Lol. And the wisest one said because u can get a Mortgage, at less than 2%pa, meaning that you can live in your place, and pay off some principle each month, for the amount you would otherwise be paying in rent!
Lol. And the wisest one said because u can get a Mortgage, at less than 2%pa, meaning that you can live in your place, and pay off some principle each month, for the amount you would otherwise be paying in rent!
comparing rent to mortgage payment at current levels is like comparing apples to oranges...
over 70% of my mortage payment goes to principal.
even if i break even every month on cash flow, capital is flowing in. focusing on that extra cash flow from rental yield is a small insignificant number... so small and insignificant like who cares??? (unless you're completely strapped).
probably every owner with a rental is aware of this, except you guys.
I would not touch "offshore" investing in Malaysia with a bargepole. You'll get ripped off good and proper.
And no, you do NOT need to watch the markets if you invest in stocks. IN fact that's probably the worst thing to do. Find a balanced portfolio of high quality stocks; invest and leave it or set up a monthly purchase plan. DON'T try to "time" the market and don't rush to sell the minute it turns down for a while.
I would say the arguement about paying off a mortgage versus rent holds some water. altho it definitely depends when you bought the property? I had to put in about 30 to 40% - but my mortgage repayment is extremely low compared to renting right now. ( I'd say about 1/3 of what people would pay to rent.... )
I'd be more interested in knowing the best time to sell? but since I dont have a plan to leave just yet I dont think I should do anything?
I paid about a million and a half, and it seems like the going rate is 2.5 to 3 million now.
absolutely crazy! we are talking in just 3 or 4 years!
before I bought I looked at the history of the purchase price of the house.. it's never dropped below 1.25 mil and changed hands for 2.8 at its peak!
finger's X'd the next big peak co-incides with me moving off and buying a farm somewhere much cheaper!
It doesn't really make sense to compare what one pays in rent now vs what your mortgage payment are since they were established at different times. It is relevant for you in terms of making a decision to sell or buy but not otherwise. As to the rent vs mortgage, it also depends on what you do with your money.
If you sold the apartment now and invested the cash(in some countries, you could all out buy a property for half the value of your current flat and directly pocket the rent for example), you could possibly make more than enough to cover your rent and put some in your pocket while diversifying.
That's the decision I made a few years ago when I sold off my property and it allows me not to have to work anymore. If my assets were all tied up in a property, I would have to hold a steady job.
However most people prefer to have a fairly passive investment that requires very little maintenance and is pretty well guaranteed to make you money in the long run. That's why buying a property and living in it does make sense for most people. The biggest problem in HK is that for many people, it means having all your eggs in the same basket.