Buying A Flat ?

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  1. #1

    Join Date
    Dec 2003
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    Buying A Flat ?

    Hi!

    Kung Hei Fat Choi to you all good people browsing .http://www.geoexpat.com/forum/newthr...ewthread&f=13#

    My questions :

    1. Do you need to be a Permanent Resident to apply for a mortgage in order to purchase a flat in HK ?

    2. If one is planning to work and stay in HK for the next ten years , which is more advisable ; to rent or to buy a small , relatively cheap flat ?


    thanks again


  2. #2

    Join Date
    Aug 2003
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    62

    rent !

    if you own a place overseas, keep it and rent it out. buying here means taking a share of leasehold, and all the aggro that comes with that. prices are very high compared to most other places in the world, so you'd get a better rental yield (the return on your investment) elsewhere, perhaps in the place you want to move to (retire to) in 10 years time.


  3. #3

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    Apr 2003
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    Sorry .. missed this thread. I could have sworn I'd answered it.

    >> to rent or to buy a small , relatively cheap flat ?

    Say you pay $1,000,000 for the flat. You'd be renting it at about $60-80K/year. If you purchase something that does need major renovation and can keep legal fees low and get a good mortage, your expenses on the mortage will be about 2.5-3% a year i.e. 25,000-30,000.

    Assuming you sell the flat for $1,000,000 you would have saved a fair bit.

    The major problem with the cost of the mortage is the 30% downpayment that the flat requires. This is virtually non-negotiable.

    The permanent resident part is not a requirement. Some of the local chinese banks may need you to be a perm resident, but banks like HSBC, Standard Chartered have already calculated risks associated with that. They will probably be a little bit more strict on your ability to pay and your payroll record etc.


  4. #4

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    Apr 2003
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    Mr KnowItAll needs to talk to Mr Scott at Schnubarrts. Its all his fault ..


  5. #5

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    Dec 2003
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    Quote Original Post:
    Sorry .. missed this thread. I could have sworn I'd answered it.

    >> to rent or to buy a small , relatively cheap flat ?
    thanks! ...
    I have worked out the monthly rent vs monthly mortgage comparison thingy ... well, kinda ... but it feels good to hear somebody else's opinion . Especially somebody who knows it all

  6. #6

    Join Date
    May 2003
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    Knowitall - I have to disagree with you on the 30% downpayment. We just bought a flat (both non-permanent residents) and it was no problem to get a 90% mortgage at 2,4%. We approached HSBC and were very happy with their service.


  7. #7

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    Apr 2003
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    >> it was no problem to get a 90% mortgage at 2,4%

    Was the building was new and/or did you had to signup for some additional insurance from the home mortgage corporation?


  8. #8

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    May 2003
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    Quote Original Post:
    >> it was no problem to get a 90% mortgage at 2,4%

    Was the building was new and/or did you had to signup for some additional insurance from the home mortgage corporation?
    The building is 20 years old - no, we did not have to sign up for any additional insurance. Completion took a bit longer than usual (we were apparantly thouroughly investigated...), but we still completed within 30 working days.

  9. #9

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    Apr 2003
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    This is really good info. Apparently they have softened their lending policies a bit over the last year or so. Thanks for the info.


  10. #10

    Join Date
    May 2003
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    They definitely have - I guess we have to thank the slump of the property market to thank for that. My biggest concern was actually the fact that the property is 20 years old, but it was no issue at all.


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