There is an old saying, 'Even among brothers, accounts must be clear.' Financial transactions between people must be clear, even between brothers. However, being clear does not necessarily mean that feelings are not hurt. After all, money can sometimes be such a big temptation that it can make people lose their senses. Just like the Lantern God recently saw at an auction a tenement unit in Tai Po, which was priced at HK$180,000 for auction, with a price per square foot of less than HK$700, and behind it was a story of two brothers turning against each other. The Lantern God recently saw a tenement unit on number 442A, Portland Street, Tai Po, located on a higher floor, with a practical area of 274 square feet. The owner priced half of the ownership at HK$180,000 for sale, with a price per square foot of the whole unit only about HK$656, less than HK$700. Even when talking about half of the ownership, if calculated by half the house, 137 square feet, the price per square foot is only HK$1,314, cheaper than public housing by at least two to three times. The younger brother refuses to move out of the unit, and the elder brother decides to sell half the ownership. Although it is a bit tiring to walk up eight flights of stairs in a tenement, there is no reason for it to be so cheap? The Lantern God asked the agent why. The agent revealed that the unit was originally owned by two brothers, and they had jointly bought the unit in the early years, each owning half. After that, the younger brother has been living in it all the time. Until recently, the elder brother, for some unknown reason, suddenly wanted the younger brother to return the unit, but the younger brother insisted on not moving, and the two could not reach an agreement after arguing. In the end, the elder brother, being angry, decided to 'if you are not benevolent, I will not be righteous,' so since you are not willing to move, there is no choice but to sell the half floor he owns directly, to cash out some money, and let it be over. Number 442A, Portland Street, Tai Po. The whole unit is valued at HK$2 million, the elder brother is willing to sell at a loss of 60% for HK$180,000. The agent also said that only half of the ownership is being sold now, because the younger brother is living there and does not allow people to enter the house to view the property, but in fact, the whole unit is normally valued at over HK$2 million, so the price of HK$180,000 is indeed a big discount. According to the data, the two brothers originally bought the unit together in 2013 for HK$900,000, each owning half, i.e., HK$450,000. However, the elder brother is now offering it for auction at HK$180,000, which is HK$270,000 lower than the purchase price, a loss of as high as 60%. Therefore, it is likely that the elder brother is selling it at this price for the sake of anger. The Lantern God looked at the secondary transaction records of the building in recent years, and the last transaction could be traced back to 2022, when a similar unit on the second floor below this unit was sold for HK$2.72 million. Considering the floor and the overall decline in property prices, the current market price of HK$2 million is indeed a reasonable price. A similar unit on the second floor below this unit was sold for HK$2.72 million in 2022. There is a possibility of earning HK$5,000 per month in rent, with a rental return of up to 33 cents. In addition, the unit is near Tai Po MTR Station, with a market rental value of about HK$10,000. The agent advised that after the buyer purchases half of the ownership, they can apply for a rent value certificate and request the tenant to pay the market rent, so even if the younger brother refuses to move out, the buyer has the right to collect rent from him. The Lantern God did some calculations, and if calculated by half of the ownership, he can still receive half of the market rent, which is HK$5,000 per month, totaling HK$60,000 per year. Calculated at the price of HK$180,000, the cost can be recovered in three years, with a rental return of as high as 33 cents! The unit is near Tai Po MTR Station, with a market rental value of about HK$10,000. 'King of Ghost Houses' Wu Koon Lau loves to invest in fragmented ownership properties. Actually, these properties with incomplete ownership, called 'fragmented ownership properties', having investment potential is not a news. Like the famous investor, 'King of Ghost Houses' Wu Koon Lau, is also a fan of fragmented ownership properties. Wu Koon Lau previously said in an interview that he started investing in fragmented ownership properties in 2010, because the price of the units is generally more than 40-50% lower than the market price, with a low entry cost. He even spent about HK$5 million in 2014 to buy five fragmented ownership units in one go, and at that time he had already owned more than seven similar properties. He explained that fragmented ownership properties are long-term investments, and even if short-term profits cannot be made by resale, long-term rental income can be quite substantial. Wu Koon Lau. (Photo by Yu Chun Leung) Rented units require negotiation with other co-owners, and if no consensus is reached, you may have to 'go to court'. However, don't be too excited, because investment involves risks. An auction expert reminded the Lantern God that since the ownership of fragmented ownership properties is scattered, if you buy a unit and want to collect rent, you actually have to negotiate with other co-owners to see if they are willing to move out and jointly rent the property. If the new buyer and the co-owners cannot reach an agreement, or even need to 'go to court'. The expert gave an example, saying that there was once a seasoned investor who bought a fragmented ownership property with the intention of collecting rent, but failed to reach an agreement with the elderly person living in the unit. In the end, the judge ruled that the elderly person could continue to live in the unit, making the investor's plan to unify the ownership unachievable. Therefore, he advised buyers to first discuss the feasibility of jointly collecting rent or acquiring the remaining ownership with the owner before officially bidding at the auction. The unit has no land title, and buyers need to pay in full. In addition, this unit has no land title, it is a 'no-title property', and buyers will find it very difficult to get a mortgage from the bank, so they need to be prepared to pay in full. Although the Lantern God also thinks the return on the unit is quite attractive, after hearing the story behind it, he really hopes that the two brothers can sit down and talk it through, and say 'brothers for life', without letting a little anger cause mutual losses.