Hong Kong Part 1: Time is Money and Money is Time
My family and I have been spending the past few weeks in Hong Kong. It’s our annual trek to this side of the world to manage some business and to also catch up with family and old friends from my wife’s and my Chinese language student days.
Over the next few posts I will have a miniseries on what the Vancouver real estate market can learn from a Hong Kong.
Part 1: Time is Money and Money is Time
Hong Kong real estate never fails to impress me. More than it being a financial center that houses some of the priciest real estate in the world, what is notable is the local people’s ability to treat real estate simply as a commodity. The average Hong Kong person understands that while they may have loved the home that they have put up for sale, being emotionally attached to the property and over evaluating it for sentimental reasons will not gain them anything in the bank.
Having assets stuck in a listing that is growing stale because the sellers insist that they “can’t just give it away” will ultimately result in long term opportunity costs/loss. As time is money and money is time, Hong Kongers know that it is better to let their properties sell quickly. With a timely sale, the cash is immediately free to put into the next pending investment- be that in stocks, other real estate, or even business venture, etc. If there is any “strategy” in being a winner in the real estate market, it is being able to detach yourself emotionally from your property and viewing real estate as simply a vehicle to make your money work for you.