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Should I discount the 15% as a potential buyer?

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  1. #31

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    The site linked references a legco document, though without a link. If I were on a real computer not a phone I'm sure it would be easy to find.


  2. #32

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    A much more interesting topic than the OT...

    Original text of the Church of England Trust Ordinance:

    6. (1) Saint John's Cathedral Church and the precincts thereof
    together with all buildings, rights, easements and appurtenances
    thereunto belonging, and together with all the estate, right, title and
    interest of the church body as heretofore constituted shall vest in the
    trustees in fee simple for the sole and express purpose of a church and to
    the intent th-at divine worship and the services usual in the Church of
    England shall be therein performed and carried on in accordance with the
    rites and ceremonies of the said Church:

    Provided that

    (a)if at any time the church ceases to be used as a church for
    divine worship and the services usual in the Church of England
    cease to be performed and carried on therein in accordance
    with the said rites and ceremonies, the church and the precincts
    thereof shall revert to and become the absolute property of the
    Crown unless the same be sold or otherwise disposed of with
    the consent in writing of the Governor; and (Amended, 33 of
    1939, Supp. Schedule, G.N. 840/40)
    According to this LegCo report, certain language was changed, as follows:

    Section 6(1) of the Church of England Trust Ordinance (Cap. 1014)
    2. Section 6(1) of the Church of England Trust Ordinance (Cap. 1014)
    provides that if at any time Saint John's Cathedral Church ceases to be used as a
    church for divine worship and the services usual in the Church of England cease to be
    performed and carried on therein in accordance with the said rites and ceremonies, the
    church and the precincts thereof shall revert to and become the absolute property of
    the Crown unless the same be sold or otherwise disposed of with the consent in
    writing of the Chief Executive.

    3. The Bill proposes to adapt "Crown" to "Government". The proposed
    adaptation follows the principle laid down in Article 7 of the Basic Law, i.e., the land
    and natural resources within the HKSAR shall be State property and the HKSAR
    Government shall be responsible for their management, use and development.
    My 10-minute scholarship on this momentous question suggests that (unless the Church of England Trust Ordinance has been changed in ways not reflected in the LegCo report) the only change to St. John's status was related to the reversionary interest, which only becomes relevant if it "ceases to be used as a church for divine worship and the services usual in the Church of England cease to be performed and carried on therein in accordance with the said rites and ceremonies", in which case the property reverts to the HK Government, rather than to the Crown. Anyway, that's the way I read it...

    (The only reason I have any interest in this topic at all, of course, is the impending OLQE Conveyancing Head on Friday. The very first page of my lecture notes includes the (in)famous statement about St. Johns' alleged freehold, written by the esteemed Prof. Michael Wilkinson, whom I have no reason to doubt. Of course, he could be wrong! )
    shri likes this.

  3. #33

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    Quote Originally Posted by big_panda:
    There are still plenty of local PR buyers for small flats (i.e. 450-800sqf).
    That is a big spread 450-800 space-wise.
    For older walkup Chinese building apartments around Mid-levels (sub 450sf), the market has been mostly foreigners providing the borrowers. Local PR buyers more focussed on newer apartments. It will be interesting to see if any adjustment in the asking and agreed prices of the older apartments.

  4. #34

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    According to some reports, buyers are asking for a 10%+ discount whereas sellers only prepared to give up 5%. So an immediate standoff but adjustments will be made eventually to accommodate deals. These things get swallowed up.


  5. #35

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    SCMP reporting today that secondary sales are back up in response the buyers reducing asking prices by 5% in response to the new 15% tax.


  6. #36

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    According to one agent I spoke to yesterday, a number of those thinking about buying have not worked out the consequences of the tax, namely that the buyer's tax cannot be rolled up into a mortgage and is all payable upfront.


  7. #37

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    Stamp duty now keeping non-locals out of property market.
    http://www.scmp.com/news/hong-kong/a...operty-market?


  8. #38

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    There was a certain subset of borrowers prior to the additional tax measures who were looking for a 90% mortgage. The 15% tax one would think knocks out this category of buyers as the required de facto deposit goes up by a whopping 150% from 10% to now 25%. Indeed. But for those who previously would have 'traditionally' borrowed at a LTV of 70% that additional 20% might now be drawn down on (assuming one qualifies) in order to effectively roll up that additional tax within the mortgage.


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