Are two mortgages better than one?

[ndt]

Usually pay the balance to bring it out of negative territory, if and when it happens depend entirely on the bank and its risk management decision..

[traineeinvestor]

What actions might the bank take if we enter negative equity territory?

Based on past experience, so long as you are still making the payments, they are unlikely to do anything.

If you want to sell the property or refinance then it would be an issue.

Edit: this is Australian but my experience is that the same should apply in HK:

https://www.beyondbank.com.au/blog/h...-about-it.html

[bdw]

Why are you worried about negative equity if you buy now? Prices are going through the roof in the short term (next 6 months) and anyone buying now will become rich very quickly. I would only be worried about negative equity if you are a normal person who is sitting around doing nothing now thinking "oh maybe its best to wait and see what happens". These kind of normal people will never get rich quickly and always moan about things. You are obviously smarter than this and jumping in now to get rich!!

PS. I havent sold my flat yet

[hk.main]

Why are you worried about negative equity if you buy now? Prices are going through the roof in the short term (next 6 months) and anyone buying now will become rich very quickly. I would only be worried about negative equity if you are a normal person who is sitting around doing nothing now thinking "oh maybe its best to wait and see what happens". These kind of normal people will never get rich quickly and always moan about things. You are obviously smarter than this and jumping in now to get rich!!

PS. I havent sold my flat yet

Haha, I'm not worried about negative equity, per se, I just want to learn any and everything I can about all of this stuff so that I can make the most realistically informed decision.

[qhank]

HK has experienced huge losses in the residential housing sector back in the late 90s and early 2000s. Banks can and did call in loans that they deemed to be too risky. When that happens not only do you lose the asset but you still have to pay the balance of the loan. There were spates of negative equity suicides back then.

[hk.main]

HK has experienced huge losses in the residential housing sector back in the late 90s and early 2000s. Banks can and did call in loans that they deemed to be too risky. When that happens not only do you lose the asset but you still have to pay the balance of the loan. There were spates of negative equity suicides back then.

Hopefully nothing like that happens again. In any event if we go with two mortgages, and the bigger being 60%, I guess we'll be fine.

[aw451]

Why are you worried about negative equity if you buy now? Prices are going through the roof in the short term (next 6 months) and anyone buying now will become rich very quickly. I would only be worried about negative equity if you are a normal person who is sitting around doing nothing now thinking "oh maybe its best to wait and see what happens". These kind of normal people will never get rich quickly and always moan about things. You are obviously smarter than this and jumping in now to get rich!!

PS. I havent sold my flat yet

When people are this hysterical...