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Investment advice HK and abroad

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  1. #51

    Join Date
    Nov 2007
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    451

    sure thanks I am going to take some time and think over it


  2. #52

    You will certainly s... your pants when you sign the agreement. We went all through this, lol!

    shri likes this.

  3. #53

    Join Date
    Feb 2017
    Posts
    201

    Buy link reit. Prices have gone up even more than those of flats (+350% since 2006 for link reit, +300% for property prices), you get a higher yield (3.56% for link reit v. 2% for a flat), and you don't need to worry about a tenant, vacancies, repairs, etc.

    https://finance.google.com/finance?q...OMO20wS22aXwCQ

    Or then buy Sunlight Real Estate Investment. Since October 2011 it has gone up as much as link reit (+155%, way more than flats), but you get a yield of 5%, roughly double the one you get with flats.

    https://finance.google.com/finance?q...DoSN0ATypIqwDA

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  4. #54

    Join Date
    Feb 2017
    Posts
    201
    Original Post Deleted
    The OP doesn't seem to have enough margin. What if the tenant doesn't pay for 2 months, and after the OP kicks him out he needs to repair/repaint everything, and find a new tenant, pay the agent, etc? If one is 3/4 months late with the mortgage payment, what happens with the bank? Will it take back the flat? The OP doesn't have enough money to buy a flat. Do like me and buy reits.

    Regal Real Estate Investment Trust, 6.7% yield
    Langham Hospitality Investments, 7.2% yield
    Prosperity Real Estate Investment Trust, 5.4% yield

    All better options than having $ 5 M debt!! Also, flat prices have been flat over the last 2-3 months. It seems quite possible that we are at the top right now.
    Last edited by Jeff_; 17-10-2017 at 03:11 PM.

  5. #55
    Original Post Deleted
    Another thing often ignored is the discount offered to renters if they're long-term tenants with good relationships with their landlords. As you've mentioned, you're familiar with Aegean Coast. My friend lives in a 958 sqft sea-view flat valued at $8.7 million paying $14500 rent. If you do the Math on that, he's well ahead. We often consider market rates, but what may be advertised may not be the actual rate that people pay.
    shri likes this.

  6. #56
    Original Post Deleted
    it depends on your level of experience - personally I rather get into physical property than REIT if you have a long term view

    1 - no margin calls
    2 - deductible interest for taxation purposes
    3 - cheaper financing rate
    4 - 'value add' potential

    note: reit dividends obviously are not taxable whilst rental income is so there is some trade-off there

    if you're going to compare a mortgaged flat vs REIT - you need to do it on a levered comparison - no point looking at $10m property ($5m equity) vs $5m in REIT shares paid by cash; you need to compare it vs 2:1 leverage on the REIT and see who comes out on top after financing fees / margin call

    comparing centaline property price index in the last 2-3 months vs a REIT is a pointless comparison if your horizon is long term

  7. #57

    also physical property can have sub markets

    for example: one kai tak phase 2 (january this year) sells around 23% higher than phase 1 5 months before

    if one purchased in one kai tak phase 1 for $10m in Aug 2016, they have easily made close to $2m on their purchase in 5 months even before settlement / completion within that time period (thanks to HNA) on bank valuation. based on the latest sales for oasis kai tak, you could argue they probably made even more

    if you want to get into physical property, choosing the right property is crucial rather than looking plainly at the centadata index as a comparison


  8. #58

    one kai tak phase 2 evidence - here you go (average: $17.5k/sqft vs $14.4k/sqft 5 months before)

    One Kai Tak Phase Two sells out on the first day in new sign of healthy market | South China Morning Post

    now consider oasis kai tak last month (average: $20.2k/sqft):

    Wheelock sets the highest new flat prices for Kai Tak area | South China Morning Post

    not trying to hype physical property, but something to consider (property sub markets) rather than just looking at centadata index as your main comparison


  9. #59
    Quote Originally Posted by Jeff_:
    All better options than having $ 5 M debt!! Also, flat prices have been flat over the last 2-3 months. It seems quite possible that we are at the top right now.
    the index is flat mainly because the 15% stamp duty has killed the secondary market and everyone's gone chasing to the primary market which isnt considered in the centa city index at all

  10. #60

    Join Date
    Dec 2002
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    I like that series on Bloomberg. Love the Vanguard guys response... Just donate the shit.


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