• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
GO TO EXPAT LIVING SINGAPORE
GET OUR NEWSLETTER

Expat Living Hong Kong HomepageExpat Living Hong Kong

Moving to Hong Kong and not sure where to start? Expat Living is the essential lifestyle guide to living in Hong Kong.

Menu
  • Living In Hong Kong
      • Living Here
      • Where To Live
      • Schools
      • For Guys
        • School news - new schools in Hong Kong, new curriculums, new facilities and more!What’s new on the school scene?
        • Shopping in Hong Kong - K11 MuseaThe ultimate guide to shopping in Hong Kong
        • Handy Hong Kong smartphone apps
        • Guide to Chinese New Year traditions
      • View all
    Close
  • Things To Do
      • Things To Do
      • What’s On/Calendar
      • Competitions & Offers
        • Exploring Hong Kong - Lamma IslandTop spots to enjoy HK’s great outdoors
        • Guide to Chinese New Year traditions
        • What to watch – or listen to…
        • 9 family-friendly hikes in Hong Kong
      • View all
    Close
  • Kids
      • Activities & Things To Do
      • Education & Enrichment
      • Health & Wellness
      • Mums & Babies
      • Podcasts
      • Kids Offers
        • School news - new schools in Hong Kong, new curriculums, new facilities and more!What’s new on the school scene?
        • jobs of the futurePreparing children for the jobs of the future
        • Language courses for all the family
        • Where to get stylish kid-friendly mats
      • View all
    Close
  • Homes
      • Home Décor
      • Readers Homes
        • Where to buy household essentials in Hong KongWhere to buy household essentials
        • Heveya mattress - eco-friendly bedroom furniture, sustainable productsGreat ways to go “green” in the bedroom
        • Luxury homes for lease in Hong Kong
        • Beautiful ginger jar lamps for your home
      • View all
    Close
  • Travel
      • Short Breaks
      • Further Afield
      • Travel News & Offers
        • Beach escapes - Gili Lankanfushi – MaldivesPlan ahead: 8 great beach escapes
        • Top skiing destinations - Whistler, CanadaStunning ski stays in Europe and beyond
        • Mongolia - kidsA family adventure in Mongolia
        • Where to stay and what to do in Thailand - MerdekaQuick getaways: Where to go in Thailand
      • View all
    Close
  • Wine & Dine
      • Recipes & Groceries
      • Bars & Restaurants
        • Pork chopsRecipe: Pork Chops with Apple and Creamy Mash
        • Carrot and lentil soup recipeRecipe: Carrot and Lentil Soup
        • Vegetarian recipe: Vietnamese rice roll with quorn mince and bolognese sauce5 meat-free meal ideas to try
        • Chocolate Tiffin - RecipeNo-bake Chocolate Tiffin Recipe
      • View all
    Close
  • Style & Beauty
      • Fashion
      • Hair & Beauty
        • Shopping in Hong Kong - K11 MuseaThe ultimate guide to shopping in Hong Kong
        • Fashion in Hong Kong - Sparks activewearFashion news: the latest launches
        • online shopping websites21 fashion websites shipping to HK
        • Buying diamonds - The Diamond Registry can offer competitive pricing as a major international diamond distributor.Looking for a good deal on diamonds?
      • View all
    Close
  • Health & Fitness
      • Medical & Dental
      • Fitness
      • Wellness
        • Gyms in Hong Kong - best places for keeping fit8 great places to go to keep in shape
        • Heart Health: Are you over-exercising?
        • Home workout5 workout moves you can do at home
        • Central & Stanley Wellness - functional medicine treatmentFunctional medicine and how it helps
      • View all
    Close
  • Shop
      • Magazine
      • Advertise With Us
        • December – February 2021
        • DEC-FEB 2020 – $36 (USUAL PRICE $48)
        • City Guide 2020-2021
        • City Guide 2020-2021 – $28
      • View all
    Close
Home » Living In Hong Kong » Investing FAQ’s: Property or stocks?

Investing FAQ’s: Property or stocks?

