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

To: Haim R. Branisteanu who wrote (92026)	6/30/2012 6:19:56 AM
From: TobagoJack	Read Replies (1) \| Respond to of 217917

Yes, r does acknowledge that (a) real estate is local, (b) true supply constraints and genuine demand issues matters, (c) cash flow is a must, and relative to every other cash flow, (d) macro makes a difference, maybe something to do with the nature of money conditions and something else to do with the condition of refugee-dom from tyranny territory. R knows HK quite well, visits often enough, but is not convicted on HK. It is difficult for most outsiders to be convicted about HK. No matter, we locals like it fine, the ups when we are happy and the downs when we must exploit. I personally, along with many in Asia, am a habitual saver denominated in terms of revenue-generating real property, and I effectively add some every 12-18 months, rain or shine, in either actual bricks n mortar, by some club deal, or by substantive renovation of some existing holdings as long as the upgrades can result in higher rental or easier rental. I have never directly sold anything in hong kong and have no plans to do so until I stop buying. The club deals are turned over and done with on 5-7 years cycle. The yield is now low, now around 3% net, and have been for what seems like an eternity, am used to it now; but 3% is very nice when compared to nominal 0% at the bank - am used to the bank deposit rate as well, certainly keeps considerations simple. My simple 'permanent portofolio' is actually quite balanced, between re, metals, cash, and equity, even as the metals and cash slide risk-on / risk-off (do not ask me which is what) at times, and cash and equity go risk-in / risk-out. At extreme opportune juncture that may well arise, I am very willing to dial down metal and cashand lever up real estate for still more real estate. I am not worried about notionally expensive HK real estate tanking. I am concerned that it would never drop. I had always been a buyer of HK real estate the each of the two times it fell 70% since I started hubbing out of here in 1987. I am a conditioned buy-the-dip, and at the correct price I am willing to halve metals and double real estate. Let us pray before we prey.