Like Tree8Likes

Ting Rights - Buying / Selling

Closed Thread
Page 2 of 3 FirstFirst 1 2 3 LastLast
  1. #11

    Join Date
    Aug 2008
    Location
    猴山
    Posts
    23,652
    Quote Originally Posted by imparanoic:
    should be your decision, not your mother, unless you are not an adult
    Surely yes. You never know what your own housing needs will be in 10 years time. Succumbing to your mum's needs for a little bit of cash now may not be your next decision.

  2. #12

    Join Date
    Oct 2005
    Posts
    14,414

    $250k seems cheap considering it'll cost roughly $1-2m to build then you can sell the whole lot for $10m. Or bring in rental of $25k or so a month.

    jrkob likes this.

  3. #13

    Join Date
    Dec 2011
    Location
    Tsim Sha Tsui
    Posts
    3,963

    Yes, definitely get it valued to see how much it is worth. Contractors will 'bully' people into selling their rights cheaply and then proceed to make massive profits.


  4. #14

    Join Date
    Jan 2008
    Posts
    11,711

    The price of the ding rights depends on area and hope remote the place is

    Open Casket likes this.

  5. #15

    Join Date
    Dec 2008
    Location
    -
    Posts
    1,781

    I would definitely consider to build myself but you need a lot of patience and networking.

    Building permit requires 6/7 years to be granted. Building the the house 9-12 months. 6-12 months for inspection and approval by Lands Department. If you want to sell another 4-6 months for calculating the land premium. If everything goes fine it will take at least 8 years to build a house and sell.

    The financial picture:
    Ting right: free if you have your own or buy for 200k up.
    Land: 2 million and up for 1500-2000 sq ft assuming you want a garden with parking lot
    Build house: 1.5 million up
    Land premium: 1.2 million up
    Lawyers fees: tens of thousands
    Government fees: tens of thousand
    Bribery for village heads: a few hundred of thousands.

    Revenues: at least 10 million

    Profit: at least 5 million

    It's a nice profit but most people who are unfamiliar with building village houses don't know the enormous organization and effort put into the project. Having said that I would still give it a go

    You need a lot of cash to build a village house. No bank will lend you money for building the house and paying the land premium.

    Last edited by Drunken Master; 13-06-2015 at 03:53 PM.
    emx likes this.

  6. #16

    Join Date
    Dec 2008
    Location
    -
    Posts
    1,781

    Given that you need to bring in 5 million of your own savings to double your money in 8 years, the ROI is just 10% per year. And don't forget the amount of work you put into the project.

    emx likes this.

  7. #17

    Join Date
    Jul 2009
    Posts
    1,362
    Quote Originally Posted by Drunken Master:
    I would definitely consider to build myself but you need a lot of patience and networking.

    Building permit requires 6/7 years to be granted. Building the the house 9-12 months. 6-12 months for inspection and approval by Lands Department. If you want to sell another 4-6 months for calculating the land premium. If everything goes fine it will take at least 8 years to build a house and sell.

    The financial picture:
    Ting right: free if you have your own or buy for 200k up.
    Land: 2 million and up for 1500-2000 sq ft assuming you want a garden with parking lot
    Build house: 1.5 million up
    Land premium: 1.2 million up
    Lawyers fees: tens of thousands
    Government fees: tens of thousand
    Bribery for village heads: a few hundred of thousands.

    Revenues: at least 10 million

    Profit: at least 5 million

    It's a nice profit but most people who are unfamiliar with building village houses don't know the enormous organization and effort put into the project. Having said that I would still give it a go

    You need a lot of cash to build a village house. No bank will lend you money for building the house and paying the land premium.
    That's a worst case scenario.

    In 2003, my family bought a ding from an outsider.

    Total cost $2.5m including the land premium to the government. It was worth around $10m back then but nearer $14m now.

    From the moment we had to pay anything to when we could sell it anytime - around 2 years. You pay zilch waiting for the building permit.

    I did all the paperwork and wrote all the cheques.

    Anyone who sells a ding is getting ripped off unless they don't care because they are so poor they don't give a crap and a poxy $300k is enough to blind them to reason.
    Last edited by ray98; 13-06-2015 at 06:08 PM.
    East_coast, jimbo and Proplus like this.

  8. #18

    Join Date
    Dec 2008
    Location
    -
    Posts
    1,781
    Quote Originally Posted by ray98:
    That's a worst case scenario.

    In 2003, my family bought a ding from an outsider.

    Total cost $2.5m including the land premium to the government. It was worth around $10m back then but nearer $14m now.

    From the moment we had to pay anything to when we could sell it anytime - around 2 years. You pay zilch waiting for the building permit.

    I did all the paperwork and wrote all the cheques.

    Anyone who sells a ding is getting ripped off unless they don't care because they are so poor they don't give a crap and a poxy $300k is enough to blind them to reason.
    Someone who doesn't have land and ting has to fork out 2.5 million to buy both of them (2015 prices) before he could send in an application for building permit. You were lucky to have a plot of land or could buy back then for a low price. During Sars the price of a village house were it its lowest. In Yuen Long the cheapest 1/F was around 600k. Now the same costs at least 3 million.

    Btw if your village house was 10 million back then the current price should be at least 30 million.
    Last edited by Drunken Master; 13-06-2015 at 08:29 PM.

  9. #19

    Join Date
    Jul 2009
    Posts
    1,362
    Quote Originally Posted by Drunken Master:
    Someone who doesn't have land and ting has to fork out 2.5 million to buy both of them (2015 prices). You were lucky to have a plot of land or could buy back then for a low price. During Sars the price of a village house were it its lowest. In Yuen Long the cheapest 1/F was around 600k. Now the same costs at least 3 million.

    Btw if your village house was 10 million back then the current price should be at least 30 million.
    We didn't have to buy the land - I definitely didn't write out a check to buy land - I'll ask my mum tomorrow. The only thing good about the SARs was the land premium was low - around 680k if I remember right. The ding was $350k. The other fees a lot less than $100k (more like $70k) including yum cha money to agents and assistants.

    Also, the thing paid for itself after 7 years rent.

    The $10m offer was in Jan 2004, and if you think village houses rise as much as other property in HK, you are mistaken. When my relatives was completed in 2012, it was worth $14m.

  10. #20

    Join Date
    Dec 2008
    Location
    -
    Posts
    1,781
    Quote Originally Posted by ray98:
    The $10m offer was in Jan 2004, and if you think village houses rise as much as other property in HK, you are mistaken. When my relatives was completed in 2012, it was worth $14m.
    Since 2012 the prices of village houses have risen 40% (at least in Yuen Long area, I am not familiar with other areas). The past 3 months alone was good for 10% rise.

    Out of curiosity: what area is your village house?