6 January, 2020 by Expat Living 3 Min Read

https://expatliving.hk/investment-advice-property-or-stock-market-financial-advisors-hong-kong/

In our regular column, Money Matters, SIMON PARFITT of Pyrmont Wealth Management answers your burning questions on finance. Here, he considers where you should put your money for the best return on investment.

“What is a better investment, property or the stock market?”

While return on investment is important, there are many other things to consider when investing. Let’s consider both options.

Simon Pyrmont

Property

Property provides an income in the form of rent and hopefully capital appreciation as property grows in value. Taking the UK as an example, top rental areas there can generate between 7 and 10 percent in rental yields; London can be lower at around 3 percent. However, yields can be significantly reduced with things like management fees, service charges and general maintenance costs as a landlord.

Another potential advantage is leverage (that is, borrowing). Let’s say you buy a property worth $500,000 with a down payment of $100,000. The property grows in value by 3 percent ($15,000) which means you have earned a 15 percent return on your initial investment of $100,000. Compare this with average yearly returns of the S&P 500 Stocks & Shares Index of around 10 percent.

On the other hand, the fees associated with property investment can add up. In the UK, initial stamp duty alone can be over 10 percent of the property value if you are buying highvalue property and already own another property somewhere else in the world. We should also note that if you own property in the UK, those assets will be liable for capital gains when sold and also inheritance tax of up to 40 percent, even if you’re not British or UK-domiciled.

Stock Market

Investing in the stock market is an effective way of diversifying your money. If, for example, you invest in the FTSE 100 index, you are investing in 100 companies, and it is not uncommon for one portfolio to provide exposure to more than 10,000 different stocks. Investing in the stock market is also relatively low maintenance compared to being a property landlord.

We should also note that while past performance is not an indicator of future performance, the stock market has grown consistently over time. Since 1996, the S&P 500 grew by 621 percent, irrespective of different financial crisis and geopolitical issues. (Source: Motley Fool.)

Yet investing in the stock market isn’t for everyone. Prices can fluctuate in the short term and it requires that you remain disciplined and unemotional. This can be difficult for even seasoned investors. You also need to be vigilant on the fees you’re paying as it’s not unheard of for traditional active management strategies to cost 2 to 3 percent per year. Comparatively, a low-cost evidence based approach may cost around 0.3 percent or even less, which is a huge saving over time.

A balanced approach

Overall, a smart investment strategy is to be well diversified by geography and asset type. Therefore, it may not be the best decision to be solely invested in the stock market or property. Having a balanced approach will ensure you are spreading risk and enjoying the benefits of both.

Ask Pyrmont for advice on where and how to invest your money. Simon is regulated by both the HK Confederation of Insurance Brokers (011833) and the Securities and Futures Commission (BGY807).

6017 4140 | simonparfitt@pyrmontwm.com | pyrmontwm.com

 

See more in our Living in Hong Kong section

26 ways to enjoy Hong Kong’s waters
Where to live in Hong Kong

This article first appeared in the Home Decor issue of Expat Living magazine. Subscribe now so you never miss an issue.

Categories: Living Here Living In Hong Kong Tags: Finance financial advisors in hong kong Investment Living In Hong Kong Money Property Pyrmont Wealth Management Stock market

You May Also Like

Expat Living Readers' Choice Awards 2021 - Winners

READERS’ CHOICE AWARDS 2021 WINNERS

Home loans for Aussie expats 

Expat life in Hong Kong - advantages and disadvantages

Pros and cons of living in HK

Primary Sidebar

Editor's Picks

Kellett School

Best International Schools In Hong Kong, Preschool to Secondary

Furniture in Hong Kong: Guide To The Best Furniture Stores

sightseeing in Hong Kong

Top 30 Hong Kong Attractions & Best Places To Visit

Where to live in Hong Kong

Guide to Living in Hong Kong and where to live

Landing pads: places to stay in Hong Kong

Brunch in Hong Kong

Best Sunday Brunch Places in Hong Kong

What's On

Hong Kong activities - MET Nightly Opera Streams

The MET’S “Nightly Met Opera Streams”

