Hello Elmat, the Peak apartment you referenced, while valued at USD 16 mil, is correctly priced, because:
(i) it ought to yield a rental return of 3.5-4.5%
(ii) the tenants in HK pay property tax, maintenance fee, and non-structural repairs, all on top of the indicated contractual rental price, so net take is just about gross receipt
(iii) plenty of rental takers backed by very well to do and generous employers
(iv) lots of buyers backed by tax-free overseas sourced income
Here are some sample properties for rent on the peak landfortune.com and plenty of bargains at between MONTHLY rent USD 41k and 6k
Lease terms are for 2 years initially, and 12 months extensions thereafter. Demand for rental increase to market rate are straightforward to challenge at the officialdom tribunal but difficult to win.
About the features of the real estate - pretty basic, in that the view is good, of course; the neighbors' wives are cute, naturally; and the husbands are mostly away on business, conveniently.
So you see, there is quite a gap between communist-infested Money Rock Hong Kong and Economic Freedom Merely Mentioned New Zealand in so far as what folks are willing to pay to live in, per Maurice's residency for sale program, because HK Rocks. |
