Buy a flat?

In my experience rent increases by at least 10% with each contract renewal and the banks just lowered their interest rates. (So my monthly payment just got down - only happened once when I rented and that was during SARS).


I think in the long run buying for self-occupation is a far better deal than renting a flat. That is if the building is not older than 10 years and the purchase price is similar to the banks valuation.


Buying for investment only is a bit risky if the property is not in a hot / upscale area or in an area that is still being developed. For example, a friend of mine is stuck with a flat in Tung Chung and can't get rid of it, because there is too much supply of new and almost new flats.