With the implementation of the "stamp duty" policy repeal, the Hong Kong property market has undergone significant changes, stimulating market enthusiasm and attracting widespread discussion and attention. This policy adjustment has had a positive impact on property market transactions, boosting market activity to new heights, as if a wave of enthusiasm has swept through Hong Kong.

In the first weekend after the policy announcement, the Hong Kong property market witnessed a resurgence of "sunlight sales." Belgravia Place, a project under Henderson Land, saw all 138 units sold out within just 4 hours! This remarkable achievement is attributed to the policy adjustment made by the Hong Kong government.

The removal of heavy taxes on the property market has triggered a strong reaction from the market. Before February 26th, there were only 4 transactions of first-hand residential properties across Hong Kong, and on the 27th, there were only 14. However, from the 28th to March 2nd, the daily transaction volumes were 28, 53, 54, and 82 respectively.

In other words, the transaction volume of first-hand residential properties in just 4 days almost equaled the total of 270 transactions in the entire month of February.

Due to the high rental yields in Hong Kong, many people are eyeing the opportunity to invest in Hong Kong properties for rental income, aiming to secure stable rental returns. However, is it really profitable?

Suppose you currently have HKD 3 million and plan to invest in a property worth HKD 7 million in Hong Kong.

The cost of purchasing the property includes HKD 210,000 in stamp duty (calculated based on the property price) and about HKD 300,000 in agent fees, lawyer fees, etc., totaling approximately HKD 7.3 million.

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Additionally, you would need to take out a loan of at least HKD 4 million, with an interest rate of 4.125%. The monthly repayment would be HKD 19,000, totaling over HKD 230,000 per year.

After purchasing, if you rent out the property, the monthly rental income would be HKD 19,000 (rental yield of 2-3%).

However, in addition to rental income, there are other holding costs, including property management fees (HKD 1,500 per month), rental agency fees (HKD 9,500, equivalent to half a month's rent), rental stamp duty, and more.

After comprehensive calculation, the annual rental income would be about HKD 180,000. In other words, the rental income cannot cover the loan and other expenses, resulting in an annual deficit of HKD 50,000.

In comparison, if you choose to invest HKD 5.5 million in Hong Kong insurance, you may receive a higher return. After purchasing Hong Kong insurance, you can enjoy a lifetime wealth cash flow with an expected IRR of up to 7%.

Suppose you deposit HKD 1.1 million annually for 5 consecutive years, totaling an investment of HKD 5.5 million. Starting from the 10th year, you can receive an annual sum of 8% of the total premiums paid, i.e., HKD 440,000, continuously for 91 years. During this period, you can receive a total cash income of HKD 40.02 million. Moreover, even during the payout period, the policy still retains a residual value.

For example, in the 10th year, the policy has a residual value of HKD 5.98 million; in the 30th year, it's HKD 6.97 million; in the 50th year, it's HKD 8.75 million; and in the 100th year, it's HKD 129 million.

Therefore, Hong Kong insurance not only maintains a rental rate of 8% per year but also continuously increases residual assets over the holding period, demonstrating continuous cash flow and total asset growth with the increase in holding years. You can choose to withdraw cash directly or use features unique to Hong Kong insurance policies, such as policy splitting and changing insured persons, to pass the policy on to your spouse or the next generation to achieve asset inheritance goals.

In comparison, purchasing property requires annual payment of loan interest and holding costs, which will not be fully repaid until you reach 100 years old, and the property will gradually deteriorate. On the other hand, purchasing Hong Kong insurance provides an annual cash income of HKD 440,000, and even at the age of 100, there will still be HKD 129 million in cash assets in the account to pass on to future generations.