Posted by
darrenfrew
14 yrs ago
Hi guys, i have managed to save up a sum of money and I am looking to invest in property. Been looking at both here in HK or London in the UK. I feel like London is the better option due to current price levels, currency, upcoming olympics and capital growth potential. HK Market seems slightly high at present. Also I read this earlier:-
http://economictimes.indiatimes.com/International-Business/articleshow/6581177.cms
Would like to get your thoughts, thanks
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bing2
14 yrs ago
i would not touch property in hk at this moment. if you are from UK i would say why not. exchange rate is good now but i would not buy main stream properties advertised by property agencies in hk. i would find something older, but in good location and with special feature like terrace/ garden so if i want to sell i can sell it quick and price will not go down as much during downturn due to its uniqueness.
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I have heard the majority of London property developments being marketed at exhibitions in HK are developments unable to sell in the UK, is this true? I was looking to buy off plan and have around $350,000 HKD as a deposit
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When you said HK$350,000, is it the total money you have or you could come up with more money for downpayment? Because, if we base this on a Loan to Value Ratio of 60/40%, (60% by a mortgage) you could only buy a property for about HK$875,000 in Hong Kong, unless it is going to be owner occupied, then you will be able to get a loan of up to 70% from banks here. Unless you want to buy some new developments off plans and trying to flip it for a possible quick profit before completion, it is almost impossible for you to buy anything (either a first or second-hand properties) in Hong Kong for HK$875,000, given the high costs of real estate here. However, if you are lucky, you might be able to buy a fix-upper in a run-down walk-up building and/or undesirable neighbourhood in New Territories for this kind of money. There are chances but very slim.
Investing your money in real estate in other countries including UK may be a good idea given their lower costs of real estate; possible appreication of property value and possible higher rate of return on investments but before buying, you have to first consider who is going to look after the property for you since you are not living there; the costs of property management, if the property is going to be looked after by someone else other than yourself and since you are relying on the rents for mortgage payments, you have to make sure that it is not hard to find a good tenant and get the property rented out with steady income and after deducting all the expenses, you have enough money to service the mortgage payments etc. You also have to consider other factors such as local vacancy rate; commissions paid to agents; taxes, such as capital gains and restrictions from the local government on buying and selling the property later.
Since Macau and Shenzhen are not too far away from Hong Kong and real estate prices there are lot less than what we have in Hong Kong, maybe you would consider investing your money there instead? At least, in the weekends or every once in a while, you could go and see it; feel it and maybe even try to manage it yourself because of the distance and potential capital growth in these cities? Just a thought?
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I have to make some corrections to the previous comments and suggestions regarding the maximum price that you could buy for a property in Hong Kong.
It would make a significant difference in price if you could qualify for the mortgage insurance program through the Hong Kong Morgage Corporation Limited by paying them the premiums. The LTV Loan to Value Ratio could go up to 90% if at least, one of the borrowers physically lives in the property. Based on this formula and your downpayment of $350,000 and if you are qualified with enough income (50% of what you make) and other criteria, you could buy a property with an appraised value of up to 3.5 millions and put down as little as 10% from your own money but this program is only for owner occupied use, not for rentals or investments. If you are not buying the property for rental or investment purposes, this could be a very good program for you. You can get more information about this program from its website: http://www.hkmc.com.hk/eng/pcrm/ourbusiness/mip.html
But if you still think UK offers you a better deal, then go for it.
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Thats the reason i am going to Invest in London, i get much more for my money.
$350,000 = 30,000 GBP, I can put down a 10% deposit (20k GBP) on a 200,000 GBP off plan property with completion in 18 months. I would then need to pay another 15% (30K GBP) over the next 18 months in staged payments. I can then get a mortgage/finance loan for 75% of the property value and cover my monthly mortgage installment by renting the property out to a tenant. Keep for 7-10 years and statistically London property prices double in this time. Makes more sense to me?
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Good idea and good luck to you!
