Shanghai Real Estate Bust

[DanS]

He's talking about a 10% down, 20% loan, 70% loan scenario. I doubt he would have to pay insurance on the 70% loan.

[Urban Ranger]

Originally posted by Tingkai
Haven't decided whether to do it because the cost of housing here is so high. One place I'm looking at, a new flat, is selling for HK$3.5 million, or $450,000 for 600 sq feet.

For people who live outside Hong Kong, you can't use all of this 600 sq feet. Public areas such as the stairwells, the lifts, the lift lobby on your floor, the main entrance foyer, etc. all count. Say there are 4 flats to a floor than you get 25% of all public areas to your "credit." If there is some kind of "club house," etc. a % of that goes towards the 600 sq. feet also.

In the end, you're lucky if you get 70% to use.

[:) Smiley]

Dunno if this is also true in Hong Kong, but in Taiwan you can use the public areas such as stairwells and lobbies for storage, motorcycle parking, etc.

[The Mad Monk]

For Wang Suxian, the tale of two lines illustrates how the bubble has burst.

When home prices were at the tail end of the boom in March, Wang hired two migrant workers to stand in line for a chance to buy units in what the developer said was modeled after an apartment community on New York's Park Avenue.

The workers waited 72 hours, including cold nights, but the 35-year-old was thrilled to come away with two apartments, one for $110,000, about the average price for a new home in Shanghai, and another for $170,000. They were among Wang's four investment properties.

And for a short period, Wang believed she was raking in hundreds of dollars a day for doing nothing, as property prices in the city kept soaring.

But today, prices at the complex have fallen by a third, and the lines of frenzied buyers are gone. Wang is among dozens who are fighting the developer to take the apartments back.

On a recent frosty morning, she stood in a line herself with about 40 other buyers outside the builder's headquarters, demanding that it negotiate a deal to return their money. "This is ridiculous," Wang huffed.

The company, Da Hua Group, invited Wang and other homeowners inside, served them hot tea, then told them to forget it.

Good for them. I don't see why the builder should take a bath to save the stupid speculators.

[C0ckney]

was anyone else disappointed to open this thread and find it wasn't about a kung-fu movie?

[KrazyHorse]

Originally posted by DanS
He's talking about a 10% down, 20% loan, 70% loan scenario. I doubt he would have to pay insurance on the 70% loan.

Ahh.

[The Mad Monk]

No.