hi citizens
let's say I have 3 million to put down as a down payment. Need 3 bedrooms at least. To live in. Location not important for this exercise/advice-begging.
Where to buy? What to buy?
Alternative would be spending say 2 million for an investment property (not to live in). Where to buy? What to buy?
Not sure any of the above is even possible in current HK market!
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do you have job in HK ?
if yes , with 3 m for downpayment, you can buy a much higher priced flat with bank mortgage.
approx 10k salary per month can borrow 1million from bank
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Yeah decent, even very good salary but not banker/hedge/corporate lawyer level.
So i was assuming that free for down payment indeed, and the rest mortgaged--- sorry for not making that more clear.
But thats not much for a four person household, in this property market.
3 million would actually be a big stretch but do-able in theory. So then the property would I guess be in the 7 million range? with the new 40% cap imposed by douchebag John Tsang.
what can one buy for 7 million in this market-- ie any 3 bedroom, say 700+ NET square feet?
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ok , assume your budget is 7m , which 40% for downpayment , that cost you 2.8m,
and i assume you are not HK permanent resident, that mean , you need to pay extra stamp duty (Buyer stamp duty 15% !!! , crazy i think)
anyway .
7m can buy a flat with 700+ net sq feet, it all depends location and type.
even a flat unit of 10year old , or a new flat can at this budget , but you need to look at more remote district like
Yuen Long, Tuen Mun.
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actually am a PR so no worries on that.
Are there agents/consultants out there who can do a city-wide search for people? I dont mind remote if I am not living in it. Otherwise it gets complicated, but still do-able.
YL, TM okay I guess.....
Are there any new/newly discovered places/estates in this range, like Park island was a few years back? Chai Wan area?
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in yuen long westrail station
sun yuen long centre can give u net area of 780, about 7.5m
similar size in yoho midtown need 1m more
if go for The Reach, 7m can buy new one, but need shuttle to westrail
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hope that will give you an idea,
7m is a lots , all depend location , location and location.
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Why buy in HK?
Everything's over-priced... Yields are lousy.
And the extra Taxes and duties will eat up your profits
"Are there any new/newly discovered places/estates in this range, like Park island was a few years back? Chai Wan area? "
Park Island "newly discovered"?
You must be joking !
From a HK perspective I would say the Philippines is "newly discovered"
I very recently bought my second property there, paying just less than HKD 500k,
and I am expecting a 10% Gross yield. Do you really think HK has anything to
compete with that?
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Don't however just concentrate on gross yield. Consider purchase taxes, sales taxes, ownership laws, political stability etc. And of course potential capital gains. And also consider where you will live ie HK rent is expensive, does your rent in HK (assuming you rent) exceed your net income from investment elsewhere? Having said that I personally would not buy in HK at the moment as I believe there are better alternatives whether its a short-term flip or long term hold, But that is just my opinion, I suggest you do some research, and take professional advice (mine is not), worth paying. the small cost.to do so.
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Thanks GK and OffPeak-- appreciated actually. Interesting to hear some negative views in re entering the HK property market at all. of course I know PI is old news by now. IN general it indeed seems like a bad time to buy-- but that just might be my budget talking compared to what one actually gets for 2-3 million down.
Greeneking what are better alternatives do you think? I'm looking more for a long term hold, i.e. ten years or so with property, prob more like 15.
I'm trying to do some research-- into areas/locales to buy within HK.
As for professional advice, whom might I contact for that, aside from actual property agents on the street? I did get a message from someone here.
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NOTAEEUROPEAN,
It is unlikely you will be able to go and talk to an industry expert (for instance a real estate consultant) and they will give you guaranteed answers as to what to buy and where, what I suggest is you look at the various reports produced by professional institutes, banks, trade magazines, newspaper adverts, property sales shows etc as to the next hot-spot and then you make a decision - seems this is what you are doing. Bear in mind for the last few years some of the world’s biggest financial institutions have been saying HK property will fall yet this so far has not been the case (who knows what will happen tomorrow?). I take any advice on what to buy and where with a pinch of salt, suggest others do likewise. However I would strongly suggest before you buy any place that you talk to a local lawyer or similar professional and know the full costs of both buying and selling, and the ownership rules, worth the small fee IMHO. At the end of the day it is like any other investment ‘gamble’ – for instance is Greece or Spain low now and likely to get higher? Or better to go with say the UK? Or stick to HK? As you mention where in HK? How much can you afford to loose? Only you can make the decision, wish there were easy answers to your questions – if there were I’d keep them to myself! And any comments made here are not to be followed unless at your own risk and nothing to do with me!Oh, good luck as well
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That's good advice from Greene King
There are lots of different opinions on what to do.
For instance:
+ I am a Seller in Hong Kong, receiving more than HKD 15,000 per sf on my latest sale, and
+ I am a Buyer in Manila
But I am trying to buy what I can find that's attractive and price below market there.
The Manila market is less efficient than HK, and so there seem to be some genuine below market opportunities. But some of the transaction costs there may look high to HK based buyers. For me, getting a decent Net price and Net Cash flow are my objectives
The main two points for buying in the Philippines are:
+ Low cost: I am targeting quality new properties in the Makati area at near PHP 100k per sq meter (that's equivalent to HKD 1,700 per sf), and
+ High yields, like 8-10% gross, and possibly more
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I would not recommend buying a property in the philippines it is not a safe place and too much corruption. the streets are very dangerous at night as it is very dark and transportation is so bad traffic all day long.
i have sold my property in hong kong and am buying into hong kong stocks
i can use the dividends to pay for my rent.
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HIGHDESERTNOW,
In most places in Asia if I were buying property for rental return or capital gains (as opposed to living in myself or even visiting) I'd not worry what the streets are like although I would worry about the legalities of the purchase and the quality of management etc.That's why I'd only buy from a reputable developer and make sure to hire a local lawyer and even then be prepared to walk away if I had any doubts.
I have never been 'in to' stocks (other than my pension) myself but I am considering taking a dip, a sure sign things are overheated?
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"I would not recommend buying a property in the philippines it is not a safe place and too much corruption. the streets are very dangerous at night as it is very dark and transportation is so bad traffic all day long...."
That is an opinion, I happen not to agree with
I have been to the Philippines many times, and just returned from 8 days in the place. My own opinion is informed by research and experience. I am not suggesting buying randomly in the country, but rather in places like Makati, and Bonafacio Global City, (BGC), which have better security than other parts of the city. And I recommend buying from a handful of financial strong top developers, such as Ayaland.
Secondhand and third hand opinions, are often wrong, as I found even in HK when people told me to avoid Tung Chung, because it "was excessively polluted." I lived there, and invested there, and discovered that popular opinions repeated over and over by HK people are often wrong - and they may keep you away from some good opportunities.
So DYOR / Do Your Own Research.
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