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Investment advice HK and abroad

  1. #131

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    @nivantj, thanks for posting this. So it seems for a property with a size of say 1000sf, the RVD seens a net yield of around 2.4% roughly, if I read the chart correctly ? The calculations I have show the same context, a tad lower (2.1%). By any chance would you have a link to this chart ? Perhaps they will list what this includes exactly.
    @shri, you mentioned, here or elsewhere I am lazy to check, that in your building you have a renovation of the lift and you're on the hook for $140k is this what you said ? Do you know potentially what could be the cost per unit for renovating the exterior of a building ? I remember a few years ago a few towers at Gold Coast were renovated in this manner, I wonder the potential cost.

    I'm not sure if the above chart do take this into consideration these one offs renovations (my calculations do not), they could easily eat up a year in rental apparently. At least where I live it seems.


  2. #132

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    @jrkob - lift renovations about 33K for our unit (varies by size / parking lot ownership).

    The breakdown for this is about 33K for 50 units and 28K for 50 units - about 3-3.2M per building (2 lifts per building).

    We also have car park renovations being voted on - last meeting failed to meet quorum (long story) so lets see how that goes. Budgeted 100-110K for that based on tender info.

    Average rentals for our unit range from 55-60K/month

    This is the first time in 15 years we've had a bill this large. I recall about 7-8 years ago we shelled out $30K for external piping upgrades or something like that.

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  3. #133

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    It seems they do not disclose calculations method but im guessing it should not include any renovation cost as new buildings go without renovation for decades..

    https://data.28hse.com/en/


  4. #134

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    Thanks got it, so 140k is for these 2 items. Do you have a rough sense of what could potentially be the cost of renovating the exterior of a residential building ?
    (Perhaps I could ask my contractor/renovator).


  5. #135

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    Quote Originally Posted by jrkob
    Thanks got it, so 140k is for these 2 items. Do you have a rough sense of what could potentially be the cost of renovating the exterior of a residential building ?
    (Perhaps I could ask my contractor/renovator).
    Remind me sometime over the next few days. I'm sure I have some emails about t

    We've got a few blocks in another part of our estate going through a full external facelift - year long project which involves ripping the external surface (everything removed - including aircons etc). Seems like a f'ing nightmare to live there.

    I recall it 220-250K amount being mentioned - have to double check.

    Also, periodic slope maintenance, playground upgrades, swimming pool renovations... keep in mind our estate is 40-50 years old depending on the phase.
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  6. #136

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    That totally depends on size/age of the building, previous renovations, what kind of work included in exterior renovation (i.e. structural pipes/ common corridor wiring/ lobby refurbish etc.).. My friend paid 80-90k 3 yrs ago for all of the above in a 55 yr old building with 180 flats..

    Edit: looking at Shri's message, it also depends on location/surroundings/facilities of the building.. Building sharing common wall with adjacent building will have less renovation costs.. Seems extremely difficult to find avg. cost, too many variables..

    Last edited by nivantj; 18-10-2017 at 04:42 PM.
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  7. #137

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    Quote Originally Posted by shri
    We've got a few blocks in another part of our estate going through a full external facelift - year long project which involves ripping the external surface (everything removed - including aircons etc). Seems like a f'ing nightmare to live there.
    Yes this is exactly the type of major renovation I have in mind. Noted, your building is 40-50y old.
    I remember vaguely Gold Coast's renovation occurred say 10 y ago, when the building was 20y old.

    I'm wondering what could be reasonable to assume on average, perhaps a few hundred thousand every say... 20y ?...
    So say a year's rent every 20 years, meaning rental yield would decrease 5%. Making all these assumptions.....

    I don't have to deal with all this with my REITs.

    * edit: nivantj I misread your above post, and edited my post accordingly.
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  8. #138

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    The way wages are skyrocketing in construction industry (e.g. $2600/day for construction worker in recent article), my median conservative estimate is 150k/20 yrs for the sake of calculation..

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  9. #139

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    Quote Originally Posted by nivantj
    The way wages are skyrocketing in construction industry
    Nivant yes I agree, that’s why I preferred expressing those major repairs as a faction of the rent rather than in $. My contractor told me once that his costs were accelerating at a much higher inflation rate than the average 3-4% headline rate in HK.

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