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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (32111)	4/2/2008 5:00:48 AM
From: TobagoJack	Read Replies (1) \| Respond to of 219502

sounds like going up fm 10% yield would be difficult (either purchase cost drop, or rent increase) when mortgage is already high at 10% and can go down a lot easier than up; but yield going down also not that easy (either rent drop upon rent renewal or price increase upon sale) when mortgage is at 10%. bottom line, indeterminant. hk mortgage rate on personal (as opposed to corporate) basis (with 30-50% deposit, loan to value 'margin call', and lender recourse to any and all of borrower asset, is 3.50%, adjustable monthly, tagged to usd short rate (3.75% on corporate basis). yield is 3.6-4.2%. the idea is then to buy cheap and rent expensive, in improving neighborhoods of substantial upside, ideally at price that approximate construction cash cost, and skip 100% of the outrageously high land value.