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Are people really losing money on their properties?

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  1. #1

    Join Date
    Feb 2011
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    Are people really losing money on their properties?

    I am wondering if people are actually selling their homes and losing money?

    On the property websites that show the sales, it shows the prior transaction price and the most recent sale. For example, I looked at Discovery Park in Tsuen Wan, and a good number of people are selling houses at 1-2 million dollar losses and these homes are selling for just 3-4 million now, so 1-2 million is a big portion.

    However, perhaps people pay a premium when the complex is brand new as most people who lost money purchased in 1997/98 when the complex was built. Is it normal to assume that if you buy a new flat that you are paying a premium that should not be expected to be recovered in the future?


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  2. #2

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    They bought in 97 so yes many sell below what they paid.

    That said many bought post 97 and made a bundle so all in all...

    Your assumption is not OK, it's not that you pay a premium for new flat and you are expected to lose it, it's just when you buy and when you sell.

    I currently own a property in HK (sold the other one I - actually my wife - had several months ago and made $$ :-)). the property went on the market around 97/98, the guy who bought it, sold it in 2002/2003 for less than half the price, that must have been painful. The one who bought it early 2003 sold it for a nice amout back in 2007.

    97 => Peak of Property market, 2003 => SARS (bottom).

    It's more a timing issue than a old/new flat.


  3. #3

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    I think we need some input from Randy on this one!

    virago likes this.

  4. #4

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    Quote Originally Posted by Stoob:
    I think we need some input from Randy on this one!
    You really think so?





  5. #5

    Many properties are bought by small firms/individuals to be redeveloped, tarted up and resold at a profit, hopefully. They maybe have several on the go at once. For them, sometimes, cashflow is more important than profit on an individual transaction. So yes - they swallow the 'loss' but the money earned is put back into property bought at a lower price, so its just a 'paper' loss probably used to save tax or something.

    Last edited by zerocred; 13-03-2012 at 01:02 AM.

  6. #6

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    Maybe that, or bank wants money, owner decided to move overseas and needs the money, couple got divorced, grandma died and kids want to cash in on inheritance, what appears to be a (HKD) loss may not be one if property was bought with funds originating in another currency, etc

    These are just some of the reasons why a property may be sold at loss (in and out of HK).

    Not everyone owns property as investment. Some people just live in them


  7. #7

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    Divorce case, kidnapped children, someone died a horrible death in the place, front for money laundering from Triad member......


  8. #8

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    Owner in jail and needs money for cigarettes, Feng Shui master told owner to have sex with him 45 times and sell the flat to get a new one with more sun to get rid of some bad luck, etc

    dear giant and babediboopi like this.

  9. #9

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    Neighbors are not what they expected (ie. dealing drugs, abusive, PDLM lives next door etc), they got a great deal on another home close by, bed bugs have inundated the woodwork, repairs are too troublesome (someone else can replace that lightbulb)...

    dear giant likes this.

  10. #10

    Join Date
    Feb 2009
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    Most people selling their homes now are making money. Only the people who bought at the top of 1997, and the people who bought in the last 6 months, who are selling now, are the ones possibly making a loss. I would throw out a random number and say this is probably less than 1% of all property sales occuring at the moment. So 99% of people selling now are making money.

    Mat, Skyhook and shri like this.

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