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Copy of my Mingwei Newsletter

Two Zhuhai properties available for purchase
9 Jan 08

Dear Steve,

Here are details of two apartments available to buy, as a UK investor, immediately.

Property A

The lates property we have identified is as follows (money amouts in RMB):

  • location: Gong Bei, Dragon City development
  • Price: 268K
  • Tax: 3K (only)
  • size: 35sqm
  • yield: 5.4%
  • rent: 1200
  • notes: it's been converted to a one bed from a studio, new-look looks good, but the kitchen is quite small.
This property has a sitting tenant paying the noted rent. This property is in a good state of repair and decoration and no significant maintenance costs are anticipated for the next few years.

Property B

There is a further apartment in the same block with the with the following details:

  • 8th floor.
  • appox. 33sqm, slightly smaller than the one below.
  • price 210k NET non-negotiable, 
  • other main cost: tax,including seller's tax: appox 17k.
  • agent fee 2%, and time MWH spends to deal with purchasing and decor. appox RMB1000,
  • TOTAL should be about: 280k. (total property price after decor and including tax: max:275K)
  • rent best guess 1300/pcm
  • Yield best guess: 5.6%

This property will need to be refurbished to make it lettable: another RMB10 to 15k for furniture, ACs and other electronics including kitchen and bathroom appliances,  appox. RMB30 to 35K for  for decoration, this includes: breaking down a few walls, changing all floors, completely new kitchen and bathroom, fitting anti-theft nets, re-painting walls.. and labour costs etc. Costs are estimates and not based on any firm quotes! We are of course happy to arrange this work to be done for you.

Please contact me if you are interested in purchasing either of these properties. I can arrange for the property to be registered in your name if you are set up to own property in China. If you don't already have a Chinese name and Power of Attorney set up I can hold the property in trust for you under English Law.

The property market in Zhuhai and Guangdong generally has definitely softened. Guangzhou has been especially hard hit. My strategy is to identify good bargains in Zhuhai and continue to gain first-hand experience of the local market, buying in small quantities when I discover an outstanding proposition, while working on the bigger plan of creating a collective investment vehicle.

If you know of any UK source of funding for China residential property investment the please contact me. Previous emails have sent specific details but these go out of date very rapidly. We suggest that you contact us by telephone if you would like to receive information about what is available.

I will be travelling back to China on Sunday. Please call 0845 299 0113 to speak to Esty who will be happy to take calls and give more details about these opportunities in UK working hours.
 
Yours Sincerely,
Steve Hemingway
Mingwei Property Investment

Posted on January 10, 2008 8:06 AM |

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