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"I have heard the majority of London property developments being marketed at exhibitions in HK are developments unable to sell in the UK, is this true? "
VERY TRUE ...
Biggest 3 month fall yet in Rightmove's index
===================================
Rightmove won't tell you this, but I will.
I have been "unpacking" the data in their news releases, and I find something very interesting, which has not been mentioned in the watered down Press Releases that they have been given.
Rightmove announced just two days ago:
+ a -1.07% monthly drop in their National index,
+ a -1.49% monthly drop in their index for Greater London
These are big falls, but the year-on-year index changes are still positive - so no reason for London homeowners to be concerned, right?
Wrong !
Take a look at the 3 months change of -7.1% for London. That is the biggest slide ever in the life of their index which goes back to 2002.
chart: http://img163.imageshack.us/img163/3259/001nvlf.jpg
That's an average of -2.4% per month, more than double the "1% speed limit" than we normally see during a crash. And if it does not bounce back very fast, it will be telling us that London may be set for one of the biggest price drops in History.
Fasten your seat belts !
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What about Alderney in the Channel Islands? No UK tax and no restrictions on property purchases by non-residents like in Jersey or Guernsey - at least that is my understanding but please check. Prices begin around 200,000 to 300,000 quid. Am considering it as a potential bolthole as I am a UK citizen who was born in the UK to a UK-born father (ie a very difficult 'domicile' to escape from). The only problem is Ian Botham has a place there and the island is only 3 miles wide.
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Walk,
What I posted is a very small piece of a much larger body of technical work that I have done on the UK market. From all that, I would not touch the market with a barge pole, or invest a Pound - not even YOUR money.
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Hey I just came across this forum because I was searching up London properties. Just some background - I'm a 25-yr old HK expat in Australia working. I've bought a couple of houses here in Melb and Syd, but find that prices here are getting pretty pricey (quite like HK).
And since I earn A$, would like to take advantage of it and buy into some good cities. I was thinking of coming back to HK with the money but the market seems a bit hot.
Anyway I've got around A$400k cash to play with for a deposit (which is around $3m HKD at current exchange rates), so was thinking of buying 1 or 2 nice small terraces in some blue chip areas in London which have come down. I tend to invest in inner city double-storey terraces in Melb and Syd so was thinking the same thing would be good in London since it's a similar culture. Any idea on what the good suburbs are? I don't know London well - only been there for work for 2 months and didn't really travel around much.
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Thanks walkup... that's probably my price range at the moment. I want to go for more blue chip suburbs, maybe a place like Notthing Hill etc. That fits your criteria?
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Deltaberry: I'm British and have lived in London for 5 years (albeit a while ago). If I were to buy there, I would go for the Barbican development. It's within walking distance to the City, the railway stations of King's Cross/St Pancras & Euston (Channel tunnel and main East Coast and West Coast railway lines and London University around Russell Square. You can also get to the West End very easily on the Central Line from St Paul's. Other good things about the Barbican are the security - much easier to protect from burglars than a terraced house - and the low maintenance. It's also in Zone One and on top of an arts centre. Well-known and very easy to rent out - if a bit 1970s in design but I suppose that now qualifies as retro-chic.
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Saimama. Really anything in EC2/N1 should be fine. If you want to go West, then try Fulham/Parson's Green.
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Yeah, you'll need about 750,000 pounds for something pleasant in a good area and arounf 400,000 pounds for a studio. Who says HK is expensive?.
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Hi folks,
I've purchased one apartment at the Woodberry Park-Waterside which is located in N4 London ( says still at ZONE 2), it's told to be the first phase of a big re-generation project for that area, along side with the two reservoirs, i thought that it might be a better value to have such beautiful water view..Does anyone familiar with that area and would very like to hear any good /bad comment on this property site. Thank you!
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If it's Finsbury Park you should be okay; if it's Haringey - less sure. A general rule of thumb for the UK is that people are happy with old neighbourhoods and buildings. Regeneration does not have the same cachet as it would in Hong Kong.
