A good friend told me that in future, it’s not just office workspace that will be shared.
Even a home of 1,000 sq ft could be shared by three owners with the living room as a common space. I know this is already happening in some countries but I really do wonder how Malaysians will take it currently. Well, we could buy together with our best pals but let’s understand that living together and sharing a common space will need lots of forgiving and forgetting… Hopefully the relationship is strong enough when debates start as to where should the sofa be placed or even what brand and size should the LED TV be since it will be shared.
I could go on but you already get the picture.
By the way, all these will be driven by affordability. It has happened in Hong Kong and it’s no longer just investing in homes. Article in SouthChinaMorningPost.com Within the article, it says that two things are becoming common.
First one is investments into alternative investment classes which could potentially be giving higher returns than traditional real estate.
Second one is the attractiveness of co-living to investors because young people are turning to shared living space in a super expensive city; Hong Kong.
The reason co-living is becoming popular is because the housing options for graduate students are limited and renting a flat in Hong Kong could easily take up about 80 percent of starting salaries of young professionals. The article also revealed that between 2015 and 2020, co-living schemes in the city are estimated to provide over 1,200 beds, with rents ranging from HK$2,800 (US$357) to HK$20,500.
That compares to an average monthly rent of HK$20,000 in the city.
As for alternative investments, it is to buy car parking spaces. The reason? Car ownership in Hong Kong has grown nearly 50 per cent from 409,000 in 2007 to 606,000 in 2017.
But private car parking spaces only increased by 9 per cent from 613,000 to 668,000 in the same period. JLL said that within the last 10 years, car park prices have increased by a compounded annual 16 percent. Full article for reference in SCMP here.
Ladies and gentlemen, this is not a scam.
This kind of returns come from investing into a car park space in Hong Kong. That spot in our high-rise home that we do not think too much about thus far is now a form of investment.
I think it’s important to buy more car park lots when we buy a high-rise unit regardless of whether that development has a walkway to the LRT / MRT station. As for whether it would increase in prices like that of Hong Kong, the answer is a simple, No.
What it will do however is that it will increase the attractiveness of our unit when we intend to sell. Imagine all the other units up for sale comes with one car park while our unit comes with two. The premium in future will definitely be more than the original price we paid. Happy following.
written on 23 Jan 2019
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