tag:blogger.com,1999:blog-25714039.post114908646427970441..comments2023-10-26T00:17:28.411+08:00Comments on A Private Portfolio: Are we frugal?traineeinvestorhttp://www.blogger.com/profile/05179861120801348035noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-25714039.post-74624099375469309742007-02-15T20:22:00.000+08:002007-02-15T20:22:00.000+08:00Thanks for the commnent.In answer to your query, I...Thanks for the commnent.<BR/><BR/>In answer to your query, I view stocks and properties as each having their advantages and their disadvantages compared to each other.<BR/><BR/>The primary advantage of property is that it is easy to gear against and the interest rates are lower than you will pay on a share margin loan. In effect you can enhance returns through gearing.<BR/><BR/>There are some disdvantages: transaction costs, depreciation and tax among them. It is for these reasons (and others) that I am building a portfolio that comprises a mix of asset classes.<BR/><BR/>On fixed interest rates, when I last checked you could get fixed rate products up to about five years - but the cost was much much more expensive than the floating rate. <BR/><BR/>One thing I did learn about mortgage loans is that it really pays to shop around for the best deal each time.traineeinvestorhttps://www.blogger.com/profile/05179861120801348035noreply@blogger.comtag:blogger.com,1999:blog-25714039.post-31715785140033829912007-02-13T16:53:00.000+08:002007-02-13T16:53:00.000+08:00Hi there,Really interesting site. It's nice to se...Hi there,<BR/><BR/>Really interesting site. It's nice to see there are others out there trying to do the same thing.<BR/><BR/>I'm relatively new to Hong Kong (been here for one year) and have been thinking about purchasing a property. I wanted to ask you some questions if you don't mind?<BR/><BR/>I just found out that you have to pay profit tax on your property when you sell. This seems to put property at a big disadvantage to shares? What are your thoughts?<BR/><BR/>Similarly you have to pay tax on rent, but not on dividends.<BR/><BR/>Also, I'm wondering if there are any fixed rate (like 5-10 year) mortgages available in order to protect yourself from large upswings in the mortgage rate?<BR/><BR/>Thanks and keep adding to your interesting site!Anonymousnoreply@blogger.com