Buying in Hong Kong

[geoffw]

This is not true if you keep your funds in Hong Kong. Anyone is allowed to open bank account in Hong Kong, you do not have to be a resident or citizen there.

If you are a resident in Australia for tax purposes, you are required to declare any income from any country. You are breaking the law if you do otherwise- bank accounts or not.

ATO has firm requirements for being a resident for tax purposes. It's not enough to leave the country for 12 months. The last time I looked (that was a while ago) you had to prove that it was your intention to stay away permanently.

 

[Ajax]

Anyone looked at areas in New Territories like Sha Tin or Tai Po (I think this was the place I liked...where KCR from Kowloon emerges from a long tunnel.)

 

[Deltaberry]

This is not true if you keep your funds in Hong Kong. Anyone is allowed to open bank account in Hong Kong, you do not have to be a resident or citizen there.

Not true.

Re opening bank accounts, you'll find you have problems if you're American or Canadian.

Re capital gains tax, try telling the ATO you have a house and have sold it and see what they say. The only reason you're not caught is because HK is one of the 5 OECD countries in the world that currently refuse to cooperate with Australia. The reason they get away with it is because HK is a part of China, and China pays no face to Europe or USA on these matters since their nuclear arsenal is on par, and the latter do not dare to impose trade embargoes.

Look at Switzerland - they've opened up to USA/Europe because they have no power and USA threatened to embargo them. This world is still run on weapons.

 

[Deltaberry]

Anyone looked at areas in New Territories like Sha Tin or Tai Po (I think this was the place I liked...where KCR from Kowloon emerges from a long tunnel.)

Sha Tin is a good buy if you're talking about 第一城.

It's a cheap entry point if you can't afford other things like Telford. What I find a really bad buy is the rubbish tip next to TKO. That's an absolute joke for $7k/sq ft.

Tai Po is touted as the next up and coming Sha Tin. Personally I still think we're 2 decades away for that.

 

[testingw00]

Ever thought of purchasing a property where there has been some kind of unnatural death involved?

http://www.squarefoot.com.hk/haunted/

According to this article, you can pick up property at heavily discounted prices. It may work out well for non-superstitious tenants/owners.

 

[china]

Haunted property

It is a big issue in Hong Kong if a property has had someone die within, especially if there was homicide or suicide involved. Although you may buy the property cheaply you may not be able to rent the property out nor sell the property later. So it may not turn out to be such a bargain after all.

 

[Ajax]

testingww00,

during my 6 month stay in Hong Kong I got an idea of how superstitious some Hong Kong residents are. Big buildings will be built in accordance with a feng shui masters advice. If this means a hole in the middle of a building to let a dragon fly come and go from the sea to a mountain...then so be it. If it means coffin shaped windows to keep the spirits in a nearby cemetry content then so be it. When someone dies it is bad luck for their immediate family to enter another persons house for a period of time. One Chinese friend was afraid of ghosts in the dark and would not go out into total darkness at night. When I visited office buildings I could not find a 13 th floor, 12 and 12A but no 13.

Good luck trying to sell or let out such a property to most locals.

 

[shuggy]

Big buildings will be built in accordance with a feng shui masters advice. If this means a hole in the middle of a building to let a dragon fly come and go from the sea to a mountain...then so be it.

The Repulse Bay building was apparently built with a hole in it to allow the dragon residing in the mountain to have an open view and access to the water.

 

[Deltaberry]

Good luck trying to sell or let out such a property to most locals.

Well the developer/previous owner obviously got lucky selling to the guy who is trying to sell/let it out now

Theory of greater fool.

 

[kristaje]

Bump!

Hi, reading this thread with interest, as we just relocated to HK and just started to look into the property market here.

Did noticed the big swings. Just wonder why/how that could happen in a place with such high population number? Expecially when vacancy rate seems low?

So far I've only been looking around HK Island. I wonder what your thoughts are re. cheaper walk-up places in Sheung Wan area? Some of them are asking around HK$ 3-4 mil mark, and seems like after renovation they could rent at pretty decent price.

Thanks!

 

[charttv]

The Repulse Bay building was apparently built with a hole in it to allow the dragon residing in the mountain to have an open view and access to the water.

so that's what the hole's there for. This building always struck me as kinda odd.

 

[b simpson]

Some of them are asking around HK$ 3-4 mil mark, and seems like after renovation they could rent at pretty decent price.

Thanks!

