A move now looks likely within seven years—should I still buy in Hong Kong?

G

gardensAndCorner

Buyer
Established
A decision may be needed soon, and my likely holding period is only five to seven years. That makes the usual equity argument less persuasive because flexibility may be worth more than ownership over such a short span.

A comparable Hong Kong apartment costs about HK$6,084,000. Mortgage payments, tax, maintenance and association dues would already be higher than my rent, before allowing for rising building fees or energy use. I also would not assume that keeping it as a rental would be effortless if I moved.

How would you compare renting with the amount likely to remain after buying, carrying and eventually reselling the apartment? My main concerns are weak resale liquidity, inadequate building reserves and the management burden if a sale is delayed.
 
One clarification: I’m not assuming I could simply keep it as an effortless rental after moving. That would introduce tenant demand, vacancy periods and management work. My bigger concern is paying a premium to own now, then discovering that the shared-building reserves are inadequate just as I need to sell.
 
With a five-to-seven-year horizon, I would work backwards from the sale rather than forwards from the mortgage. Estimate what you would retain after buying, carrying and eventually selling, then compare that with rent over the same period and the value of keeping your deposit liquid. Equity is not automatically a gain if transaction costs, interest and building expenses consume it.
 
What do you know about the particular building? The current monthly fee alone is not enough. I’d want to understand its maintenance intensity, recent fee changes, reserve position and any major shared works being discussed. Also clarify what the building insurance covers, because an apparent saving can disappear if owners face additional exposure.
 
I agree about investigating the building, but I wouldn’t reject buying solely because the monthly ownership cost exceeds rent. Part of the payment changes your equity position, while rent does not. The real caveat is whether a comparable buyer will want this apartment when Diego needs to leave. Building condition, energy use and recurring fees can affect resale liquidity as much as the apartment itself.

If renting it out later is the fallback, test that separately. Expected tenant demand is not the same thing as guaranteed occupancy, and remote management adds cost and workload.
 
Make three versions of the five-to-seven-year calculation: stable fees, higher fees or major works, and an earlier-than-planned move. For each, include purchase and sale costs, mortgage interest, maintenance, insurance exposure and a realistic sale period. Then run the rental fallback with vacancy and management included.

Before deciding, ask for whatever building financial records, fee history and planned-work information are available. If the purchase only looks attractive under the most favorable resale and fee assumptions, renting is buying flexibility rather than merely “losing” rent.
 
You must log in or register to reply here.
Back
Top