Category: The New Savvy

4 Factors To Consider Before Investing In A Rental Property

Costs and Considerations for Rental Property Investments in Hong Kong Investing in a rental property is a great way for you to earn a passive income. This is one of the best examples of a passive income business. Even if you buy the house through a mortgage, you can use the rental income to pay for the monthly amortization of the loan. If you price the lease well, you can probably get some extra money to spend on lifestyle expenses.   According to an article published on CNBC.com, the residential property of Hong Kong may be high at the moment but it will go down in the next two years. In fact, prices of homes have fallen by almost 12% in the last 6 months. This is an indication that it is a great time for preparing to invest your money in a real estate property in Hong Kong. The interest rate is expected to be low and will continue to do so – which adds to the appeal of investing in real estate.   In an article published in the South China Morning Post, it is revealed that the wealth of Hong Kong is tied to real estate and

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The Danger Of Paying Only Your Credit Card Minimum Requirement

The Danger Of Paying Only Your Credit Card Minimum Requirement If you own a credit card, you need to be warned about something: make sure that you will stay clear of the credit card minimum. When you get your monthly billing statement, you will see in there a box labelled minimum payment and beside that, you will see a small amount of money. This amount is usually a lot smaller than the total bill.   That is the amount that you need to stay away from.   Allow me to explain that further: When you use your card, you are not required to pay everything back. You can choose to pay the minimum of the debt – which is just a percentage of what you really owe. This is actually a guide. The credit card minimum is calculated based on the outstanding balance, fees, and interest rates. You have to pay at least this amount to keep yourself away from defaulting on the credit card debt.   While there is nothing wrong about this minimum amount, your choice to stick to this payment method will eventually put you in danger of accumulating a lot of debt. What happens if you

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The Cost of Wedding Banquets Is Soaring in Singapore

This article originally appeared on ValuePenguin If you are planning to get married soon, there’s an uncomfortable fact that you need to be aware of: the cost of a wedding in Singapore is rising extremely quickly. What’s even more interesting is that this is occurring amidst trouble in the overall food and beverage sector in the country and the economy is expected to be “sluggish” in the months ahead. Below, we discuss our findings of collecting and analyzing prices of 47 most well-known wedding banquet venues in Singapore. The Cost of Wedding Banquets Has Risen by Almost 50% Since 2011 By comparing the average price of 47 different banquet venues in 2011, 2015 and 2017, our team at ValuePenguin found that the average price of these 47 locations has risen by 49% from S$1,033 (for a weekend dinner) in 2011 to S$1,536 in 2017. This growth was more than 2x higher than the 22% increase in median income excluding CPF contribution, and almost 6x higher than rate of inflation of 8.6% since 2011. To put that in perspective, that represents around S$46,100 of cost for a banquet with 300 people. Given that the median income excluding CPF contribution was around S$3,600 in 2016, this means that

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Give Yourself Piece of Mind: Getting Life Insurance in Hong Kong

Give Yourself Piece of Mind: Getting Life Insurance in Hong Kong A life insurance is one of the ways you can give yourself peace of mind. It does not matter if you are the sole provider in your family or you and your husband share the financial burden. Your loss will be devastating enough for your family. The financial consequences of your passing will make things much worse.   Although talking about death is an uncomfortable topic, it is one that we need to consider. We are all hurtling towards this event in our life. Some take a long route, while others take the shorter road towards it. Since death is guaranteed to happen any time, we need to make sure that our family will be well provided for when it happens. While the finances will not be enough consolation after you pass away, it will ensure that your family will have something to live on as they grieve.   An insurance is one of the best ways to have peace of mind. That peace comes from the financial protection that you and your family will get once something happens to you. It is all about managing the various risks

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When Is The Right Time To Save For Retirement?

Start Planning Now: Tips for Saving Early for Retirement in Hong Kong A good question: when should you save for retirement? The truth is, this is one of the financial tasks that you need to start working on immediately. You see, when you retire from work, the regular income that supported your lifestyle will stop. How will you finance your basic needs? How will you pay for your food, shelter, clothing, and the various medications that seniors usually require?   This the main reason why you need to save for retirement. Unless you want to keep on working until your drop, this is something that you need to work on as soon as possible.   Why do you need to save for retirement as early as possible According to an article published on the South China Morning Post a lot of locals fear that they will not have sufficient funds for retirement. This is surprising because the article revealed that Hongkongers save the biggest share of their salary for retirement. This is according to a study done in 15 countries. Apparently, the average worker in Hong Kong save 31% of their salary for their twilight years. Despite this effort, a lot

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Seven questions to ask before you invest in that IPO

