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seems like hk property price has come down a bit

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  1. #21

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    Quote Originally Posted by gilleshk:
    Generally though if you play the odds, don't overextend yourself and show patience, you'll end up a winner with either real estate or stocks.
    Yes - I guess that sums it up. In the last 3 years I guess I'm up about 15% on equities (including dividends) and 50% on HK property. (More than that, obviously, in 2 years.)

    Shame I'm down a huge amount on marriage and, as a result, Philippines property. As an investment I think we can safely say that marriage is to be avoided at all costs.
    Last edited by PDLM; 17-08-2010 at 02:21 PM.

  2. #22

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    It depends who you marry... I bet Elin Nordegren(Woods) figured that marriage was an outstanding investment. Your wife might feel the same...

    Last edited by gilleshk; 17-08-2010 at 02:25 PM.

  3. #23

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    Quote Originally Posted by bdw:
    [SNIP]
    But as a roof over your head, I think buying HK property should be seriously considered. It is a way to escape paying rent in one of the most expensive cities in the world. So many expats come here and complain about rent prices in HK. There is a way out, BUY. As long as your property holds its value then when/if you leave the country you can 'cash out' and get all your money back. As Gilles said above, its like a 'forced savings plan'. The interest and other incidental expenses such as management fees, government rent, etc are something like 5-10 times less than paying rent.

    Even if you buy a property and it loses something like 3% a year in value, you are still better off overall buying rather than renting. At least, that was my rough calculation at the time.

    [SNIP]
    Then your calculations are almost certainly wrong.

  4. #24

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    Quote Originally Posted by beachball:
    Then your calculations are almost certainly wrong.
    Well you could have told me that before I bought my property!!

    Seriously, there are so many elements to consider and variables in the calculation that I dont really want to get into here and is not really the focus of the point I was trying to make. But I do roughly stand by these numbers and they did apply to me when I was looking at renting $23k vs buying for $6m.

  5. #25

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    Quote Originally Posted by bdw:
    Well you could have told me that before I bought my property!!

    Seriously, there are so many elements to consider and variables in the calculation that I dont really want to get into here and is not really the focus of the point I was trying to make. But I do roughly stand by these numbers and they did apply to me when I was looking at renting $23k vs buying for $6m.
    You should have bought for 6.5 Mio and in cash,that way you would have got the ID straight away...winning all the way.

  6. #26

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    I'd say a 6m property would on average rent for slightly less than 23k. Anyhow, if you have a 20 year 70% mortgage at 2.5%, that's about 23K/month not including rates and management which are probably close to 1K. That would mean you roughly put in 2m for downpayment+costs.

    By investing roughly that amount into stocks, I would on average be pretty close to covering the 23K in rent so in my case, it's very unlikely that I would be ahead unless the property had a significant gain.


  7. #27

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    20 year 70% mortgage at 2.5%........yes but the 2.5% can become 3% or 4% or 0.5 %....or 10%....the joy of a variable rate....ah HK....