Start a Real Estate Agency in Hong Kong 

Real estate is a property consisting of land or buildings. Any permanent improvements attached to the land, whether human-made or natural, including trees, water, minerals, homes, buildings, fences, and drainages can be considered as real-estate. It also includes all the rights inherent in the ownership of the real estate.

Unlike personal property, real estate does not attached to lands such as boats, furniture, jewelry, vehicles, and farm equipment permanently.

• Mortgage-Backed Securities (MBS)
  This is another option for investing in real estate. They are not so popular, but they are still in existence. They carry a degree of risk, just like all investments. However, they may also offer portfolio diversification.
• Understanding Real Estate
  The terms real estate, land, and real property are often used interchangeably, but subtle differences can be identified. Land indicates the earth’s surface from the air space to the core of the earth. It includes minerals, trees, and water. On the other hand, real estate means the lands and all man-made additions, including buildings and houses.

Physical Characteristics of Real Estate

Three physical characteristics of land has differentiated it from other assets in the economy. These are:

• Immobility. This is about the geographical location of any parcel of land. It cannot be changed.
• Indestructibility. The land is desirable and indestructible. The structures on it may be destroyed or razed down, but the land will remain.
• Uniqueness. There are no two parcels of land that are the same; every parcel differs geographically.

Economic characteristics of real estate

The economic characteristics of land influence its value as an investment. Below are the characteristics:

• Location or area of preference. Location is one of the most important economic characteristics of the land. Location refers to people’s choices and tastes regarding a given area, based on convenience, reputation, and listing.
• Scarcity. The land is not considered rare; however, total supply is scarce.

Categories/Types of Real Estate

There are five main categories of real estate. These are residential, commercial, industrial, raw land, and special purpose/use.

• Residential
  Property that used for residential purposes. For examples: condos, duplexes, cooperatives, and single/multifamily residences.
• Commercial
  Property that used exclusively for business purposes such as apartment complexes, restaurants, offices, shopping centers, and parking facilities.
• Industrial
  These are properties use for development, manufacturing, distribution, and storage. Examples include warehouses, factories, and power plants.
• Raw land (or simply land) is vacant, undeveloped, and agricultural land, such as ranches, farms, and timberland.
• Special Purpose / Special use. This is a type of property that public use Examples include parks, government buildings, cemeteries, schools, and places of worship.

Guide to starting a real estate agency in Hong Kong

You can kick start your journey as a real estate agent by helping family, friends, and other clients in addition to representing yourself in your investment deals. There is a lot of legal stuff you must learn to become a real estate agent and be licensed.

However, there are various advantages to having a real estate license. You will have the access to real estate investment deals, networking opportunities, earning commissions, taking control of your deals, and educational opportunities that help one understand a different aspect of the business.

These are the different steps to follow:

1. First, become a real estate agent. There are different steps followed to be an agent:

• Research your state’s requirements
• Take a pre-licensing course.
• Take the licensing exam.
• Consider becoming a realtor.
• Apply to the Estate Agents Authority of Hong Kong together with the required documents and the necessary fee.

2. Ensure your company is incorporated as per the requirements outlined in the Companies Law and must have at least one company director who is himself a licensed estate agent. The steps are simple. Someone can enlist the assistance of company formation agents who help open a new company and afterward make all the necessary document submissions to obtain the license. He/she must ensure the following steps are completed:

• Obtaining an original land approved company name;
• Drawing up the company documents
• Registration with the Companies registry