Posted by
andrew74
16 yrs ago
Hi! Folks, I am just wondering how much wealth is accumulated here? Is it accumulated among few or many? Are there huge number millionaires here in Hong Kong. Is there a large cap of people earning 50K~100K. Why these tiny little Flats are so expensive? Questions like this have been recently bothering me so much because I have been working so hard in exports with almost every other day overtime in past 10 years & yet not been able to accumulate for down 30pct 6M payment of my future property. Does that mean that with only speculative ways is the only way to make money here? I see very bleak outlook in exports. Why till today Hong Kong is sustaining so well with weak fundamental industries & only investment/financial service?
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It all depends. For those in jobs with big year-end bonuses, some may lock in their money by investing in property - if only so they don't piss it all away on drinks! (And yes, they would probably be in the 50-100K per mth income bracket). For those in less bonus-oriented jobs, some would put away enough for partial downpayment and borrow the rest from family - or alternatively they would gravitate towards new developments (with more easily accessible top-up mortgages so you need only 5-10% for downpayment). Also, first time buyers would often buy small (300-400 sq ft?) starter homes to get their foot on the property ladder and then upgrade (at least in bullish times).
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Why do you want to accumulate 30% of the property price? You call buy a property with 5% downpayment and 95%loan from the bank and even after taking 95% loan the rate of interest is not very high.
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30% is mentioned because it is the minimum deposit that you need for an old flat. I assume this is the case here. As for accumulating, I sympathise. It is very difficult with all the other expenses, but need to sacrifice here and there I suppose and just put that little bit away every month. perhaps easier to at least "get in" by opting for a newer flat and putting less down? can always go for the old flat if and when your property appreciates in a few years' time and you sell then.
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hong kong is one of the top 5 cities in the world in terms of disparity between rich and poor. there are a LOT of people here that earn less than 50,000HKG a YEAR. in fact it is very common.
sure, if you live on island side and in any of the expat areas prices are high. very different if you move out to NT or outlying islands etc.
obviously many people can't afford to buy, or locals have managed to save over several generations to buy and upgrade.
someone once told me that you will never make money working 9-5, you need to be making money when you sleep to get ahead. that is. clever investments, great ideas/inventions, starting your own company etc.
this is especially true in hong kong where money really is the game.
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Could we be heading for another peak property prices like 1997? Personally I do not think even at present the prices are justified by jobs & wages. Competition has increase fiercely in the past decade. Wages salaries have come down significantly since the 97-98.
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tpol
16 yrs ago
as rasbo says, you have to start with small investments. A smaller cheaper property or equities, funds, etc.
Leaving it in the bank is safe, but you'll never get ahead.
For the last 13 years that I have been in HK, money comes and money goes.
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