CX Housing allowance 'Reference Index'

[EngineOut]

G'day all,

Just reading through the housing allowance agreement.

What is the current Reference Index?

Thanks

EO

[SIC]

Can anyone explain why - if the housing allowance follows an index - you seem to be able to afford less and less house with the money. Obviously it doesnt keep up with the market? This was the case pre SARS as well when the market was very high and guys couldnt afford much.

The reference index is an average rental cost published regularly and supposedly reflects the ups and downs in the market. Cathay uses this to determine whether the rental for your place ( $ per square foot )is on par with the market.
Basic FO rate is now around 52000 and if you buy and fix it long term its as much as 56000. Dont quote me on this.

[EngineOut]

Sorry, what I meant was, in the agreement in refers to the RFZ as $35,000 with a reference index of 76.1 (based on 1999 = 100%). So I was wondering what the reference index is at today, that way I can work out the rest of the figures are today.

Thanks.

[BuzzBox]

May 2007 Government Rental Index (Type D & E properties) = 113.0

[EngineOut]

I found the 113.0 on the following table on the RVD website:

http://www.rvd.gov.hk/en/doc/statistics/rvd1_2.pdf

however on page 2 it has 'Territory Wide'
with Class D & E, it has current month as 133.3

Which one do CX work off?

With the RFZ being $35,000/month @ 100% (from the agreement) does that mean current RFZ would be 133.3% of $35000, so $46,655...does that sound correct

or is it (from the first page) 113.0% of $35000 = $39,550/month

I'm confused :sad:

[Loopdeloop]

The agreement started with $35k at 76.1%. Seems like a strange place to start, but I think if you use this as your starting point you'll be able to find the result you want, which is probably $52k!

[EngineOut]

OK i understand the maths there. Can anyone actually confirm that the actual current RFZ is $52K ($26K for SO's)

Thanks

[BuzzBox]

Yes, the current RFZ is $52,000 ($26,000 for SOs with less than 2 years service).

The maths: 113.0/76.1 x $35,000 = $52,000 (rounded to the nearest $100).

[Whenwe]

What sort of rented accomadation can you get for HK$52000, and would that be on Lantau?
Sorry I asked this question on another thread and no reply. Some info will be appreciated.

[Freehills]

http://www.savills.com.hk/

and do a search to get a feeling of what 52k can get you. No, doesn't need to be on Lantau. Obviously there are tradeoffs space/ facilities/ location that need to be made.

[Whenwe]

Freehills,

Thank you for your reply. CX has advertised for Sim Istructors and I am making some inquiries.
Lantau island would seem a logical choice due to distance from anywhere else.

Thnks