From what I have heard, internal renovations can be done pretty cheap. A friend of mine lives there used an expat company who used local labor keeping the price down while still dealing with a westerner.

 

[nww]

From what I have heard, internal renovations can be done pretty cheap. A friend of mine lives there used an expat company who used local labor keeping the price down while still dealing with a westerner.

Apartments over there are not what we get here, they can fit a 2 bedroom
apartment into less than one of our 1 bedders over here.
A kitchen is more of a nook with just a sink and small gas top cooker.
Most of the older units were designed around the locals eating out as it
used to be very cheap but things are changing and even eating out is
getting to expensive for locals.
http://www.squarefoot.com.hk/admin/app/webroot/img/Image/p_4026280_6.jpg
http://www.squarefoot.com.hk/property_more_images/4026280/2
Locals seem to want bigger kitchens these days when looking for rentals.

Have just had a friend 12 months ago do up his parents 2 bedder in Sha tin so
will ask him what the total cost was and report back, from memory
complete paint out , new floor tiles throughout and new kitchen/bathrooom. .

 

[Kanyil]

Ever thought of purchasing a property where there has been some kind of unnatural death involved?

Mind you, banks may not lend you money for these sort of properties so you'll have to pony up the entire amount.

A few years ago we looked up the value of that property in Kornhill near Tai Koo (blue chip area) where a woman murdered, chopped up and cooked the remains rotisserie style almost 2 decades ago. Fairly gruesome stuff to be sure but surely old news.

Guess what, HSBC and Hang Seng valued the place at a big fat zero. All properties on the same floor, in the same building and in surrounding buildings with a view to the flat were all reduced as well.

Last I heard the owner rented the place out to some Aussie expat.

 

[kristaje]

b simpson & nww - thanks for the info. wouldn't mind getting a bit more info on the companies (doing the reno) and your friend's experience on this.

Kanyil - yes, heard also that people here is very superstitious. not as gruesome as the rotisserie story below, there was another incident in Taikoo recently where someone jumped from the rooftop and fell on a pedestrian below. both ended-up dead. this also trigger massive correction on the price of that particular building and surrounding. imagine being a landlord who is trying to sell at such a time!


Any thoughts on Sheung Wan? Reason I look at the area is also because the age of building doesn't seem to matter / negatively impact price as much, compared to the newer areas - where prices of buildings above 15yo are discounted quite a bit.

 

[Melbournian]

since you're really in hong kong
you prob can take an insight into what life is acquiring property for people over there.

http://azdrama.net/hk-drama/658-lescargot/

this TVB series depicts the life of a family 7 ppl in a 70+ odd sqm with 1 bathroom.

 

[propertyVIC]

I used to live in HK. There is a real, real shortage of apartments decked out in "western" style, ie has oven and stovetop... and even, shock horror, open plan. I lived first in Happy Vallley and then in Yung Shue Wan, Lamma Island... which I think is a very good long, term investment. For now, every property can only go to 3 floors... but eventually that has to give... and the entry price is low. Yes, by appealing to the expat market, you might limit your market, butI think it's a lucrative niche no matter which bit of HK you're in. If I were doing it, I would make any open planning bits re-closable, eg bifolds on a kitchen servery hatch, as the Chinese market assumes an Amah (servant) is living there and they will not use the kitchen themselves.

 

[shuggy]

b simpson & nww - thanks for the info. wouldn't mind getting a bit more info on the companies (doing the reno) and your friend's experience on this.

Hi kristaja, here's some before and after pics of a reno done on a friend's unit in Discovery Bay. Total cost was HK$280k for 2 BR's @ 650 sq ft, totally gutted with new air cons, floor coverings, window coverings, kitchen, bathroom, HWS and built in's.

Bathroom was completely reconfigured with the original doorway seen on right hand side of living room filled in and new doorway installed on adjacent wall. Mr Wong's his name-- great service, speaks perfect English and very prompt with following up on things.

 

[shuggy]

 

[china]

Hi kristaja, here's some before and after pics of a reno done on a friend's unit in Discovery Bay. Total cost was HK$280k for 2 BR's @ 650 sq ft, totally gutted with new air cons, floor coverings, window coverings, kitchen, bathroom, HWS and built in's.

Bathroom was completely reconfigured with the original doorway seen on right hand side of living room filled in and new doorway installed on adjacent wall. Mr Wong's his name-- great service, speaks perfect English and very prompt with following up on things.

I need to import Mr Wong of Hong Kong to Central Coast, Australia most urgently to do the same for my properties at that price.