If you have been ogling at a home and been dismayed by the price that was quoted, it might be that a lease payment would eat away at your earnings but what about purchase? While paying for a lease is akin to expenditure with no returns, paying a mortgage for a purchase is an investment. Hence, if the lease terms are too steep for you, if the home or apartment is available for sale as well, it might make sense to pitch for a purchase deal.
The lure of high demand properties
Cities like Hong Kong might charge a premium for even small apartment rentals but that is only because of the rise in demand for such space in a city that is inhabited by millions. On the other hand, if you view the exorbitant price of purchase, with a mortgage payment, you would be the proud owner of a property in a city where real estate demand is considerable. In most years, seeing real estate prices going up, you would not have a problem making a sale even if the mortgage is not paid up till then.
Residential and commercial spaces
The lure of apartments does not have to be limited to residential spaces alone. You could also invest in commercial leasing agent services to get yourself a commercial space. Owning a commercial space makes it a lucrative investment as you can easily rent it out and earn a worthwhile income from it. Of course, you could need to pay off the mortgage on such a purchase but you might also be able to profit from the difference. As rental terms include a hike that is annual, you would be gaining rental income that will rise every year, which helps you pay off the mortgage without difficulty.
Get the best advice
While buying always makes sense when it comes to real estate, if you are unsure or new to a city like Hong Kong, it would make sense to consult regional experts. If you are open to lease or purchase of a home or commercial space, it is best to consult with one or more real estate agency service. They will have the local knowhow and be able to advise you on the kind of terms you can expert, interest rates on mortgage loans that become applicable and so forth. Such knowledge is important for making a decision that would not bring you down financially. You can shortlist reputed real estate agencies in Hong Kong through online directories.