Saturday, December 25, 2010

Hong Kong vs New York Property

Hong Kong vs New York property

Price appreciation:
New York is a stable, 10% per year average appreciation while Hong Kong can go up or down 40% a year.  New York is safe, Hong Kong provides more adrenalin.  Don't buy in New York and expect to flip in 2 years.  One should have expectation to hold at least 3-5 years.

Diversity of Demand:
New York property is driven by local and international demand which includes Europe, Canada, Mexico, Russia, China/Hong Kong, India.  Hong Kong property is driven largely by China's high net worth individuals which means prices can be quite volatile since it's very dependent on one country.

Hong Kong is obviously lower, otherwise HK would not be HK in the first place.

Mortgage rates:
New York can be fixed for 30 years.  Hong Kong is variable.

Transaction fees:
New York property fees are back loaded, ie most fees at point of selling.  But for Hong Kong it's front loaded, most fees at point of buying.  Broker fees in New York paid by seller (brokers representing buyer with fiduciary to buyer will get fees from seller's side).

Visit us at Castle Avenue Partners - Manhattan investment properties

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