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  1. #1

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    Property Information

    I am just browsing for information about the current property trends in HK as I am still far off to be a first time home buyer. I have been saving month to month for the initial down payment and I am close to that goal now. Recently, I have been visiting Gohomes.com to find out the current trends in certain estates and area. Also to browse what's on the market (although I know whatever is on that site picture and price wise won't be the same in the market) just to get a feel.

    Are there any similar sites that are in English and easy to navigate? Some of the other sites in HK are just mostly text base and are quite poorly written in English.

    Thanks


  2. #2

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    Here you can see recent actual transaction prices. Far more useful than advertised prices to see recent trends and you can search by buildings.

    Centadata - Home Page


  3. #3

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    If you plan to live in your house, now is probably not the best time to be buying.....keep in mind, houses bought in 1997 at the peak, were mostly in negative equity for almost 15 years...

    dear giant likes this.

  4. #4

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    If it's about living in your own home over a long period of time, it really doesn't matter when you buy. So there was negative equity for a number of years, patient people ended up making money and enjoying their homes. Prices will go up and prices will go down. If you have enough money for a decent downpayment then the risk that negative equity will have an impact is limited if you can wait it out.

    The flip side of playing a waiting game is that you don't have a place to call your own, you drop loads of money on rent and if prices keep going up, you get further away from the dream of owning often at a faster pace than you can save unless you're investing aggressively. The famous "bubble" that some keep talking about hasn't yet burst in a few years by the time it does, the fall could be right back where we are now or were a couple of years ago.


  5. #5

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    Quote Originally Posted by Swannie:
    Here you can see recent actual transaction prices. Far more useful than advertised prices to see recent trends and you can search by buildings.

    Centadata - Home Page
    I was going to post this one: http://hk.centamap.com/gc/home.aspx

  6. #6

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    If you are going to live there, then just ask yourself what makes more sense. If your mortgage is the same or less than your rent, then buying makes sense. If your mortgage is a lot more than your rent, then renting makes sense.

    That how I approach buying vs renting.


    Sent from my SGH-T989 using GeoClicks Mobile


  7. #7

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    Quote Originally Posted by Swannie:
    If it's about living in your own home over a long period of time, it really doesn't matter when you buy. So there was negative equity for a number of years, patient people ended up making money and enjoying their homes. Prices will go up and prices will go down. If you have enough money for a decent downpayment then the risk that negative equity will have an impact is limited if you can wait it out.

    The flip side of playing a waiting game is that you don't have a place to call your own, you drop loads of money on rent and if prices keep going up, you get further away from the dream of owning often at a faster pace than you can save unless you're investing aggressively. The famous "bubble" that some keep talking about hasn't yet burst in a few years by the time it does, the fall could be right back where we are now or were a couple of years ago.
    Did you really "make money" with millions of dollars tied up in a house earning no interest nor being able to use it for other investments during better economic periods? Clearly in real terms, after 15 years, you lost money.
    TheBrit likes this.

  8. #8

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    First, as I pointed out, owning your own home isn't only about making money. Second, interest in bank accounts have been nil or close to it for a long time. Third, other investments have been also hit very hard with stock market crashes in 2008 and a marked correction last summer. Fourth, even if you didn't "make money", if you break even and haven't paid rent for a number of years, you still come ahead and as a bonus, you have your own place.

    As an investment, I would say that one is taking a bigger risk by putting a lot of money in the same basket in HK but owning a home isn't just about making an investment for most people.


  9. #9

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    Quote Originally Posted by packy_crusher:
    Did you really "make money" with millions of dollars tied up in a house earning no interest nor being able to use it for other investments during better economic periods? Clearly in real terms, after 15 years, you lost money.
    Let us say you rent an apartment worth 3m. The rent is ~ 12,500.
    The landlord offers to sell it to you.
    You put up 1million
    You borrow 2 million @ ~ 2.5%. The monthly interest payment = ~ 400 HKD. The rest is capital reduction over the period of the mortgage.
    The 1 million might have gotten you 350 HKD per month.
    At the end of the 15 years, the rent is dead money, the apartment owner has an asset.

  10. #10

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    Firstly, an apartment worth 3 mio is unlikely to fetch 12500 rent. A 5% return is not the rule nowadays for residential property.

    Then your calculation is missing a digit. 2 mio at 2,5% is 4167 per month interest.
    As interest rates have nowhere to go but up, the only question is when. If interest doubles your interest payment will be around 8400 per month. Also property prices are likely to go down when/because interest rates go up.

    Last edited by hktraveller; 14-06-2012 at 08:24 AM.

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