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During my research i have heard a lot of negative feedback on London property that is sold at exhibition, it can't be sold in the UK so they bring it out to Asia etc. What are everyones thoughts on this? I have found a few companies who specialise in UK property who refuse to do exhibitions as cost has to be passed onto the purchaser, these companies own & under right each development rather than just marketing a development for a developer based in the UK. Who would I be better/safer buying from?
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London is definitely on the slide.
The so-called jump in Rightmove prices, was buyers pushing up offers. They do this every year in October, and prices will get retraced quickly.
Many indicators are showing downwards indications now, and agents are beginning to find buying resistance in Hong Kong, as people here wise up. Once people based in Asia "get it" no one will be left to buy over-priced new properties in London.
If you don't believe me, look at the price of Barratt / BDEV and ask yourself: Why is it crashing to new lows? Or do a search on: Global+Property+Cycles on Google, and look for data on the UK and London.
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London still more expensive than HK. Why?
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If you want to buy into UK, buy into Zone 1 or Zone 2. That way, you are at least more assured of the capital value preservation, and also to avoid void periods where you can't get tenants. Buy as close to transport links as you can afford.
Beware of Managing agents, especially Corporate Lets.
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Yes, a recent survey by a well known property firm suggests that the cost of commercial property in London has dropped by as much as 44% in some areas. Due to the recession, many of these offices are left standing empty, costing freeholders money and forcing them to drop prices even further. As a result, new and small businesses have taken the opportunity to expand and buy London commercial property that they simply wouldn't have been able to afford during the preceding property boom. In case you are looking good deals in London property you might visit plazaestates.co.uk
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Do you ever feel the UK estate agents are not telling the whole story? Do they sometimes try to sell you properties that are in the wrong location? Are you often disappointed with them? If so, I can help. I am not an EA. I am a local that can find your answer. If you have any inquiry on any property of interest in central london, let me know.
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"If you want to buy into UK, buy into Zone 1 or Zone 2. That way, you are at least more assured of the capital value preservation..."
This, frankly, is Cr@p.
Did buying Midlevels assure better capital preservation than in TKT or Tung Chung over the last year?
It is mere agent-speak. I expect someone is trying to secure a higher commission on more expensive property.
Put a fork in it !
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Over the last 5 years prices of properties in NT have gone up more than those in HK Island.
It's obvious that when a more "secluded" are gets better incorporated into the "centre" through a better transportation network, and in general develops because more buildings are built there, and therefore more schools, shops, government offices are opened, then the prices will go up more than an area which has been "at the top" for decades and which has only one way to go: down.
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The same spreading out is likely to happen in London, thanks to:
+ Cross-rail, making it easier to live outside London and get in for jobs, shopping, or culture
+ Baby-boomers retiring, who may want to sell their expensive places in London, and buy a home "just-as-nice" for half price or less, at some distance away from London. (Since they will be retiring, they will not need to come "into Central London" every day
+ Rising taxes and paper work for foreign investors, making London property less attractive as an investment.
(If you want to read more about this, go to : xx)
On the Main thread here I was complaining about over-priced Estate Agents pumping up Mid-Levels a year or two ago, and they have now been proven sadly wrong. Don't let London agents put the same story over on you! Maybe ask them: "Where are you buying? Where are your parents, and your London based clients buying?"
Just because you are perceived to be rich, dumb money, and based in Hong Kong, it does not mean you have to fall for their spin.
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Would anyone be interested in investing into Student Accommodation within the UK we have a block of 35 student flats based near two top 100 universities. The sale price include tenants for the next academic year starting July 2013, all furnishings along with the Freehold. Great Investment opportunity, please contact me for further information and cash flow analysis.
We have sold and mange a number of other student blocks in the area, with a contact within both Universities are ensure all properties are let for each academic year
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Student accommodation...
+ How do you manage the wear-and-tear?
+ What do you do with the properties in the summer?
+ Can the UK really afford to keep so many Uni's alive?
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