Sell or Keep?

Some advice needed.


A couple of years or so ago I started buying some property in HK with a view of providing for my retirement. Recently prices have appeared to start rising, and today two agents contacted me offering me good prices on a couple of places I own.


I'm in two minds whether to sell or keep. Factors I can think of for keeping include:


1. I bought for long term. Why sell now?


2. I have no need to sell - mortgages are covered by rental income.


3. If I do sell, what do I do with the money after paying off the mortgage? Buying more property means lawyer, agent and stamp duty costs. Stockmarket already seems high.


4. Property is not at its 1997 (bubble) prices (yet).


5. (this one I'm not sure about) - the HK$ is undervalued - if it loses the US$ peg, then my HK$ assets should rise in value.


Factors for selling include:


1. I'm making a good profit on a couple of years investment. I should lock in profits now.


2. With the money I make I can buy a 'higher quality property'. Now my properties are around the 2-3 million price.


3. If I take cash now / in the next 6 months, I can be ready to make investments if / when there is a future downturn in prices.


At the moment I'm more inclined to keep rather than sell, although if prices continue to rise (property bubble starting?) I'll be very tempted to sell.


Advice, corrections or thoughts appreciated.

Take a look My 2nd Home Malaysia they are offering some good incentives and maybe cash in on one of your current properties

I can appreciate the arguments for diversifying outside Hong kong, but I can also see difficulties with the current weakness of the HK/US$.

how about re-mortgaging one of them to allow yourself more liquid cash to invest in more property or elsewhere? the banks would be more than happy to do it right now and if you have existing tenancies then I assume you wouldn't be over-exposing yourself to risk.


otherwise just hang on to them - the yield is doing you a favour no doubt and long-term you will never lose int his town unless you're forced to sell

Given your senario, i would never sell. It will become my income for life..... an annuity by itself.... for my retirement.


However, I understand that property here are on 50 yrs leasehold or something. Not sure if it will fetch any value in it's later years.