“其實在金融海嘯以來，美國人一直有買樓，尤其是一些專業人士，而大家從新聞亦知道，美國按揭利率只是1%至2%之間，所以需求一直不是問題。”

我的美国朋友期间买楼按揭利率是 3-4%左右，从来没有1%-2%，可能搞错了吧。

To compare the real estates in HK and the USA, it is not quite appropriate in terms of population density, city planning, and culture...

Everyone should know that we need to comment on the same ground from city to city, GDP per head, enconomic structures, currencies, property tax, designs on transportation, culture as well. 

Chinese still love houses.

Another funny article read today wrote by the Prof. Wong of Finance from the Chinese University of H.K., he's living somewhere penthhouse in Olympic that costs 20something millions & rent 43K, he told his father & family to sell all their houses & say he has a point buying is too crazy at this point.

Based on the calculation, 43K x12 x 20yrs(rent)=$10,320,000.00 but the market price is now over 20 Millions.  Yup! Maybe it's not that attractive to buy that kind of houses with such low rental return, another point is:I bet he doesn't have the downpayment for over 10 millions something.  In other words, my advice for Prof. Wong is he can't afford to stay there if he can only rent but can't afford to buy.  Find somewhere else before you retire......

To: 7 & 8,

我有看這段新聞，現在打算寫一篇「回報最低風險最高」的產品，明天見Blog。

Thanks!

终于有大炒家说出董特首年代, 楼价大跌的一个原因, 文中提到的银行, 除了多收利息, 同时帮大炒家逼97接货的散户货变成银主盆, 然后慢慢挑最好的, 在曾特首官商勾结的年代,享受财富转移.

不过, 风水轮流转, CY上台, 新的一轮财富转移游戏又开始, 看这里的文章, 很多香港炒家和炒楼高官都不相信楼市有大调整, 有这么大的利益在眼前, 看看这一次是谁先出手.

仲有錢落袋, 夠利夠本, 如此生意, 去邊度搵?

你可以買幾層樓為保收入, 只會炒高!!! 超人至LIKE!!! 您那高貴的幾層樓都是留給自己學會 "分身" 住吧^^

Few comments here:

- US people normally use fixed rate mortgages (30y etc). the rate I see in Freedie Mac's web page is 3.7% for 30y ARM and for 1y ARM..... 2.74%. Not sure if the 1%-2% is floating rate and since the rate is so low, the loan is subjected to margin call.

- as for the professor's rental: "1900呎複式單位為例，市值2000多萬元，月租約4.3萬元"

so a "複式單位" in city just sold for 10k / sq feet? no way. I am happy to pay 20% on top of that to buy that apartment but I am sure somebody else will pay more.

月租約4.3萬 = $22 / square feet. again, I am happy to pay 20% premium to rent that.

<more likely to be a high-floor rather than duplex>

- over long run, whether such rent over purchase strategy works depends on inflation I belive

Agree with NO. 11, Professor WOng may be frog under the well or a book worm !!

 He did not know some important details.

 I just take a real example,

 I bought an apartment somewhere in NT end of 2009, just 1.2 million, and rent is 5000 HK$,  at that time, the interest rate is H+0.65%, I paid only 300,000 as 1st payment.

 What is the capital return rate ?

 5000 - 500(management fee) - 150 (land rent) -700 (interest rate from bank)

 0 (property tax, sorry I had several children so I can put into personal income) = 3650 per month income

  Payback return = 3650x12(month)/300,000 x 100 = 14.6 % close to 15 % !!! Of course not 1% ...

  You may ask When the interest rates go up , What happens 2 years later ??

 Ans : OVer the past two years, I had saved another 200,000, I can save another 200K in next 2 years, IF the interest rates go up, do one thing, return most of the loans to the bank immediately!

  What happens when interest go up ?? After two years, I give you a government official to be !!

To 17/F HK guy,

I think you are not really good at finance. You compare the organge and apple.

You use the leverage and so must get a higher return than Wong's example, just another example, if you borrow 100% (the rest can be borrowed by relatives, parents etc), then you can get can get infinity return coz your capital is zero and the return is positive. What a good investment!!! Infinity return. Please, there is no free lunch, you get higher return simply coz you take more risks by using leverage, 利大本無歸. Like Buffet said, you can only know who dosen't wear swimming suite after the tide goes. I believe the tide will go very soon, good luck to those use high leverage.

PS. All my properties are fully paid already.

You must be very old school. In the investment field, noone will use the ROE concept as all we know this is misleading by the leverage.

All inevestment banker or analyst look at ROA (return on asset), that's exactly what Dr. wong's calculated. Please update your investment knowledge, or you really exactly that frog.

If I and you buy your flat together, and we contribute 50/50, but I don't borrow and you borrow accroding to what you said, you will get higher return on capital than me coz all my share is capital.

Can I say that your investment is better than me? Come on, our investment is the same, you get 50% rental income and so do I. Then you know why you get higher return? Think.

其實王澤基係明報呢段嘢旁邊，仲有一段平衡報導，呢篇拒就話女仔如要個老公聽聽話話，愛你一世，就要夾個老公去買樓，咁為左供樓，個麻甩佬就會好唔得閒，就會生生性性！

唔怪之得咁多女人要男人買樓先肯嫁啦，原來如此！！

Hi Mr Tong,

Your article is always a delightful read as it is both informative and interesting.  I am confused with one of the points you have made today and I wonder if you can shed some light on my query as I fail to understand why "若果樓價不跌，他們(銀行家)便沒有利潤".

Many thanks in advance.

Tony