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Rent reduction or sell?

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  1. #11
    Quote Originally Posted by HK_Katherine:
    I never purchased in HK because i thought the HK property market is a bubble. I still think it's a bubble. Evergrande is highlighting what a bubble market property has become in China too. Mainlanders love property; so if Chinese property starts to fail, they may see HK as a better alternative. Or HK may be infected with the Chinese decline. It's very hard to say. But if HK quarantine idiocy continues for much longer, expats will leave and that may put downward pressure on both prices and rents. So it comes down to your view on whether mainlanders will want to continue pumping money into the HK property market and whether the HK government will continue to kow-tow to Chinese pressure on borders. I guess we all have our own views on these things. I would probably hold in the short term but be prepared to sell fast if indicators start to flag a change in direction in the market.
    very few expats I know have bought….most just rent really nice places.
    calmathetic9 likes this.

  2. #12

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    When was the last time property prices fell in Hong Kong? Was it around 2003 ...

    Nobody knows what will happen in the next year / next five years. I'm in a similar position to the OP. No real need to sell, but at the same time thinking that when I exit Hong Kong it will be for good and I don't really want to leave any assets here.


  3. #13

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    Uncertain times politically and socially. You’ve made a healthy profit. Do you actually need the rental income or is it a nice to have?

    As Sage said it’s a highly personal decision but you’ve asked for comments. Personally I’d sell up and reinvest in something safe even if low yield. Maybe use a small percentage for something more speculative?

    Whatever you decide accept your decision and don’t look back saying you should have done x, y or z. A realised profit is a realised profit. Could have been more could have been less.


  4. #14

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    FYI, when our contract was up recently our landlord offered to lower our rent by around 3%. We didn't even ask for it, and we're in a now-hot location more people are seeking out due to work from home arrangements. So seems unreasonable to ask for an increase for an in-city flat. .


  5. #15

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    Quote Originally Posted by tropic:
    Never sell. Counter offer with the current rent rate and set your base minimum limit to 5-8% under it.
    Never sell?

    You mean die with a HK property as an asset in your will?

    What if you don’t have descendants to leave it to?

  6. #16

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    Quote Originally Posted by drumbrake:
    When was the last time property prices fell in Hong Kong? Was it around 2003 ...

    Nobody knows what will happen in the next year / next five years. I'm in a similar position to the OP. No real need to sell, but at the same time thinking that when I exit Hong Kong it will be for good and I don't really want to leave any assets here.
    It was pretty short lived but the drop in 2015 was actually pretty large, more than -10% and in some areas -20%. The problem with falling markets is that liquidity dries up, the flat you really would like to buy is probably not for sale. If it's just an investment you can probably find something but if you targeted a few specific buildings it might be very hard to snatch up something if it's not a more prolonged drop like the 1998-2003.
    drumbrake likes this.

  7. #17

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    Quote Originally Posted by Sage:
    What if you don’t have descendants to leave it to?
    Can leave it to a charity.

  8. #18

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    Quote Originally Posted by emx:
    Can leave it to a charity.
    Of course you can, or you can leave it to the state. Im questioning the logic of ‘never sell’ under the guise of being good Financial advice.

  9. #19

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    Quote Originally Posted by Sage:
    What if you don’t have descendants to leave it to?
    Depending on the size of ones estate, under a scenario like the one you mention, there is no reason why you can't have a will drawn up that has very clear instructions after your death, that divides ones remaining wealth between, charity, your fave political party or the children of your closest/best friends, giving people and matters that you care about a financial helping hand.

    I found out recently that a long term friend of ours who is in her mid 60's had made a new will very recently who has no known family left, made provision in for my children a % of her estate, which we were not expecting, but that is what she wants, which I thought was pretty cool of her.

    I'll do something along the same lines in the future once I've drawn up my final will and testament. I am lucky that my circle of friends here who I have known since I was a kid, are like family to me, something I missed when I was living in Hong Kong, where there was no shortage of 'acquaintances' which I never found particularly satisfying and tended to deliberately burn or keep them at arms length as I couldn't see any point to having them in my life.

    Nice when your friends have your best intentions at heart, which only true friends would ever do for you and you, them..
    Last edited by Skyhook; 03-10-2021 at 01:53 PM.

  10. #20

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    Quote Originally Posted by tropic:
    Never sell. Counter offer with the current rent rate and set your base minimum limit to 5-8% under it.
    If you are convinced that there are better assets or asset classes than property in HK - for the next 10, 20 years, what would be the logic to keep an asset that does not meet your goals or desired outcomes?
    Sith and HK_Katherine like this.

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