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

To: John Vosilla who wrote (135909)	10/5/2017 7:14:28 PM
From: TobagoJack	Read Replies (1) \| Respond to of 218430

re <<Sounds like Cisco 2000 or Amazon 2017 type yields.. TIme to cash out the chips or continue to control the asset but pull equity out deploy into something else since RE never goes down?>> ... yes and no, because local HK and mainland China-owned banks pay interest for HK$ deposit at 10X the rate of foreign banks (HSBC, Standard Chartered, Citi, etc) - 0.01% per annum vs 0.001% per annum, meaning takes HK$ 1B (US$ 129M) on deposit to assure a family can purchase one (1) big mac happy meal for feeding per day for the entire family. ... under the circumstances, 1.6% is an extremely good yield. ~70% of HK real estate is owned debt-free. ... low holding cost given minuscule property tax load, and no cap gains on eventual sales. so i understand. i also understand that should one sell, it would be unlikely that one can buy back at meaningfully lower cost especially after accounting for interim opportunity cost. this is the evil tee-ed up by the FED. and yes, imagine what would happen when the FED is no longer in control or w/ strong influence on cost of funding. all very exciting. watch & brief.