Students at Hong Kong Academy

Hong Kong Academy – Applications Open for 2021/22

CDNIS - Admissions

CDNIS Admissions Timetable: Apply Now for January and August 2021

Events & Weekend Activities - The Grounds is the city's first responsible entertainment destination

The Grounds: HK’s first ‘COVID-19 responsible’ entertainment destination

Elsa in scene from Frozen

FWD Presents: The Frozen Exhibition Hong Kong

You Rise art exhibition by JM Robert

“You Rise” Solo Exhibition by JM Robert

Expat Living Hong Kong 🇭🇰

expatlivinghk

Open
🎉 We're so pleased to announce the winners of our Readers' Choice Awards! Congrats to all the companies who were voted among the best in Hong Kong, and to the voters who won the amazing prizes. See the full results online now at 👉 expatliving.hk/readerschoice

.
#expatlivinghk #hkbusiness #hongkongbusiness #elhkreaderschoice #hkexpats
Open
Pieces for your dining room mood board!🪑We are feeling these tones 🤎
Open
Thanks Julianna for this delicious 
Easy Blueberry Oreo Cheesecake to start the weekend!
Serves 4, or 2 if you're hungry😉

Preparation time: 15 mins Ingredients:
• 6 digestive biscuits
• 50g butter 
• 250g cream cheese (1 brick) 
• 6 Oreo biscuits
• 125g blueberries (1 box)
• 100g milk or whipped cream 
• 5 tablespoons sugar

Instructions:
For crust:
1. Crush digestive biscuits in a big bowl and add melted butter.
2. Press together at the base of the cake mould.
3. Set aside to cool.

For filling: 
1. Beat cream cheese, sugar and milk or whipped cream on medium speed in a bowl until it is smooth and creamy. 
2. Add crushed Oreos and beat until they mix evenly. 
3. Pour the filling over the cooled crust.
4. Freeze for two hours and top with blueberries!🫐
Open
If you’re looking for a place to live in Hong Kong - particularly if you’re moving here and want an easy landing pad - a serviced apartment can be a godsend! @hongkongparkview is like a mini town with everything you need from a Clubhouse with full facilities to a toy shop, clothes and food shop! 🏞🛍
Open
Read our Winter issue on any device for free 👉 expatliving.hk/digital/ig.
Inside: Two inspiring home reno stories, great dining room furniture ideas, insider's guide to Hung Hom Bay and plenty of other great reads, including easy dessert recipes!
Open
How cool is this - Hong Kong-based @ovolohotels is the first hotel group to go entirely vegetarian across its restaurants, bars and food services for a year! 🌱This move is the latest in the group’s series of eco-friendly initiatives, and doesn’t this look delicious!👏🏻
Open
If we’ve learnt anything this last year it’s how much a magical view can do for your mind🌿These are just some of the properties showcased by @knightfrank 🙌🏼 Head to knightfrank.com.hk to see what’s currently available! 🏞
Open
Wishing everyone a safe and Happy New Year from the team at @expatlivinghk ❤️

📷 @lailasophiashah
Open
There’s been a buzz lately around CBD (Cannabidiol, derived from the flowers and leaves of the hemp plant) and its purported health benefits. 
Did you know it’s available in Hong Kong? 🌿

@kamacbdhk is a new HK-based company offering CBD products that can help a number of ailments, check out our article and their page for more information!🌺
Open
🎄 Merry Christmas everyone! It's been an extraordinary year and we're so grateful for your support. We wish you all a safe and happy holiday season 🌟🥂
Open
This 1950s colonial-style walk up in Kowloon Tong has been styled so well by tenant Jerome, it is fascinating to hear about the place and it’s history! For the full story and Jerome’s recommendations see our DEC-FEB issue✨📖
Open
Whether you’ve hiked up Old Peak Road or taken the tram, make sure you’re hungry, as you’ll want to consume most of the menu from @fiammahk 🍴🍅
Open
5 steps for a stylish Christmas, courtesy of Hong Kong-based home furnishing retailer @indigo_living 🎄
 
#1 Decide on a Theme:
Every momentous Christmas feast begins with a stunning table-scape. Whether you’re going for the classic red and green pairing or a contemporary setting, pick a theme that you can go all out with! 
 
