HK a good place to invest as an expat aussie living there?

[sonic]

i've moved over to HK for over a year now and just bought an apartment (damn space is expensive i paid $500k AUD for a 656 square foot apartment).

no tax on property here i'm thinking if i hold for 20 years and sell (sure HK prop is volatile but i'm playing the yield at the moment 4.5% yield and 2.35% financing cost at the moment with low US interest rates).

sure this won't last forever but looking at economic fundamentals in oz giving high debt ratios and high credit and 12 years growth i wouldn't want to be investing in aussie propertying for the next 10 years (i currently hold two small apartments as well dammit there).

assuming same growth rate or even hk slightly less after 20 years u will still come out on top no since there is no CGT in HK. i sill have to pay aussie tax even if i am a non resident for aussie property. tax exemption only relates to non residential property assets i.e. shares if i sell aussie shares while here i pay no tax.

thoughts?

 

[grossreal]

hi sonic
I am looking at co investing with a hk national at the moment and yes it is for me a good place to invest the only issue is that you need to know what and where hence the co invest I use equity here and he invests there.
I am more seen as the a lender then a investor.
but the place for me is a good place to look at

 

[eggnog]

hey sonic. which area did you buy and on which island. hope its not in one of those ghetto slum govt houseing buildings.

 

[Aaron Sice]

How Big Is A Square Foot?

 

[LynnH]

12 inches x 12 inches, BC! And 656 sq ft is 6.56 squares!

But, seriously, a square foot is roughly 30 cm x 30 cm, so 900 sq cm.

Cheers
LynnH

 

[sonic]

hey sonic. which area did you buy and on which island. hope its not in one of those ghetto slum govt houseing buildings.

HK island i kinda of only know the expatting area its slightly out of it 10 mins walk to Soho in an area called Sai Ying Pun. Its @ HK Island.

 

[willy008]

hey sonic. which area did you buy and on which island. hope its not in one of those ghetto slum govt houseing buildings.

I just got back from there last week and after reading that I was thinking the same

 

[Witzl]

i travel to HK a couple of times a year, and my workmate who travels with me used to live there.... apparently the growth in HK has been VERY strong for many years, and doesnt look to be slowing down as the economy there is growing stronger and stronger.

.... I had thought about doing it myself in the future, as an "alternative" investment

 

[newoz]

I have a contact in hk in real estate. she works with expats and corporate clients mainly. anyone interested, drop me a message.

 

[chan]

Oh u live in Sai Ying Pun. do u work in Central? the properties market picked up a lot in the last couple years. the last peak was in 1997 and the bottom was in 2003.

as far as i know there is not much salary rise since 1997. the upper market properties do really well in recent years due to shortage. more rich people get richer...

 

[ggumpshots]

What capital growth figures do you have for Hong kong?

What body corp rates?
If you didn't live there would you still have proceeded as you have?
It sounds like the low interest loan was the kicker for you.

 

[chan]

What capital growth figures do you have for Hong kong?

What body corp rates?
If you didn't live there would you still have proceeded as you have?
It sounds like the low interest loan was the kicker for you.

for CG, it really depends on where u r buying. body corp rates depends on what facility the building offer. generally the newer building offers club house service will charge higher. maybe a couple thousands hk per month...

Sai Ying Pun is an older area so the body corp should be much lower.

 

[ggumpshots]

for CG, it really depends on where u r buying. body corp rates depends on what facility the building offer. generally the newer building offers club house service will charge higher. maybe a couple thousands hk per month...

Sai Ying Pun is an older area so the body corp should be much lower.

Based on that data I shouldn't invest. Thanks

 

[ianvestor]

12 inches x 12 inches, BC! And 656 sq ft is 6.56 squares!

But, seriously, a square foot is roughly 30 cm x 30 cm, so 900 sq cm.

Cheers
LynnH

To save anyone else the trouble... 6.56 squares x 9.3 = 61 sqm.

 

[BV]

Hong Kong Property Market to Weaken on Slower Growth

http://hk.news.yahoo.com/article/080815/10/7pqj.html

On a monthly basis house prices have been increasing consistently since April. The latest increase of 0.7% in June brought the annual rate of decline down to 1.7%, which was the slowest since May 2007.

 

[chan]

Based on that data I shouldn't invest. Thanks

it depends on what u r after. if u time the market right, u can get rich quick. the price is roller coaster. for example, when SAR hits asia in 2003, the price tumbles really really bad. if u bought at the time and sell in 2004, u could earn 100% in just 1 year. another thing does happen very often in Australia is negative interest rate. HK dollar is a linked currency (which sonic has mentioned). interest rate in HK follow US but the CPI is not. when the CPI is high and the rate is low, the price usually goes up. it happened last year. it is a very very dynamic market. if u know what u r doing u can earn big bucks quick, if not u r playing with fire and get burnt.

 

[ggumpshots]

Chan ,
the problem with you post is that you are deciding what is good bad, quick or roller coaster.

What you think is good or bad is for me to determine , not you.
This is your second opportunity to present data ,which you haven't.

Based on your view only,I have no numerical data , only wild generalizations.
Even if I could make 100% in 1 year, how typical was that.
The answer is not relevant unless you have independent data which I can review.
Your post , otherwise sounds like a sales push . Just supply the data where you are getting all your opinions please.

 

[chan]

Chan ,
the problem with you post is that you are deciding what is good bad, quick or roller coaster.

What you think is good or bad is for me to determine , not you.
This is your second opportunity to present data ,which you haven't.

Based on your view only,I have no numerical data , only wild generalizations.
Even if I could make 100% in 1 year, how typical was that.
The answer is not relevant unless you have independent data which I can review.
Your post , otherwise sounds like a sales push . Just supply the data where you are getting all your opinions please.

sorry ggumpshots, i have no intention to argue or hoping anyone to believe in what i believe. i am not a REA nor intending to sell anything to anyone. what i intend to point out is HK properties market is very different comparing to Australia. i dont have data for u as most reports i read r in Chinese. i dont have time today but i can scan u some tables and graphs from a book if u want (when i am free).