- Initial property price, rounded current price in city center for 2bdr in each city. Hong Kong is a little bit too expensive but I currently live there and it's so expensive that it had to be exagerated.
- The 20% you need to buy and 40 year mortgage is how the property sector was working until 2008 in my hometown, Barcelona, before the recession.
- Mortgage rate is 3%
- Rent you receive is around 7% of property value annually
- Inflation is +4% annually during boom and -6% during recession
- Savings return is around 1% annually
- owned property devaluation happens during 15 years until it reaches a minimum and then keeps up with recession/boom cycles
- Boom 10 years - Recession 5 years
- Initial property price, rounded current price in city center for 2bdr in each city. Hong Kong is a little bit too expensive but I currently live there and it's so expensive that it had to be exagerated.
- The 20% you need to buy and 40 year mortgage is how the property sector was working until 2008 in my hometown, Barcelona, before the recession.
- Mortgage rate is 3%
- Rent you receive is around 7% of property value annually
- Inflation is +4% annually during boom and -6% during recession
- Savings return is around 1% annually
- owned property devaluation happens during 15 years until it reaches a minimum and then keeps up with recession/boom cycles