#2 Organise Your Linen:
Generally speaking, a crisp white linen table-runner will do. But if you’re looking to up the ante this year, go for one with subtle prints on it. 
 
#3 Choose a Centrepiece:
 A beautiful Christmas centrepiece is the fastest way to add cheer to your party. It’s also a great excuse to show off your creative flair to friends and family. 
 
#4 Invest in a Good Set of Tableware:
When it comes to tableware, most people play it safe with crystal glasses and porcelain plates. Why not take it up a notch by throwing a set of gold cutlery into the mix? It’s an instant pop of luxury that exudes warmth to traditional red and green themes. 🍴
 
#5 End with a Bang:
What’s a Christmas dinner without some good old-fashioned crackers? Sure to put a smile on anyone’s faces, they’ll also ensure your party goes out with a bang! 💫
Open
What a view 🙌🏼

📷 @lailasophiashah
Open
Less than five days left to vote for your favourite businesses! You could win fun family staycays and dining vouchers, so make sure to vote today by visiting 👉 expatliving.hk/readerschoice

.
#expatlivinghk #hkbusiness #hongkongbusiness #elhkreaderschoice #hkexpats
Open
Jazz up your dining area with these pretty picks!⚡️

Companies tagged in the photos for more details🪑
Open
Get ready for Christmas, CNY and beyond with these fab treatment packages now available at @amooma.spa ✨

#1 BUBBLE & SPARKLE
A package for two, including an aroma steam shower, deep sleep tourmaline crystal massage, sparkling champagne facial and a glass of champagne 🥂

#2 HO! HO! HO! IT’S ME-TIME!
Designed for one person, this me-time includes a ling organic forbidden rice scrub, ling nourishing body wrap, AMOONA signature blend and knesko gemological face mask 🧖🏼‍♀️
Open
How good do these look 😍 New recipe from @charissa_and_co_wellness. You can try a free sample by scanning the bar code on our online articles 💜

Recipe: Flourless Pecan Cranberry Brownie

Ingredients

Brownie base:

2 servings of Nuzest Clean Lean Chocolate Protein
1.5 cup of pumpkin puree
1 cup of hazelnut butter or almond *
1/2 cup of raw dark cacao powder
1/2 cup of chopped pecans
1/3 cup of dehydrated cranberries
2 teaspoons of Manuka honey ** Optional
White chocolate drizzle:

1/3 cup of melted cacao butter
2 tablespoons of cashew nut butter
1 teaspoon of vanilla extract
1-2 teaspoons of Erythritol
Dark chocolate drizzle:

1/3 cup of melted cacao butter
2 tablespoons of cashew nut butter
1 teaspoon of vanilla extract
1 tablespoon of coconut oil
3 tablespoons of raw dark cacao powder
1 teaspoon of Erythritol
Instructions

Brownie base:

Preheat oven to 180 degrees Celsius.
Grease a square baking tray with coconut oil and line tray with parchment paper.
In a large blender, mix all the brownie ingredients together until smooth.
Pour the brownie mix into the pan and bake in the oven for 20 minutes.
Once cooked, allow the brownies to cool on a rack.
Chocolate drizzle:

You will need two separate mixing bowls for the white and dark chocolate drizzle.
Melt the cacao butter at low temperature and mix with the rest of the ingredients.
Pour the chocolate drizzle over the cooled brownies.
Pop them in the fridge to set or enjoy them as warm brownies.**
Optional: Sprinkle some fresh pomegranate and dried cranberry seeds onto the brownies (after cooling in the fridge for 20 minutes).
Open
TGIF 🌿🌿

📷 @lailasophiashah
Open
In our new winter issue we take a look at Dutch expat Nicole Hessing’s impressive home renovation in Clearwater Bay 🏡 Check out the article for all her tips and local recommendations 👉 expatliving.hk/digital/ig
  • COMPETITIONS & OFFERS
  • About
  • Advertise
  • Contact
  • Privacy
  • Subscribe

© 2021 Expat Living Hong Kong, All Rights Reserved.