At some point, your friendly local stockbroker may present you with the opportunity to invest in an IPO (initial public offering). (In an IPO, a company raises capital by selling shares to investors. When you buy a stock in the secondary market, you’re buying it from another investor. In an IPO, the cash you pay goes to the company.) You’ve probably heard about the IPOs that see a surge in the share price on the first day of trading (like Alibaba, when its shares jumped by 36 percent on the first day of trading when the company went public in September 2014). But that happens rarely – and should not be a reason to invest in an IPO. Some big IPO action So far this year, there have been 772 initial public offerings. That’s the most since 2007. These offerings have raised a total of US$83.4 billion, which is up 90 percent from the same period last year. And the Asia-Pacific region is leading the charge. There have been 468 IPOs in this region (with US$37 billion raised) this year. Meanwhile, the second half of 2017 will see some big offerings. Two Chinese companies, China Tower Corp and Sinopec Marketing

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How To Budget For A Family In Hong Kong

First-time Parenting: Creating a Family Budget Plan in Hong Kong Learning how to budget for a family in Hong Kong is an important step to ensure that you can survive in this expensive city. According to the survey conducted by Mercer, a human resource firm in New York, Hong Kong landed second to the most expensive urban centres in the world. This data was actually intended for expats planning to live in Hong Kong. While they have a choice whether they want to live in this expensive city or not, the local residents of Hong Kong have to deal with the harsh reality of this city’s cost of living.   Usually, expensive cities justify the cost of living with high wages. But then again, how do the wages fare in Hong Kong? According to the data published by the South China Morning Post, fresh graduates are given HK$10,860 as their first salary. Do you think that is enough for you to live by?   Obviously, when you reach the point when you have to budget for a family, you should have gone through a couple of salary increases. Let us say that you are already earning HK$20,000 when you decided

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Want To Buy A Car In Hong Kong? Answer These Two Questions First

Do you have plans to buy a car in Hong Kong? Some people may feel the need for it.   The truth is, you can easily get around through the public transportation system – which is actually one of the safest and most efficient in the world. You have a lot of options from taxis, rail, bus, or tram. You can even use the ferry to get to the different islands around Hong Kong. Thanks to the Octopus Card, you can choose to ride any of these without difficulty.   While the public transport may be the best in the world, having your own car is still quite convenient – especially when you have a child. You can choose to go anywhere you want and no rain or other weather disturbances will make it hard for you to get to your destination.   This is probably the sentiment of the car owners in Hong Kong. According to the data from the Transport Department, the number of new registrations in the region is steadily growing from 2011 to 2015. For the first quarter of 2016, it is slowing a bit and in some months, the new registrations are lower than the

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Devastating Effects Of Bankruptcy On A Family

Social and Emotional Aftermath of Bankruptcy in Hong Kong The effects of bankruptcy is devastating. There is no doubt about that. This is why people are often times encouraged to avoid it at all cost. It will not only leave you with a bad credit reputation, it will also compromise your future endeavours.   Although you will be bear the burden of the bankruptcy consequences, you have to know that the people around you will suffer with you as well. Your family – spouse and children, will also suffer the effects of your bankruptcy petition.   Unfortunately, there are a lot of Hong Kong residents and companies that have succumbed to the call of bankruptcy. In 2014, the Receiver’s Office revealed that Hong Kong City had 9,945 cases of bankruptcy – both individual and corporations. This was said to be the highest since 2010. In the first quarter of 2015, the recorded bankruptcy cases reached 2,567.   That is a lot of bankruptcies for such a small city. It is also alarming since this is supposed to be a strong financial market. How can that be when the local residents are struggling to pay off their debts and have resorted

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Break The Glass Ceiling: 4 Asian Women Shaking Up Traditional Industries

We know the days when we are feeling low and a bit lost while we work towards our success. Here are some motivating thoughts from 4 Asian Women who are shaking up traditional industries: Esther Nguyen Before there was something like Spotify, people had a hard time getting access to their favourite music and other forms of media. With the help of the Internet, one can then explore the music downloading scene and even illegal downloading or piracy, but at the risk of getting different sorts of spams and viruses. Instead of a problem, however, Esther Nguyen saw this as an opportunity. Source: techinasia.cpm How she broke the glass ceiling  Nguyen was born to Vietnamese parents but was brought up in the United States. It was there that she delved into her first business venture, particularly selling cosmetics online, which did not work out. After that, she also explored green technology, but back then, investors were not very much interested in this either; little did she know then that her future success was in the combination of media and tech industries. After pursuing a law degree, she could not help but put her entrepreneurial skills to test once more. This

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