Worst Places in Asia to Invest in Property

Remote investing sounds great. You have the experts in the field like Tom Wade or Rick Otton showing how it’s possible for you to buy property anywhere in the world wherever you’re at. Maybe, you’re seriously thinking about investing remotely yourself and benefit from cash flow overseas.

However, being able to buy property abroad is half the story. The plan on how to make money from your remote investment shouldn’t be overlooked. And the reality is that location will always be a factor on whether or not you’ve made a good investment.

The factors that go into determining whether or not a certain location is a gold mine when it comes to property investments are varied. Maybe the countries economy isn’t doing too well, thus creating insane inflation or maybe the local Government just doesn’t make it easy for foreign investors to own property there.

These varied factors often conspire to turn, what should be a haven for property investors into a no-go zone for those who want to see returns on their investment. One such place in Asia is:

Manila, Philippines

If you have heard of the Philippines, then you will be surprised to see Manila at the top of the list. After all, a nation made of beautiful islands like the Philippines should be every property investors dream come true. Think of all the foreign and expatriate tenants you will be getting? But, as economic and marketing fate would have it, Manila, despite being located in one of the most visually spectacular Nations, is not a very lucrative place as far as property investment is concerned.

This is mostly blamed on the fact that the Philippines, as a Nation, has had some image issues with rampant corruption, disastrous monsoon and hurricane weather as well as minimal marketing on their part. All these factors have conspired to undervalue the property prices in this otherwise gorgeous Nation.

Hong Kong

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Hong Kong is booming, but uncertainties in government regulation make buying property here a little too risky.

This will come as a shock to many. After all, this autonomous territory in Southeast China has one of the most robust and vibrant economies. All things considered, this is an investor haven; it is well developed, there is a lot of money in the economy and the people have quite a bit of spending power. There is only one small problem.

When the British transferred this territory over to the Chinese in 1997, Beijing agreed to hold a separate legal system for the place for at least 50 years. Because of this complication, all property in Hong Kong is owned on until 2047 on a leasehold basis. Should everything remain constant, there will be no problems and the lease renewals would be as seamless as the Government promises. But history has taught us that Governments, especially powerful ones, are a whole different kind of fish when it comes to keeping their word. Who knows what will happen before then. For that reason, Hong Kong is an unstable property investment location.

North Korea

Of course this had to make the list. Actually, North Korea being a terrible place to invest in…anything really, comes as no surprise to many. In North Korea, the citizens have no property rights, and as it turns out, any kind of private industry is frowned upon by the Government. With all sorts of UN sanctions being placed on the Kim Jong-un ruled nation, investing in property here, even if you could, is a terrible idea for the exact same reason as it is in many dictator led nations, you just do not know what kind of decisions the Government will make in regards to your hard earned property.

Even though Hong Kong probably shouldn’t make this list, the unease with which the 50 year leasehold transition will take place is enough to make any investor skittish. So, if you are looking for property in Asia, these are some place that you might want to avoid or take extreme research measures before you invest.

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