When even Hong Kong’s super wealthy opt to rent, something is not right

[yuiyoshida]

Recently revealed decision by local movie stars highlights need to urgently tackle one of the city’s most pressing issues

Julian Cheung Chi-lam and Anita Yuen Wing-yi are household names in Hong Kong and on the mainland for the many impressive roles they have played in films and TV dramas, and also because they are seen as a happily married, model couple in showbiz circles.

But there’s one thing about this rich and famous couple that you might not know, something I was not aware of until last week: they decided years ago never to buy property in Hong Kong. The reason was simple. Prices were outrageously high and too unreasonable.

At a Mid-Autumn Festival gathering, as some of my friends were sharing viral online messages, one showed us a story from a mainland website prompted by the couple’s recent appearance on a reality show for a local TV station.

“Do you know Cheung and Yuen have a strange habit?” the headline asked. The story went on to explain the “strange habit”: their constant house moving by renting luxury apartments one after another every few years instead of buying a permanent home. Cheung once reportedly remarked: “With the amount I need to pay for a house [in Hong Kong], I can rent till I’m over 130 years old.”

Of course, the couple earn tens of millions of dollars a year and could buy any luxury home they like, and the homes they rent are far from affordable for the average Hongkonger. But their preference to rent reflects in a sense the absurdity of Hong Kong’s housing situation.

more..
http://www.scmp.com/comment/insight-opinion/article/2020388/when-even-hong-kongs-super-wealthy-opt-rent-something-not

[Nye Bevan]

1. Absolutely nothing wrong with renting.

The romantic ideal of the "American dream" of homeownership is somewhat irrational.

[edhopper]

2. In parts of New York City

when you compare what you can rent for $5000 to $8000 a month vs what a million dollar for an aprtment will get you, renting can be better.

[cagefreesoylentgreen]

3. It's Hong Kong

Even grave plots are for rent.

http://content.time.com/time/world/article/0,8599,1892485,00.html

[whatthehey]

4. Fine for superheated markets

But in flyover country that's nuts. I own several 2BR houses in decent shape in safe but decidedly blue collar neighborhoods. None cost more than 40K and they all have several eager renters linining up to pay 500-600/mo when they could be bought for 280 0% down PITI. In my own neighborhood there's a house for sale or rent with a similar mortgage of 1555 and a rent of 2200. And then you have to consider tax deductions.

[sarcasmo]

5. Give me my 50,000 dollar cabin in northern Wisconsin any day.