but without the purchasing restrictions, excessive taxes and legal complexity.
As property investors and landlords ourselves, we understand the needs of most investors who are looking for above average returns from the Macau property market.
What’s more, clients only pay a ‘success’ fee once a transaction is confirmed; please refer to the schedule of fees for full details. All JML clients are protected by a money back guarantee if not satisfied with the services provided to them.