Posted by
paris2003
16 yrs ago
We are looking to buy a small unit in Zenith or Belchers as an investment property. Which do you think is a better investment? Any other properties worth looking at?
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bing2
16 yrs ago
if i were you i would buy old walk ups around soho area. if you like new building, i prefer center stage on 108 hollywood rd. really nice building, good developer and nice area (will be nicer in the future) and so close to soho/ central. i personally dont like zenith, too far from mtr and in between causeway bay and wanchai. area is not as good as central/ soho. belchers i wont even consider it for investment because of its location.
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arak
15 yrs ago
hi
before the investing in property be sure about the market whether it is going up or down if the market is going down then wait until it will up again and look for attractive locational property for investment
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dadda, my 5 cents on it (though also just guessing):
for people to rent, it really depends on what related properties rent at. i notice that you are asking for a yield > 5% (@12500) which is always an aggressive rental price. in a depressed rental market, you might have to lower down because i don't think the last 4 years are representative for what you could get now.
any idea on what it could have rented during sars?
for people to buy, you are targeting single young people (studio, soho, etc.) not banker below 30years age. older people and bankers have higher salaries and will buy bigger places if they buy.
the people you target are not exactly the ones who can fork out a big upfront payment of 1.1m+stamp+incidentals.
last but not least, your type of property and its target market is what i would call a 'on the edge property', in a sense that during a boom you are the first to make really good money and could sell nicely, but during a bust you feel the drag of the market first.
i do believe that your type of property would attract fewer buyers these days because right now, most people tend to be a big more cautious to buy properties for speculation and short term living (which is again your target segment).
at the end of the day, i guess it's demand and supply though, so you might want to see what comparable apartments fetch
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What offers have you got, if any? No offers mean those who viewed it are not really interested (not matched to the need whether for rental or for own use or speculation, etc).
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What offers have you got, if any? No offers mean those who viewed it are not really interested (not matched to the need whether for rental or for own use or speculation, etc).
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dadda, don't rely on hibor to help you out.
i have made a 25 year analysis of hibor vs Prime rate and there were only two periods where hibor was cheaper. one was after the dot com crash lasting about 1-1.5 years and the other one is right now since oct/nov. every time else prime rate has been cheaper.
without making a study, i think most people sense this in their guts and it's even quite obvious that hibor is more volatile (and hence risky to increase sharply).
banks push it primarily because it's a good marketing instrument. in fact i thought the announcement that hsbc will join the hibor party was quite ironic because their hibor offer is not competitive (1.08% vs 0.88-0.98% of other banks).
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dadda...not sure wot size your apartmemt is...but for a studio..in this depressed market to pay 12.5K a month is a little high...like someone said here, the market is a little different now then when it was booming for rents a yr ago...but that is slowly changing as the local prop market is picking up..if you can afford to wait like you said, and are in no rush then best to wait..but if you're conservative and want it rented, i'd drop the rent to 11K or somewhere arnd that...if you're mortgage payments are low like you said, then a drop of 1.5K a month is no real bother....
good luck,
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dadda
have you actually looked around you at what comparable properties are renting/selling for? Don't you think that rental yields have anything to do with interest rates (basically speaking) ie if interest rates go down so do rental yields.
if it is empty then pricing is wrong...simple...the whole thing is supply and demand...
investment property? sounds like bandwagon property to me
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hi dadda, sounds good to me..also, consider renting it for short term at a lower price too. Even tho there is no or little cost to you, you're also not getting any gain whilst its sitting there doing nothing..its not making any money for you. Best to get even 10K/ 11K for 1 or 2 months short term than 0....
good luck
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4 weeks seems like a very short time period, i wouldnt worry that much. i think the average time to rent out an apartment in hong kong is close to 2 months and to sell is 4 to 6 months, but dont quote me on that.
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bing2
15 yrs ago
i just rented out my place on elgin st near fat angelo's for 12500. it was rented out about a week after i finished my renovation. i thought it would have gone in 2 - 3 days but it didnt. my place is probably bigger than yours as i have 1 bed room and nicely renovated.
your asking price is definitely too high for today's market. it would be difficult to sell at 2.9 even when the market was high 2 years ago. i got an offer for my place after i finished renovation for only 2.5 and this is what the market can absorb now, not 2.9. i would say 2.2 - 2.6m.
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No panic buying yet, and none is coming I reckon. If it's not gone in 2 months (rent or buy) and you're paying mortgage on it (even if the rate is low) it's still money down the drain.
You need to lower your asking price.
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bing2
15 yrs ago
walk up, trust me you cant sell at 2.9 million.
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ryle
15 yrs ago
Bing2 - who did u advertise thro? yourself online, agent or both? Thanks
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centre stage is really good. we bought a large size flat in 2005 and rented out in 1 month after we had got the keys. we are lucky to have a good tanant. So far, we dont need to pay mortgage with our own money, just the rent income is enough to cover all expenses. Now the property already went up 30%, if we sell it now at market price, we can make 3 million profit.
We prefer to central/soho area then wanchai or west side of the island.
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bing2
15 yrs ago
net size is 330 sqf so it's actually quite spacious for a walk up. it's on the first floor and 3 seconds from the elevator (elgin st). fully renovated (nice design too, used interior designer).
i advertised through asiaexpat and agents too. i got it last year in dec for below bank valuation. i just dont think the market can absorb 3 million now. i put it on sale for 2.9 million and the closest offer was 2.5 m. looking at the pictures i think my apt is bigger than dadda's.
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Hi all. Wan Chai is a large growth area at the moment, as is Sai Ying Pun and Kennedy Town. Investors can expect 10-15% movement over the next 6 months. Happy to help with leasing and sale & purcahse advise - nathanial-bibby@hongkonghomes.com.
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Realtors advertising their services on their forum! You know when real estate prices have peaked when...
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