Hard to make such smart moves when you have dumb things like kids schools to worry about.That's the sort of smart move many folks are making
Hard to make such smart moves when you have dumb things like kids schools to worry about.That's the sort of smart move many folks are making
True.
There are times in the life cycle when you may feel trapped.
And it is important to plan around those... if you can.
Hence, we bought our replacement flat two years ago,
when we could more easily afford it.
AND: The two outside-HK flats were priced so cheap, that the Full Cost is like just the Downpayment in HK: HKD $1.3mn, and under HKD $1.0mn
There are now some interesting opportunities in the USA, where you can
invest just US$130,000, and earn enough to rent a HKD$4-5mn flat here.
These moves are not without risk, but they can help you gain flexibility,
when your life situation offers little
Last edited by OffThePeak; 04-02-2015 at 06:01 PM.
Last edited by OffThePeak; 04-02-2015 at 07:47 PM.
Two years ago, we saw more upside in the market, and so bought first, before selling, and now have gains close to $800k - $1,000m on each flat.
(But I am LESS sure now about further rises.)
BTW, I wrote about the Downsizing strategy on "another forum", while we were doing it. But my posts were mostly ignored or rubbished. I cannot recall a single person saying: "Hmm. That might be a smart move." (I am used to thinking independently, so this reaction neither bothers me, nor stops me. I am simply noting it, since I think there's a good chance this still good suggestion will be ignored once again.)
Do Search on:
"DOWNSIZERS THREAD - Cash Out & still In the Market"
Excerpt: (Two Years ago)
"Cyclically, I think the market could have another 2-3 years, and maybe more. And we haven't yet seen the "crazy blow-up phase" which normally marks a long cycle high. That's why I suggest still owning something."
Downsizing to a smaller and/or cheaper flat locks in a profit, which also delivering a transaction which may reduce your mortgage, or eliminate it, while also fixing your rent. Best of all, would be leaving HK for a much cheaper cost of living in another country. Even Singapore might be significantly cheaper at current SGD fx rates.
Last edited by OffThePeak; 04-02-2015 at 08:01 PM.
It is a Condomium flat, which foreign buyers can own in the Philippines.
Same thing in Thailand.
I never owned land in HK either
You have to be careful in the Philippines as it is a bit 'wild west'. I have two properties, the first has been an excellent investment the second a disaster due to fraud and corruption. The first was carried out privately, the second through a well known property developer.