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Property vacancy to reach all time high...

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  1. #11

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    Quote Originally Posted by article:
    So planned to use the profits from selling their two-bedroom flat in Sham Shui Po to buy a flat to live in in Kingston and another one or two units in other cities for leasing.
    I don't know much about UK property, but the people I do know have apartments in regional cities like Birmingham and Manchester, and their mortgage repayments are higher than the amount they can rent for - i.e. they have to supplement their mortgage payments from their own salaries.Is this broadly true for apartments like these HKers are likely thinking of buying and renting out?

  2. #12

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    Quote Originally Posted by gch555:
    Is this broadly true for apartments like these HKers are likely thinking of buying and renting out?
    If you've bought your apartment more than 10 years ago then your rent today probably covers the mortgage payments. If you'd buy one now, not even close. I rent for way less than what the mortgage would be. And rent includes management fee and rates, which I would have to pay in addition to the mortgage.

  3. #13

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    Original Post Deleted
    Thanks for sharing! Would be great if more people can share anecdotal stories, because I don't trust the official statistics at all. Is there anyone who moved in Mid-levels that paid close to asking or close to similar levels since in 2018?

  4. #14

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    Quote Originally Posted by RobRoy:
    Thanks for sharing! Would be great if more people can share anecdotal stories, because I don't trust the official statistics at all. Is there anyone who moved in Mid-levels that paid close to asking or close to similar levels since in 2018?
    Chatting with one of our classifieds advertiser who has used the site for 3 tenants over the last 6-8 years - even at 2018 prices, the inventory available in their building is high and there are no pings / enquiries from the classifieds or from agents. The last rental in 2019 had two competing offers within 2 weeks of advertising on here.
    RobRoy and seirin like this.

  5. #15

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    Original Post Deleted
    Your right, I'm getting ahead of myself. But I need to plan for the medium term, once COVID is past.

  6. #16

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    Quote Originally Posted by mrgoodkat:
    If you've bought your apartment more than 10 years ago then your rent today probably covers the mortgage payments. If you'd buy one now, not even close. I rent for way less than what the mortgage would be. And rent includes management fee and rates, which I would have to pay in addition to the mortgage.
    Yes but remember that mortgage repayments should be split into "Principle + interest", and with interest rates so low in HK, if your mortgage repayments are for example $30k, then principle is around $23k and interest around $7k every month.

    The principle $23k should be treated like a "forced investment" in your asset, your future, can cash out and get back later if you sell for the same price you purchased.

    Only the interest $7k is "wasted expense" that is comparable to rent. So $7k plus a few more K for management fees and rates. Maybe $10k a month? So $10k vs whatever you rent for. This would be a true comparison of renting vs buying.

    Basically with a simple comparison, renting will never be better than buying if you are buying to live in, and make assumptions such as the price of property will not collapse, or not assume things like "I could use the money I would have put down in a deposit to invest in XYZ stock market instead" etc. So all these other peripheral variables will decide whether is better to buy or rent. But never a direct comparison of mortgage repayments vs rent. Buying will always massively win over renting when you just do this basic comparison.
    mrgoodkat and aublumberg like this.

  7. #17

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    Original Post Deleted
    I have a few friends who want to leave but are waiting for Covid to calm down in their home countries. There will be a wave of departures second half of this year.

  8. #18

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    non-mainland expat levels are down

    mainlander expats, not sure though. suspect more mainlander will be coming over to take over the typicall "western" or non-mainlander expat... probably paid less. so net-net i see the expat revenue pool shrinking (anecdotally i got a pretty good rental deal in a western expat neighbourhood last dec. suspect it may even get cheaper now).


  9. #19

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    Southside supply is still pretty tight in the “crazy expensive but not ludicrous expensive” bracket. We pay about 10% less than peak market. Plenty vacant units in the 80-100k+ range, but that has been the case for a long time.

    I've got friends leaving at a much higher pace... not an exodus yet but where opportunities arise people are biting without much hesitation.


  10. #20

    I'm personally staying in HK (bought a flat in 2008) but I believe many expats are going to be leaving due to rapid loss of freedoms and opportunities that normally exist in an international financial centre with a free flow of information.

    Before I immigrated to Hong Kong in 2005, my parents warned me that eventually there could be a full Leninist takeover. They both escaped from an Eastern European Communist state. They told me a lot about their experiences when I was growing up, and while their experiences didn't seem very helpful growing up in a pluralist society it is quite helpful now when adjusting to the "new Hong Kong".

    Last edited by markbradley; 21-04-2021 at 01:52 PM.