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First time property investment - $4m - Advice needed

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  1. #81

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    Interest rates are likely to go up this year - the last pillar that people like randy1 rely on to make these assertions will crumble.


  2. #82

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    Quote Originally Posted by medaman
    The article is saying that homes appear to be affordable due to the low interest rates. Once they go up, the affordability index goes down and mortgage-to-income ratios "may rise further to exceed their peak in 1997." It also goes to compare the age of the building now averaging 19.8 years compared to 10.8 years in 1997.
    From what I can see the affordability in 1997 was itself out of line with historical affordability. So it is not that they are particularly affordable now just that they were VERY unaffordable in 1997. Also as the deposit required is now typically much higher than before the figures in the chart do not tell the whole story.

  3. #83

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    Quote Originally Posted by HongKongFoot
    The average local HK'er with an average HK'er salary would not be able to afford the properties even now with the interest rates the way they are. Lets not forget that the majority of the population in HK make less than 12K a month.
    And lets also not for get that the majority of those people get public housing...

  4. #84

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    Quote Originally Posted by HongKongFoot
    The demand for public housing far outstrips the supply, its not like in SG where once you meet a certain criteria you are automatically entitled to housing.
    Agree, and I think this is a good thing. If the supply of public housing outstripped demand, that would definately be positive for private home prices, which would obviously fall.

  5. #85

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    Sorry - i mean "that would definately NOT be positive for private home prices, which would obviously fall".


  6. #86

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    Quote Originally Posted by randy1
    Agree, and I think this is a good thing. If the supply of public housing outstripped demand, that would definately be positive for private home prices, which would obviously fall.
    A good thing? It means people who need housing can't get it.

  7. #87

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    If you gave everyone who "needed" something whatever they wanted, no-one would work for anything. Part of what makes HK the way it is, is that if you want something you need to go out and work for it.


  8. #88

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    There's working and there's working though. Many people here work incredibly hard and still cannot afford a tiny flat and having pretty much no welfare when they are too old, or sick, to work. Housing in HK is a stealth tax - and not a progressive one at that.


  9. #89

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    I thought around 40% of HK is public housing. That's a pretty big number if its correct. I know not everyone has it easy - I feel for the old ladies collecting cardboard on the street, etc.


  10. #90

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    I do as long as they don't plunder The Standard and leave me without a newspaper in the morning.


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