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Rent or Buy Calculator

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  1. #1

    Join Date
    Dec 2002
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    薄扶林
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    47,963

    Rent or Buy Calculator

    Interesting calculator on NY Times.

    Has a lot of variables, which tell you if you're better of renting or buying, depending on a number of factor which can be tweaked.

    http://www.nytimes.com/interactive/2...smarter-living

    jrkob, Nep and greenmark like this.

  2. #2

    Join Date
    Jul 2016
    Posts
    6

    This is really a very good tool to use on doing the analysis. Right now HK still comes out as a buy. The biggest factor is of course interest rate outlook which can change the equation.


  3. #3

    Join Date
    Feb 2009
    Posts
    8,279

    The biggest factor for the core readers of this forum (expats, largely non-PR) is a whopping extra 15% stamp duty. This effectively rules out most expats from buying here. Renting is the only viable option.


  4. #4

    Join Date
    Jul 2016
    Posts
    6

    Yes, that obviously need to be factored in. And probably well worth waiting for PR, especially if only a few years to go. Actually most of my friends, are both expats AND PRs.

    But do bear in mind, if its some consolation, that if you do buy now and pay the stamp duty, prices should in theory jump by a similar amount to the extent the stamp duty is ever removed, if that makes sense. So waiting for it to be lowered may not necessarily be a good strategy.


  5. #5

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    I'm bullish on HK property so it is always a good time to buy if you intend to live in it.

    Problem is you can get a considerably nicer place when renting sometimes so buying might be a step down but gets you on the ladder.

    Even if the property values drop, given the large amount of your mortgage payment goes to principal plus the interest savings on your tax bill, you come out ahead.

    It isn't a short term play, especially in this market.

    RMMR likes this.

  6. #6

    Join Date
    Jul 2016
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    6
    Original Post Deleted
    These measure clearly did bring prices down. Obviously they did, and this was why the various "spicy measures were put into place". And yes, similarly, removing these measure would clearly be supportive of HK prices.

  7. #7

    Join Date
    Jul 2016
    Posts
    6

    With interest rates the way they were prices clearly would have gone up a lot more had the spicy measure not been introduced. Its really basic economics. Make it more expensive to buy (and make it more difficult to get bank loans and leverage), and prices will fall due to lower demand and affordability.

    The more interesting point, I think, is how much repressed value there is in HK property prices, and how much of that will be released when spicy measures are reduced. HK property is now extremely under-leveraged due to bank lending restrictions, so lets see. My back of the envelope discussion is that the various measures put into place brought prices down 30%-40% below what they otherwise would have been.


  8. #8

    Join Date
    Sep 2007
    Posts
    4,012

    Personally, I would just buy a calculator, you can pick up a decent casio scientific for $100 or so.


  9. #9

    Join Date
    Dec 2009
    Posts
    311

    I've never owned a home in HK, but am currently considering it. Can any homeowners give a rough ball park figure as a % of home value that they spend a year on ongoing costs? i.e. maintenance/renovation, management fees, taxes/rates, etc. I understand renovation doesn't happen yearly (perhaps amortize it over it's span of expected usefulness?) and that such costs will vary greatly with people. still, it'd be helpful to get a sampling. much appreciated.


  10. #10

    Join Date
    Dec 2009
    Posts
    311

    thanks!


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