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Just sold my 377ft apartment for $585000

by derekwong28
15 replies
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I just sold my 377ft one bedroom apartment for $585K, and this is in a lower middle class area well outside the city center. A similar apartment in a good area would cost more than double that at well over a million dollars. This is how insane the housing market is here at the moment. My apartment was actually sold only 8 days after being listed.

This is bitter sweet moment for me as I never intended to sell it. It was used as my office and storeroom. But I had terrible year beset with business and personal problems. So this is basically a forced sale. Hopefully this will give some breathing space to see whether I could revive my business or not. If not, I may have a get a part time job although that may not be easy.

I considered renting it out but my wife was totally against it. She has bad memories of previous property bubbles. When the last bubble burst, house prices actually went down by a whopping 70%. Hong Kong has the highest property prices in the world but some of the lowest salaries in the developed world. This is why so many young people fell so hopeless. The high prices are already bad, but the banks demand a down payment of 30%.
  • Profile picture of the author TLTheLiberator
    Originally Posted by derekwong28 View Post

    I just sold my 377ft one bedroom apartment for $585K, and this is in a lower middle class area well outside the city center. A similar apartment in a good area would cost more than double that at well over a million dollars. This is how insane the housing market is here at the moment. My apartment was actually sold only 8 days after being listed.

    This is bitter sweet moment for me as I never intended to sell it. It was used as my office and storeroom. But I had terrible year beset with business and personal problems. So this is basically a forced sale. Hopefully this will give some breathing space to see whether I could revive my business or not. If not, I may have a get a part time job although that may not be easy.

    I considered renting it out but my wife was totally against it. She has bad memories of previous property bubbles. When the last bubble burst, house prices actually went down by a whopping 70%. Hong Kong has the highest property prices in the world but some of the lowest salaries in the developed world. This is why so many young people fell so hopeless. The high prices are already bad, but the banks demand a down payment of 30%.
    Wow...

    Best of luck to you in all your endeavors.
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  • Profile picture of the author seasoned
    This really should make people think. I have heard of similar things happening in mumbai.

    Steve
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    • Profile picture of the author Kay King
      derek -

      Sorry to hear you are having a rough year. The housing prices there blow my mind. Amazing it sold so quickly at that price - wow.
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    • Profile picture of the author derekwong28
      Originally Posted by seasoned View Post

      This really should make people think. I have heard of similar things happening in mumbai.

      Steve
      This has everything to do with the US Federal Reserve, their zero interest rates and quantitative easing policies. The Hong Kong dollar is tied to the US dollar and is thus essentially the US dollar. We have mortgage rates barely above 2% for years. It seems that the Fed is determined to bring US house prices well above pre-2008 levels. You are seeing the same sort of thing happening in other places such as New York, London, Singapore and Sydney.

      At least I am selling it when the prices are at an all time high. The Hong Kong government had introduced punitive taxes that effective barred all speculators and foreign buyers. There is even a punitive tax on buying a second property. Still the prices kept on going on. It seems that people are scared into buying because they are afraid that prices would go up further.

      The buyers are a couple of newlyweds who seemed barely able to afford it. They even asked us to leave our old electric appliances behind. I hope I haven't handed them a ticking time bomb.
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      • Profile picture of the author Alexa Smith
        Banned
        Wow, property prices there really are high!

        $585,000 is £363,000 at today's rate, and even in London that money will buy you a tiny 400sq.ft. 1-bedroomed apartment in a pretty upmarket, smart, central-ish area like Chelsea or Kensington.

        Well, certainly sounds like you've sold easily and at the top of the market, anyway? And good luck and good wishes for a very successful rest-of-the-year.

        .
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      • Profile picture of the author ForumGuru
        Banned
        Originally Posted by derekwong28 View Post

        I just sold my 377ft one bedroom apartment for $585K, and this is in a lower middle class area well outside the city center.
        Originally Posted by derekwong28 View Post

        This has everything to do with the US Federal Reserve, their zero interest rates and quantitative easing policies. The Hong Kong dollar is tied to the US dollar and is thus essentially the US dollar. We have mortgage rates barely above 2% for years. It seems that the Fed is determined to bring US house prices well above pre-2008 levels. You are seeing the same sort of thing happening in other places such as New York, London, Singapore and Sydney.
        In most US states 585K will buy you a very, very nice home. In-fact my buddy just paid $425K for an awesome 5 bedroom with a large pool, Jacuzzi, full outdoor kitchen, killer master BR, and another BR that is full blown suite for $425K in Key West, Florida where housing prices ain't cheap. I have not asked him the exact number, but I am sure the home is well over 3000 sq. ft.

        You will never get me to pay NY prices, not in a million years.

        525K in my city of CR, Iowa would purchase you one of the best homes in the entire city. In-fact all over Iowa (and many other states) $150-$300K will get you a pretty nice place with 1300-2800 sq. ft or more, especially in the Midwest.

        Best of luck...

