"𝗔𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗶𝗻 𝗨𝗞 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆"… "𝗬𝗶𝗲𝗹𝗱𝘀 𝗨𝗽 𝘁𝗼 𝟭𝟮%"… "𝗟𝗼𝗻𝗴-𝗧𝗲𝗿𝗺 𝗔𝘀𝘀𝘂𝗿𝗲𝗱 𝗥𝗲𝘁𝘂𝗿𝗻𝘀."
These catchy phrases immediately caught my attention when I saw the British Chamber of Commerce Shanghai (BritCham Shanghai) event titled “Alternative Investment Series: Invest in UK Property.” Naturally, I attended, eager to question the panelists on these bold claims.
My skepticism was well-founded. As is often the case, when something sounds too good to be true, it usually is.
Eddy Tao, panelist from Berkeley Group Plc, mentioned that you might expect a 5-7% yield from investing in their development projects—no guarantees, of course.
Taxes were a hot topic at the event. A Chinese lady from the audience asked, “I’m buying an expensive property in London. How can I reduce stamp duty? I already have three properties there.”
The panel’s collective response? “You can’t.”
On the bright side, there’s a double taxation agreement between the UK and China, which may help you avoid paying taxes twice on your income.
Another topic that sparked intense discussion was inheritance tax—set at a hefty 40% in the UK.
Personally, I’m not a big fan of property investment.
There’s a widespread misconception that real estate appreciation is stable and inevitable. But look at Shanghai and Hong Kong—residential property prices are down 20-30% since COVID, and it’s uncertain they’ll ever return to their peak.
Moreover, investors often overlook hidden costs and risks, such as maintenance issues, tenant problems, and unexpected accidents. Realistically, yields are often lower than expected.
And when it comes to investment products, the picture isn't any rosier.
Brokers and fund managers profit from transactions, not from creating value for their clients. This creates an inherent conflict of interest.
As Mike Braun once told me, there’s no shortcut or easy win in investing. Ignore the herd mentality—market volatility is driven by emotions, not facts.
To achieve satisfactory returns, you must do your homework.
That’s precisely what I’m doing: learning to read financial statements and annual reports, and immersing myself in the writings of Warren Buffett, who generously shares his investment philosophy in his letters to shareholders.
What about you? What do you invest in?
Big thanks to the panelists James Macdonald from Savills, Nan Su from KPMG US, Robbie Chen from TEP, Eddy Tao from Berkeley Group Plc, Ian Bell from Bluestar AMG, Kassian Polin, CFA from The Bank of East Asia, Limited (BEA) and moderator Linmao LI.
#UKproperty #Investment
