View Poll Results: How much (%) of your household income do you spend for your housing rental?

Voters
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  • Less than 5%

    20 4.50%
  • 5.1 to 10%

    32 7.21%
  • 10.1 to 15%

    46 10.36%
  • 15.1 to 20%

    61 13.74%
  • 20.1 to 25%

    79 17.79%
  • 25.1 to 30%

    89 20.05%
  • More than 30%

    117 26.35%
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How much (%) of your household income do you spend for your housing rental?

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  1. #31

    Join Date
    Jan 2006
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    Park Island
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    2,058

    I would rather not to take that risk. On top of that, with property as an investment, unless you're intending to live in HK for a real long time, as in more than 10 years or so, you're never sure of the returns. I would rather rent and not be burdened by such an investment. But then again, this is from a novice point of view.


  2. #32

    Join Date
    Mar 2006
    Location
    KTK rules!!!
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    776
    Quote Originally Posted by RastaMan
    Of course it's different for property. Me thinks that when a developer decides to build something he gets a 60 year lease on the land. So every property has a different lease for the land left. I believe that's how it works in Europe, and I believe it's the same here.
    On the land lease - I have no idea on this hence the question. I am only a few months here in HK so I find this thread a good venue to discuss such issues. I don't know land lease applies to all properties. In my country it's rarely the case. I don't care about Europe, and we can't assume Europe is the same as Asia, hence the question. Why the "of course"???

    Quote Originally Posted by RastaMan
    Of course the property depreciates after 20 years. Depreciate means "reduce the value". It doesn't mean that after 20 years the property is worthless. It even depreciate after 5 years, for that matter.
    I never asked whether a building depreciates after 20 years. But you claimed that it will substantially decrease in value after 20 years, which is the issue I'm probing.

    Quote Originally Posted by RastaMan
    Coolgirl, no offence, but if you want to put 4 million bucks in a flat, I think you should find out first all the nitty gritty of that investment.
    That's why am I asking all these questions.

    If you are too impatient to understand the question before answering, I suggest you keep your post to yourself rather than being condescending and assume a person does not know anything at all.

  3. #33

    Join Date
    May 2006
    Location
    Pampanga, Philippines
    Posts
    20,021

    If a property is maintained there is no reason why it should reduce in value. My house in UK was 100 pounds in 1914 and 200,000 pounds now. I know flats in HK are different but even so I would expect appreciation over time not depreciation. The flats in Heng Fa Chuen are 16 years old and they sure aren't cheap.


  4. #34

    Join Date
    Oct 2006
    Posts
    288
    Quote Originally Posted by coolgirl
    On the land lease - I have no idea on this hence the question. I am only a few months here in HK so I find this thread a good venue to discuss such issues. I don't know land lease applies to all properties.
    So this is why I/we told you. You are welcome.

    And actually it doesn't. There are some people in HK who actually OWN their land. But I don't know if you can buy it from them. Another thing you should find out. Take a note before you forget.
    Quote Originally Posted by coolgirl
    In my country it's rarely the case. I don't care about Europe,
    You should! Europe is the mother of all civilisations!
    Quote Originally Posted by coolgirl
    and we can't assume Europe is the same as Asia, hence the question. Why the "of course"???
    The of course because: how else would you organise it? Would you have a government that leases out all land on Hong Kong from (say) the year 2000 to 2060, and then from 2061 to 2121, etc.? You wouldn't have much investment in housing from (say) 2030 to 2060 and from 2090 to 2021, would you?
    Quote Originally Posted by coolgirl
    I never asked whether a building depreciates after 20 years. But you claimed that it will substantially decrease in value after 20 years, which is the issue I'm probing.
    No, I wrote that "There seems to be quite a lot of depreciation in properties here." And 30% less in 20 years (your data) seems a lot me. I guess in Europe we build buildings of a better quality than where you come from.
    Quote Originally Posted by coolgirl
    If you are too impatient to understand the question before answering, I suggest you keep your post to yourself rather than being condescending and assume a person does not know anything at all.
    It's you who isn't reading people's replies to your questions. You should be grateful of people giving you advise and answering your questions. That's what we do in Europe. But then, Europe is the mother of all civilisations...


  5. #35

    Join Date
    Apr 2003
    Posts
    12,385

    >> Europe is the mother of all civilisations...

    On that note ... lets be a shining example of how civil Europeans can be ... left chin please.


  6. #36

    Join Date
    Oct 2006
    Posts
    288

    Hi Mr. Know it all. If you want to delete the subsequent posts fine, but I would like to specify that I was indeed joking (as someone asked me if I was). (and I think that the subsequent posts were actually quite funny).


  7. #37

    Join Date
    Apr 2003
    Posts
    12,385

    yeah .. but you have to keep in mind that not every one gets the wit and sarcasm on display and that can lead to a downward spiral (as shown in the responses I canned).


  8. #38

    Join Date
    Feb 2006
    Location
    Mid-Level
    Posts
    305
    Quote Originally Posted by hullexile
    If a property is maintained there is no reason why it should reduce in value. My house in UK was 100 pounds in 1914 and 200,000 pounds now. I know flats in HK are different but even so I would expect appreciation over time not depreciation. The flats in Heng Fa Chuen are 16 years old and they sure aren't cheap.
    Yeah - I agree with this. I can't really speculate on the property market here in HK, but in the UK the general consensus is that over time prices will always go up (even if they flatten or drop in the short or medium term). If you are buying property as a speculative investment (especially a short or medium term investment) then its more of an issue. If you are buying a property in which to live or own long term, your primary concern is whether you can service the debt repayments. To me, it makes sense to buy if you can afford to. In 10 or 20 years you will own a valuable asset which can be sold or rented out (in order to recoup some or all of the money spent) or simply lived in mortgage / rent free. However, 10 or 20 years paying rent just buys you 10 or 20 more years of renting at prices you may not be able to control. The 2047 does sound like a concern though...

  9. #39

    Join Date
    Aug 2006
    Location
    Hong Kong
    Posts
    59

    If the value of the apartment decreases significantly at 20 years (?), then wouldn't it be best to buy an apartment that is 20+ years old, seems like the best deal, they've gone through the worst dip.

    At least to me the new apartments see waayy too pricey compared to the 20+ year old flats; with the same budget in a new building you get much, much smaller flat typically in a cold, hotel-like design.


  10. #40

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    3,648

    let me put it in perspective.

    in hk, and most commonwealth countries, there is such thing as a limited lease on land.

    singapore is usually 99 years, hk is probably 60 years. there are exceptions though. much longer tenor is possible.

    so its not about the age of the property, but its about how many years left before the lease expires.

    then, if we expand the argument, 2047 is a tricky point because that's when hk is returned back to china. if chinese government is open to hk's system, it will stay... if not.. tough luck..


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