Want to know the best opportunities for buying property Hong Kong? Here, we will discuss different property market investment tips that will help you to buy property in Hong Kong and earn a financial return.
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Best Opportunities in
Buying Property Hong Kong
On any given day you can read forecasts from
property market is going in, and you’ve probably also
noticed that the forecasts can vary day-by-day and
unsettled by that acquaintance at dinner
who is always so confident about his or
her investments and always seems to
have ingenious schemes that make you
wonder whether you are missing out. You
might find yourself thinking, “I’ve never
guarantee a 5% return, well, that does
seem rather good…” or “Well, Bob does
know a lot about the market, and he says
Ugandan property is set for a boom that
could double prices!”
If you find yourself considering fool-
proof, risk-free, high-return investment
schemes, please count to 10, sit down,
independent financial advisor. Failing to
do so can permanently damage your
Forecasts are wrong almost as
often as they are right.
It’s not that forecasters are wrong because they are pulling numbers out of hats (at least the
more professional ones don’t), but they tend to forecast the future based on how the world
looked in the past. So they might say “As compared to rents, prices are at their lowest level
in 20 years”. Sure, that might mean that prices are set to rise. But then again, rents could
fall, or prices could fall even further to their lowest level in 50 years, or maybe something
important in the economy has changed altogether and prices will never recover (remember
when property in Tokyo was said to be worth more than all of California?).
It’s not surprising that forecasts
are often wrong.
Creative types are working hard to make the past look different from the future. For
instance, AirBnB is lowering prices for short-term real estate rentals all over the world,
policymakers in the UK are trying to knock down the barriers that have historically made
housing so expensive there and techies have transformed what were once easy-going
Californian suburbs into some of the most sought-after real-estate in the world.
Professionals can use forecasts by making
calculated bets across a diversified portfolio of
They get things right a little over half the time, and because their bets are spread out, they aren’t too
badly burned by the plays that go very wrong. Net-net, they achieve returns that are a little above
what they might have otherwise, and that pays for all that effort and risk and all the smart analysts
and researchers they hire.
However, as an individual, it is unlikely that you have the time and resources to build such a
diversified portfolio of holdings and maintain a team of top-tier specialists. So wagering a significant
portion of your assets on someone’s hunch that a certain high-risk market or development looks good
In fact, research has shown that most of your personal investment returns are likely to be explained
by the broad asset classes you invest in (e.g. real estate vs. savings accounts) and what fees and
expenses you incur, rather than by specific trades. So forget the get-rich-quick schemes and focus on
these common-sense tips for successful property market investment.
Investment Tips :
Analyse property like an investment, not a
Sure, that cottage with a thatched roof is beautiful, as is that beachfront bungalow in
Thailand. But what matters to you as an investor are factors like: the price of the
property, the rent it can command, the likelihood it will increase in value, the
likelihood it might stay vacant, how much maintenance it will require, and whether
taxes, expenses and mortgage rates are attractive. At the right price, a cramped flat
in a grim but well-located neighbourhood in a northern UK city might well be more
attractive than a luxury penthouse in London.
Use your common-sense to judge the
market and the property.
Does the town have a strong and diversified economy with lots of company
headquarters, universities, government offices, and so on? Or is it a declining town
with no jobs, and the young are moving away? Is the property close to the right
transport links? Does it fit the neighbourhood and the town, or are you looking at a
large and beautiful house in a second-rate area? Is it really worth 20 years of a
doctor’s wages? Or does your gut tell you that’s not reasonable?
If you are only investing in a single
property, be conservative.
If you have several investment properties, it makes sense to be bold and bet on
riskier opportunities. But if you are investing a significant portion of your assets into a
single piece of real-estate, don’t shoot for the moon. Go for reasonably priced,
convenient property in safe markets that would be attractive to many different types
Shop around and fight hard for the right
price, mortgage and expenses.
That extra 5% on the price, 0.1% on the mortgage rate, or extra 1% on the
management fee will impact your returns for years to come, and once you accept
them, there is no turning back. Think about how hard it was to earn that money and
even if you don’t enjoy it, bargain hard in order to lock in the best returns.
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