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That's China. Hong Kong is a different jurisdiction. They even have different flags. How easy is it to invest there? Very... you can do it tomorrow if you want. Don't even need any approvals. As usual, research is the key. Can't just rely on every major newspaper headline

http://news.domain.com.au/domain/real-estate-news/property-investors-on-top-of-the-world-20100618-ykbs.html 10 seconds typing into Google - first hit ^_^ You wouldn't think an Asia-driven boom would have Australia growing ahead of the drivers in Asia...

Sure Bel Air No 8 2003 - HK$4000/sq ft Today - $20,000/sq ft ^_^ I'm sure you've read the top performers in the world recently were: 1. China 2. Hong Kong 3. Singapore 4. Australia

Absolutely. That's why I will invest there

Let's start talking about investment in Hong Kong. Interest Rate: 1.3% Yield: 5% Gearing: 90% Return on Equity: ~50% I make all my money back in 2 years. Done

Well the reason I was only talking about cashflow was because this is what this thread was about. But perhaps more importantly, cashflow has certainty. Not sure if you can bank on cap growth to help you deliver your ROE, because as much as capital value can go up, it can also go down...

Yep. However I was thinking of generating the 7% off just cashflow, not including cap growth. Not saying this is my strategy, but if your focus is on cashflow (as this thread is about), I'd want a 7% ROE to match my term deposit.

Only if your return on asset is greater than your cost of leverage. Otherwise, the higher the leverage, the lower the return on equity.

All I'm trying to say is that the important criteria is ROE, and not gearing (while you seem to think I am having a go at people with low gearing). Low gearing is fine as long as your ROE is high... if not, it's a dud of an investment and there's no two ways about it at least as far as...

I think you're not following what I'm saying. Basically all I'm saying is I consider 7% ROE to be decent cashflow for property. So if you want to do 10% gearing, that's fine, as long as the ROE is 7%. Generally speaking ROE gets higher as D/E gets higher provided your ROA is greater than...

Absolutely. People who say they are CF+, but have 50% gearing, are talking cr@p and add nothing to the discussion. You might as well have 0% gearing. I'm sure you'd be even more CF+. What's important is that the net cashflow into your pocket (ie rent less interest less all other expenses) can...

If after paying your expenses + interest, the remaining cashflow does not give you a 7%+ return on equity, then forget it. And of course as mentioned, the place better have the best CG potential too so none of this whoop whoop random place.

Misleading information will financially obliterate you

Big fat beautiful IPs!!!