        -don
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        • Profile picture of the author joe golfer
          Originally Posted by ForumGuru View Post

          In most US states 585K will buy you a very, very nice home. In-fact my buddy just paid $425K for an awesome 5 bedroom with a large pool, Jacuzzi, full outdoor kitchen, killer master BR, and another BR that is full blown suite for $425K in Key West, Florida where hosing prices ain't cheap. I have not asked him the exact number, but I am sure the home is well over 3000 sq. ft.

          You will never get me to pay NY prices, not in a million years.

          525K in my city of CR, Iowa would purchase you one of the best homes in the entire city. In-fact all over Iowa (and many other states) $150-$300K will get you a pretty nice place with 1300-2800 sq. ft or more, especially in the Midwest.

          Best of luck...

          -don
          True. I just read about a Gilded age mansion with large property and coach house that was asking only $800K in Detroit. It needed some repairs, but still. Wowsers. That would get you a starter home in SF or LA if you are lucky.

          Check out this one that just sold for $740K.
          http://detroit.curbed.com/archives/2...for-739900.php

          This has 15 bedrooms and 17 bathrooms and sold for only $1.6mil. Crazy.
          http://detroit.curbed.com/archives/2...ls-for-16m.php
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  • Profile picture of the author WalkingCarpet
    Banned
    I saw it as 'I considered renting out my wife'. lol.
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  • Profile picture of the author Dennis Gaskill
    Sorry to hear you've had business problems, Derek. That's pretty wide-spread these days.

    $585k would be a small fortune in some places. Haven't considered moving to a more cost friendly area? It could give you a lot more freedom and flexibility.
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  • Profile picture of the author ForumGuru
    Banned
    US Housing Prices:



    http://www.realestateabc.com/outlook/overall.htm

    According the National Association of Home Builders the average size of a home being built in the US is 2700 square feet. Zillo says housing in the US is running running $120 per square foot (median).



    http://www.zillow.com/home-values/

    Cheers

    -don
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  • Profile picture of the author yukon
    Banned
    $500K for +300 sq/ft is a ripoff.

    I have a shed in the backyard bigger than that & probably a better view considering I'm in the foothills of the mountains with no neighbors on 3 sides of the property. Trees & pasture as far as you can see.

    There's a nice piece of wooded land down the road for $120K & that's right at 100 acres.
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    • Profile picture of the author seasoned
      Originally Posted by yukon View Post

      $500K for +300 sq/ft is a ripoff.

      I have a shed in the backyard bigger than that & probably a better view considering I'm in the foothills of the mountains with no neighbors on 3 sides of the property. Trees & pasture as far as you can see.

      There's a nice piece of wooded land down the road for $120K & that's right at 100 acres.
      It is a DIFFERENT culture, so they expect less, and have more to spend. So prices will NATURALLY be higher than an American and many europeans would like. But the crazy low rates and long terms along with the R/E myth have cuased prices to SKYROCKET. BTW your shed isn't built as well or with all the amenities. Look atMY property, for example, just the property adds 33% to price of my property. 75% of that increase is "improvements" to allow electricity, water, sewer, etc.... And laying a foundation can be EXPENSIVE.

      Derek,

      People are betting that the FED will soon stop, or curtail noticeably. Eventually, the rates WILL go up. The time for them to go up was in the mid 2000s or there abouts. NOW, they must NOT go up for maybe a DECADE, but you can BET they will. It is a TIGHTROPE! They must raise them in a REAL strong economy, when they can be tolerated. WHY? Because they need to be high when the economy drops to help support the value. Raising them in a WEAK economy can lead to unemployment, foreclosures, etc... ALAS, that is probably EXACTLY what they will do. ALSO, high rates allow you to help when things get bad.

      So you probably DID sell on a high.

      Steve
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      • Profile picture of the author AprilCT
        I do hope your life gets much better for you and your family.

        377 feet is awfully little for that amount of cash. You might just look back in the next year or so and be very glad you sold.

        The savings interest rates in the US are totally horrible and not worthwhile for quite a long time now. I'm truly hoping they get to go up some soon. Of course, that means that borrowing rates will go up, and I doubt the stock market will stay as high as it has been. There's going to be a lot going on here if those rates begin to change. We can only hope our economy starts to really pick up so all changes are worthwhile.

        Take a deep breath and perhaps look at other types of business you could do without the necessity of a real estate investment. If you are only looking to work part-time, what kind of work can you do from home using a computer and what you already know or can learn quick enough? Tutoring, ghostwriting, Kindle, selling on line.... There are loads of possibilities.

        I wish you the best.
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  • Profile picture of the author rondo
    That's crazy, but I'm glad you sold out near the top.

    Prices are going nuts here too, and now they are building a lot of small 'micro' apartments in Melbourne. As if Australia has a shortage of space!

    Andrew
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  • Profile picture of the author HeySal
    Take that money and get the hell out of there, Derek. Your field should let you into a great job anywhere in the world. Go live where there's room to breath and prices that aren't so ridiculous.
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