Like Tree19Likes

What's the point of spending a fortune on your flat...

Closed Thread
Page 3 of 3 FirstFirst 1 2 3
  1. #21

    Join Date
    Oct 2006
    Posts
    4,905
    Quote Originally Posted by GTI:
    If we are looking at Hong Kong, it's glaringly obvious that investing in land would yield higher than stocks (sans penny stocks). The dividend yield would be equivalent to the rental yield so both side are equal where they yield approximately 2% to counter inflation. Its the capital gain where properties excel.

    Look at all the top tycoons in Hong Kong. What sort of business do they have in common?
    I think everyone can see what is glaringly obvious with this post...

  2. #22

    Join Date
    Mar 2010
    Location
    Central
    Posts
    725

    Equities
    Real Estate
    Bonds
    Commodities

    It doesn't matter how you make your money as long as you make it. It's like telling Bill Gates that he should be more like Li-Ka Shing and get into property.

    If you are barely at home then don't spend money on it, use it for other investments hopefully you make more than you rent/mortgage increases.


  3. #23
    Quote Originally Posted by aliendavid1:
    Equities
    Real Estate
    Bonds
    Commodities

    It doesn't matter how you make your money as long as you make it. It's like telling Bill Gates that he should be more like Li-Ka Shing and get into property.

    If you are barely at home then don't spend money on it, use it for other investments hopefully you make more than you rent/mortgage increases.
    There is an irony in using Bill Gates to illustrate your point...how about Warren Buffett?

  4. #24

    Join Date
    Nov 2009
    Posts
    76
    Quote Originally Posted by dragon_simon:
    It's also obvious that you haven't a clue about the current HK market and the costs associated with buying/owning a property. The rental yield will hardly cover the servicing of the mortgage interest or the interest you would have got on your capital. What about insurance, sinking funds, factoring charges etc etc to name a few.

    Show me where in HK you can pick up a cheap enough property to throw off positive income and real property investors will be around there like a rash.
    Have you been out of your cave for the past decade? the going market has been nothing but a hot commodity and topic for the last ten years. You heard of the recent regulations on BSD and restrcited mortgage lendings and first for now public housing? These measures were taken to counter the property market from rising further.

    If you are talking now, you're not going to get people lining up for property. And this is because of the above reasons plus how much they have rose the past decade. But if you look at the past decade, properties in Hong Kong have outperformed stocks by far.

    Like I said, the yield rate is not our focus as the capital gain could easily compensate for it and beyond. You do know the interest rates you speak of are from you borrowing money from a bank, right? You are free to buy the flat outright and be charged 0% interest. This would an spoke to some comparison to your equity investment. If you borrowed money to buy stocks, it would easily be twice as much in interest.

    Speaking of mortgages, the leveraging on flats is also much higher at 2.33 times (30% down, 70% borrowing) before last year's restrictions on lending. Whereas a reliable blue chip like HSBC would get you a 50% (0.5 times) margin leverage at most banks and brokers at interest rates from 5-7%.



    Sent from my GT-I9300 using GeoClicks Mobile

  5. #25
    Quote Originally Posted by GTI:
    Have you been out of your cave for the past decade? the going market has been nothing but a hot commodity and topic for the last ten years. You heard of the recent regulations on BSD and restrcited mortgage lendings and first for now public housing? These measures were taken to counter the property market from rising further.

    If you are talking now, you're not going to get people lining up for property. And this is because of the above reasons plus how much they have rose the past decade. But if you look at the past decade, properties in Hong Kong have outperformed stocks by far.

    Like I said, the yield rate is not our focus as the capital gain could easily compensate for it and beyond. You do know the interest rates you speak of are from you borrowing money from a bank, right? You are free to buy the flat outright and be charged 0% interest. This would an spoke to some comparison to your equity investment. If you borrowed money to buy stocks, it would easily be twice as much in interest.

    Speaking of mortgages, the leveraging on flats is also much higher at 2.33 times (30% down, 70% borrowing) before last year's restrictions on lending. Whereas a reliable blue chip like HSBC would get you a 50% (0.5 times) margin leverage at most banks and brokers at interest rates from 5-7%.



    Sent from my GT-I9300 using GeoClicks Mobile
    It was not glaringly obvious that you were refering to the past decade in your previous post, why would anyone need you to predict yesterday's lottery result??? The comparision of the different investment incomes to offset inflation was bizarre to say the least.

    Your second post is incoherent, as it appears that it is not obvious that property is the best investment going forward. What leads me to think that you are clueless is the fact that you believe that by buying a property using your own capital means that it will cost you nothing in interest!