Property vs Time deposit

[periphery831]

Let's say you have 100M HKD.

Option A - Buy 10x10M properties ($20K rent each) = $200 per month, $2.4M gross a year.

Option B - Put 100M in a 12-month time deposit @ 4% annually = $4M net a year.

Option A has the potential for appreciation but has maintenance costs. For Option B, if the borrowing bank goes bust, you could potentially lose all your money.

Is Option B the more lucrative choice or am I missing something?

[Morrison]

Invest it all in Sex,Drugs ( legal drugs) and Rock’n’Roll

[Fatpigkenny]

Property in itself is a so-so investment. It’s the leverage that makes it attractive.

[Peaky]

Sounds more fun than continuing to pray for HK property appreciation.

OP yes you're right, HK rental yields really suck as prices are beyond anything the fundamentals can support (unless you are a true believer in the continuing allure of HK for 1.4 billion Chinese). The only realistic way the bank is getting into trouble is if there is a truly massive property crash...

Edit: leverage yes, but unnaturally cheap mortgage cap rates are also moving on up now

[ndt]

Is Option B the more lucrative choice or am I missing something?

Yes you are, priorities and dynamics of someone with 5M and someone with 100M are different so no point asking for the price of apply by giving an example of orange..

[GentleGeorge]

Option 3: S&P500 tracker.

No stress, appreciation.

[Hkemail888]

Option 4. Spend 10$ on mark six snowball coming up soon. End up with 180$M.

[ndt]

Option 4. Spend 10$ on mark six snowball coming up soon. End up with 180$M.

You are missing the point, his problem is where to invest $100M, you are adding another $180M.. Now give an answer for $280M..

[chobochobo]

What about investing in property in the UK?

[Hkemail888]

You are missing the point, his problem is where to invest $100M, you are adding another $180M.. Now give an answer for $280M..

easy bro. There’s another Halloween snowball one month after the coming snowball. 180+100= 280.

end up with 280M.
that’s what to do with the 180M.