I got hk$2.5m in cash.

Hi

Recently, my close relative living in foreign country called me and offer hk$2.5m to me to invest in HK. He will be giving me 10% of the profit from the investment. All i have to do is manage the investment as he is not in HK. I was thinking to advice him buying a flat and then leasing it out earning the rent. Then resale it after a period when it can make a good profit. I could then have 10% of the lease amount every month and 10% of the profit of the resale amount.

Can anyone comment on this or advice any better alternatives.

Thx

Hi Thx

I would really like to find a place where demands are more than supply. But Sai Kung seems to me a rural area. i hardly see a high-rise building there. If fact what so special about that place that could attract people? Sorry to question your comment because i have never been to Sai Kung. Will appreciate any feedbacks.

As a property agent I can tell you that a lot of people, especially expatriates, are becoming interested in Sai Kung because they want to live somewhere quieter and less polluted. At the moment the demand for property in Sai Kung greatly exceeds the supply. However, the people I've been dealing with have all been looking for houses or duplexes and you can't buy those for 2.5M. You would be looking at buying a 700 sq ft flat and I honestly can't tell you what the demand would be like.


Have you considered the western side of HK island - Sheung Wan, Sai Ying Pun, Kennedy Town? You can still buy flats there for around 2.5M and it should be a good long-term investment, as the value of property should go up when the MTR extension has been completed in around 2012.

The investing relative is very interested in area like Wanchai, Causeway Bay but he said it should not be on the tram road. He ask me to find in these areas. But i have seen many owners selling their flats on gloucester rd and lockhart road at high prices. And most of them do not have net size bigger than 600 sq ft. I want to know what would be the best offer expected in these areas so that i can decide whether to get deep into these areas or not ?