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Sell property now? Posted by kissy.missy (572 days ago) we have a 428 sq foot flat in kennedy town and i was planning to sell it to get some profit but people are telling me to wait till the MTR is up and running. Find what you are after in our Hong Kong A-Z Directory Need a Part Time Maid? Commission-Free Flats Buy a Car? 2 for 1 Dinner  Posted by Loyd Grossman is Miss Venezuela (572 days ago) If you can afford it, I would wait. Why sell when people keep talking down the market? What if you and rent (thereby losing 100% of your rent money) and flat prices and rents don't go down or slowly rise? You're finished. There are very few cheap flats available at the moment and I don't think that will change with inflation at about 6%. Buying a flat is not just about making a quick buck - there will be optimistic and pessimistic periods - and HK people are often driven by sentiment. The MTR should make a big difference and it'll be completed in about 2 years.
Posted by Oly88 (572 days ago) Nobody knows for sure, but to me one question would be: what is your mortgage rate, and by how much would the property price have to drop for you to pay less monthly? Posted by punter (572 days ago) If you sell now, you'll realize your paper gains. You'll be able to hold it in your hands, so to speak. Posted by kissy.missy (572 days ago) well i do think that the price is not going to go any higher for a 428 sq ft/22 years old flat. the neighbour's flat with same size (not renovated) was recently sold for $2.91M. i bought mine nearly 3 years ago for $1.58M.
Posted by Oly88 (572 days ago) punter has a point (I was going to say "has a punter"). Posted by kissy.missy (572 days ago) yep - i think the same, puntaahh! Posted by kissy.missy (572 days ago) right then - another question for you since you're so bored!! (i mean "helpful"):
Posted by elsdon (572 days ago) Just as a note.. when MTR stations get announcement there is a noticeable price hike in real estate around the area (obvious.) Posted by Oly88 (572 days ago) I bought a property and put mine on the market the same day I signed the purchase agreement (thus overlapping of signing the sell and purchase agreement). I soon regretted doing this. If you buy and plan to pay for the flat with the profits from the sale of another property (which you haven't sold yet) you are going to have much stress, be worried, and will end up selling at a price slightly below what you were hoping. Posted by kissy.missy (572 days ago) then again i'll be bound to rent for one year after selling this flat (sigh) and i do not fancy paying an arm and a leg for these short term services apartments. Posted by Oly88 (572 days ago) As I mentioned, the only thing that would stop me doing what you are planning to do is the raising interest rate. If you are lucky and pay H+0.7 on your property, and will have to pay H+2 when you buy again next year, I hope you realise that your monthly payments will be much much higher. You can calculate how much higher here: http://www.gohome.com.hk/mortgage-calculator/en/?price=4750000&ratio=70&amount=3325000&interest=2.5&period=20 Posted by walkup2 (572 days ago) kissy.missy. For properties in that price bracket in that location they may not appreciate much more in the imediate future but then again they are unlikely to decline either. Selling an investment is one thing. Selling your home is another. However property is an emotional purchase and the loss of affection for the place you have might be an opportunity to move rather than sell up, so i would be looking for a sell and buy rather than explicitly choosing a distinctive time gap between the two. On a practical note maybe ask the bank if they might be prepared to port the current terms of your mortgage if you move soon to a new place. Posted by Loyd Grossman is Miss Venezuela (571 days ago) I think your chances of buying a similar place cheap a year later - and in the same area - are in the 'snowball in hell' category'. If this is your only flat and you intend to live here long term then you could very easily find yourself losing all your profit on rent and living up in a smaller flat in Tung Chung. I have a similar flat opposite the Sai Ying Pun MTR. I'll only consider selling it at 20,000 psf because that's what the land is worth (valued at about 7,000 psf). Of course, no takers at the moment but the rent is 20% more than the mortgage and my kids could use it when they grow up. I really think most HK homeowners are in a similar position so your chances of finding another place anywhere near valuation are very, very slim. However, someone else may also panic. Posted by kissy.missy (571 days ago) if i stay put in this current flat and leave HK in 5-10 years (building will be 27-33 years old), wont the old age of the building makes it less worth than it is now?
Posted by Oly88 (571 days ago) If you sell and rebuy you also have to pay government stamp, agent's fees, etc. Posted by elsdon (571 days ago) lol@the rent arguments.. Posted by kissy.missy (571 days ago) yes, my intention was to sell this one for 'that' profit and buy a bigger flat away from hk island (too expensive!). i'd have to commit to 1 year rent if i cant get the selling agreement and purchasing agreement to complete simultaneously. Posted by Loyd Grossman is Miss Venezuela (570 days ago) If you sell now, you'll get HK$/dollars and the Fed is about to embark on another round of dollar printing. This will eventually push up rents and house prices. Kissy.missy. If you get this wrong, you are toast. You may never get another chance to get back in. I wouldn't over worry about the age of the flat, it's the location (mainly convenience and schools) which is important in HK. Posted by Oly88 (570 days ago) Actually 2.91M for 428 sq ft is not overly expensive, and you will be hard pressed to find a much cheaper flat (once you account for agents' fees and government stamp) anywhere in NT. For example a flat in Ma On Shan Centre (which is one of the cheapest places in Ma On Shan) is 2.98M for 516 sq ft. If you sell and hope to buy cheaper you would have to wait for the prices to drop, and that might not come after all. Posted by kissy.missy (570 days ago) good points - thanks! Posted by muse07 (570 days ago) It depends a lot on the exact flat. I've been closely monitoring prices in Kennedy Town/Sai Ying Pun recently and I think that prices will in general continue to rise, albeit perhaps more slowly. Posted by walkup2 (569 days ago) Those Centadata figures are interesting. The Smithfield Terrace sales seem to be shaking out some of the longer term residents who are getting old/retiring? Urbana 38 still going for under 3 million and some of the poorer blocks still available in the 2 million + bracket.
Posted by white kiwi trash (568 days ago) OMG, Centadata again !! The property list that has never seen a price decrease. Posted by walkup2 (568 days ago) The Centadata info referred to are sales and purchase records recorded at the Land Registry. Posted by muse07 (568 days ago) Exactly. It's certainly not selective and is updated every weekday with sales registered. There's no suggestion that it doesn't record price decreases, which of course it has. It's a handy way to drill down in looking at recent sales in different areas and buildings. Posted by walkup2 (565 days ago) muse07, I agree with you. It is more satisfying to purchase an older walkup property, but it is becoming more difficult to find them at a sub 3 million price unless the public areas of the building are really grim. Even the area around Tai Ping Shan Street is going 'arty'. The smart money is buying blocks and doing them up, but still at an early stage. Posted by OffThePeak (564 days ago) Posted by kissy.missy (8 days ago) Posted by Loyd Grossman is Miss Venezuela (559 days ago) OffThePeak. What investor would that be? All out of the market now. Posted by OffThePeak (556 days ago) There are investors out there, and if the can have a leaseback for the 18 month period, then then may be happier to buy, looking at the yield.
Posted by walkup2 (556 days ago) kissy.missy it would be the equivalent of selling the property with a sitting tenant, so I guess that would mean selling with a standard 2 year tenancy agreement. I think it could be done with good will from both parties as a technical weakness of issuing tenancy agreement after the sale is completed (buyer might renege). |
