Off the plan purchase

I am considering a good off-the-plan purchase from a reputable developer (reservations with Cheung Kong for instance as their quality sucks). I am open to location.

I want off the plan because I hate having to deal with tenants (experience with my properties abroad). I just want to flip it before occupancy.

I am looking at $5-7million budget as a starting point.

Anyone with experience in this or any good ideas on the current market, would you care sharing?

I have bought from Henderson Land and Sun Hung Kai Properties off the plan. No problem with them. Cheung Kong should be okay as well to be honest as should Hongkong Land, Chinese Estates (as long as not Macau) and Hang Lung or Kerry Properties. I wouldn't buy Asia Standard or Chinachem and I think New World Development leaves a lot to be desired. Not quite sure how you are going to be able to flip - espcially in this price range. Firstly, you'll have to pay a special stamp duty of 15% (I think) if you sell within the first 6 months. Secondly, at 5-7m you can probably only afford a new property in the New Territories which is where most of the supply is coming from - though you may be able to pick up a 400-500 sq ft flat HK side.


Special Stamp Duty is calculated as follows:



the stated consideration or the market value of the property (whichever is the higher) x the applicable rate



The applicable rates of SSD based on the holding period of the property by the seller or transferor before disposal -

(i)

15% if the property has been held for six months or less;

(ii)

10% if the property has been held for more than six months but for 12 months or less; and

(iii)

5% if the property has been held for more than 12 months but for 24 months or less.