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First time property investment - $4m - Advice needed

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  1. #41

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    Quote Originally Posted by HongKongFoot:
    If you sell at the top, where do you propose to live while you wait out the storm? A rental where you pay about 30K a month in rent? You just eliminated all your gains if the storm lasts longer than a couple of years. .
    See what I highlighted.

    None of us can predict.

    Had you bought in 94 sold in 97, I am sure the 3 years renting till 2000 to re-enter the market were MORE than covered by your gain on the property,

    The difference between you, the Brit and me, that is that I admit there are trends (ie, the example I described above is more the exception than the norm) but I also admit there are "opportunities" regardless of what the market is.

    You or the Brit come here to say: GOOD / BAD.....

    There are shades..

    I am not as categoric as you are. that's it.
    Last edited by Mat; 07-03-2011 at 02:06 PM.

  2. #42

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    Quote Originally Posted by HongKongFoot:
    Bottom line is that if it is not liquid, it is not an investment in the traditional sense. You could of bought a two smaller places for the same price. Lived in one of them rented the other one out and made rental income.

    Heaven forbid you have to live in a smaller place, that would be uncivilized. I could not even fathom blowing 25K+/month on rent, thats about $3,300USD/Month.

    Based on my net income, I can afford more than three times that amount in rent, but my rent is less than 1/4 of what your theoreotical rent would be.

    Wow you are a balla, when I grow up I wanna be just like you.

    Not!
    I can not fathom blowing $25k a month on rent either, which is why I bought a flat. I still get the same flat, but at a fraction of the cost (assuming the value holds and the market doesnt crash).

    I also find it strange if you think I am showing off or something. Perhaps it is my writing style. But I am just laying out facts and giving some cold hard numbers to compare renting vs buying. I actually think $25k is probably somewhere in the middle and not really extravagant. There are people around here paying 10 times more than me, and others paying 10 times less. Other people here were talking about $4m properties, I happended to purchase a $6m property. Big deal. Its hardly extravagant. Yes, I can also afford many times more if I want, or I could have purchased 2 smaller properties. If I was single then probably thats what I wound do. But I have 2 kids and at a different stage of my life. It was my lifestyle choice. For me, a $6m property fit well within my means and meant I have other funds for other investment purposes.

  3. #43

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    Quote Originally Posted by bdw:
    I can not fathom blowing $25k a month on rent either, which is why I bought a flat. I still get the same flat, but at a fraction of the cost (assuming the value holds and the market doesnt crash).

    I also find it strange if you think I am showing off or something. Perhaps it is my writing style. But I am just laying out facts and giving some cold hard numbers to compare renting vs buying. I actually think $25k is probably somewhere in the middle and not really extravagant. There are people around here paying 10 times more than me, and others paying 10 times less. Other people here were talking about $4m properties, I happended to purchase a $6m property. Big deal. Its hardly extravagant. Yes, I can also afford many times more if I want, or I could have purchased 2 smaller properties. If I was single then probably thats what I wound do. But I have 2 kids and at a different stage of my life. It was my lifestyle choice. For me, a $6m property fit well within my means and meant I have other funds for other investment purposes.
    Bdw, no need to justfy yourself.

    HKFITM comes across as way more of a show off than you do.
    MovingIn07 likes this.

  4. #44

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    It's not quite that simple though bdw. The sums go something like this:

    (Let's assume a flat costing $6M, 70% mortgage, or rent at $20K)

    Buy
    Capital outlay $2M (including taxes etc, yes I know I'm rounding slightly here)
    Mortgage interest on $4M, about $8K per month
    Management fees & rates, about $1500/month.
    Maintenance etc: let's say $500 per month to make
    Total monthly outgoings: $10K per month

    Rent
    Outgoings of $20K per month
    PLUS you invest the $2M in something else and get, say, 6% return, which brings income of $10K per month
    So net you are paying $10K

    If the property market goes up then buying is better, if it goes down then renting is better, and if it's unchanged then it's a wash.

    Obviously there are at lot of assumptions in there - tweak the values for your particular situation.

    Last edited by PDLM; 07-03-2011 at 03:35 PM.

  5. #45

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    Quote Originally Posted by HongKongFoot:
    What can one rent for 25K a month? 3000 Sq feet in Midlevels? You probably have a maid...
    I think you might be a little out of touch with rental prices dear boy.
    MovingIn07 likes this.

  6. #46

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    Quote Originally Posted by HongKongFoot:
    What can one rent for 25K a month? 3000 Sq feet in Midlevels? You probably have a maid...
    Are you crazy or what? 3000sq ft in midlevels is probably more like 100k a month. And yes, some people really do pay that much. I have a friend who pays 28k for 800sq ft in Pokfulam - nice enough, nothing special. I had another friend who had a similar sized flat in Wan Chai and she was paying 47k a year ago - probably over 50k by now ....

  7. #47

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    Quote Originally Posted by HongKongFoot:
    Well then enlighten me then. I dont rent so I really dont know what the prevailng rents are.
    dont you buy property and rent it out as an investment?
    if yes, what size/location/price do you rent out at?

  8. #48

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    Quote Originally Posted by HongKongFoot:
    Well then enlighten me then. I dont rent so I really dont know what the prevailng rents are.
    First tip then is if you don't know what you are talking about it is best to keep your gob shut.

    My previous 900 sq ft in Heng Fa Chuen was HK$25,000.

  9. #49

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    Quote Originally Posted by HongKongFoot:
    Well then enlighten me then. I dont rent so I really dont know what the prevailng rents are.
    Moving in is pretty much right. For 25k, Mid Levels, in a nice place you are looking at around 800 square feet. Possibly you could get a more crappy place at 1000 square feet. And for a "nice" place, in a modern building, you might only get 600 square feet for 25K.

    3000 square foot in Mid Levels is definately more than 100K a month.

  10. #50

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    Quote Originally Posted by HongKongFoot:
    What can one rent for 25K a month? 3000 Sq feet in Midlevels? You probably have a maid...
    sorry this made me spurt out my tea ! Glad I stuck with reading this thread for that alone

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