Investment Property in Zhengzhou

Investment Real Estate in Zhengzhou

Investment Property in Zhengzhou
Investment Property in Zhengzhou

Zhengzhou property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Zhengzhou.

Search Map of Zhengzhou Investment Real Estate

Zhengzhou (; simplified Chinese: 郑州; traditional Chinese: 鄭州; pinyin: Zhèngzhōu), also spelt Zheng Zhou and alternatively romanized as Chengchow, is the capital and largest city of Henan Province in the central part of the People’s Republic of China. Located in north-central Henan, it is one of the National Central Cities in China, the centre of Central Plains area, and serves as the political, economic, technological, and educational center of the province. The Zhengzhou metropolitan area (including Zhengzhou and Kaifeng) is the core area of the Central Plains Economic Zone.

The city lies on the southern bank of the Yellow River. Zhengzhou is a major hub of China’s national transportation network, with railways connecting Zhengzhou to Europe and an international airport. Zhengzhou is a National Civilized City [zh] and a State-list Famous Historical and Culture City. As of 2020, there are two World Cultural Heritage Sites in Zhengzhou. The Zhengzhou Commodity Exchange (ZCE) is China’s first futures exchange. Zhengzhou Airport Economy Zone is China’s first Airport Economy Zone.

As of the 2020 Chinese census, the prefecture-level city of Zhengzhou had a population of 12,600,574 inhabitants, whom 10,260,667 lived in its built-up (or metro) area made of 6 urban districts plus Zhongmu county, Xinzheng and Xingyang cities now largely being conurbated. The city had a total GDP of 1.014 trillion (RMB) in 2018. Greater Zhengzhou was named as one of the 13 emerging mega-cities in China in a July 2012 report by the Economist Intelligence Unit, and officially named as the eighth National Central City in 2017 by the central government in Beijing.

Zhengzhou is a major city for scientific research, appearing among the world’s top 100 cities as tracked by the Nature Index. The city is home to several national key universities in China, notably Zhengzhou University, Henan University, Henan Agricultural University, Henan University of Chinese Medicine, and Henan University of Technology.

Get Our Latest List of Investment Property in Zhengzhou

The financial stability of Zhengzhou has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Zhengzhou

 

Renting out your Zhengzhou buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Zhengzhouare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Zhengzhou and be prepared to change your initial outlook.
  • Thoroughly research the Zhengzhou location with a special emphasis on fringe areas outside the main Zhengzhou metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Zhengzhou.
  • Ensure that your target investment property in Zhengzhou appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Zhengzhou

Flipping property in Zhengzhou

 

Flipping property is when we advise clients to buy a Zhengzhou property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Zhengzhou market has a time to react to the renovation.

 

The Flipping Strategy in Zhengzhou

 

Investment property flipping in Zhengzhou is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Zhengzhou real estate investments are sometimes referred to by professionals as ‘distressed’ Zhengzhou real estate.

 

What is distressed Zhengzhou property:

 

  • Zhengzhou property in need of renovation
  • Zhengzhou real estate with a change of puropose and use
  • Oversold Zhengzhou property
  • Bank repossessions in Zhengzhou

 

Put simply, long term investors in Zhengzhou purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Zhengzhou investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Zhengzhou property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Zhengzhou use a minimum profit value of 22% when looking at potential Zhengzhou projects. The reason for this is because there are lots that can go wrong in Zhengzhou property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Property Secured Investments is a Private Equity fund that invests in Zhengzhou and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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