Coming to HK

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  1. #1

    Join Date
    Mar 2005
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    75

    Red face Coming to HK

    just wondering what's the interest rate like in HK for credit cards & home loan? thanks!


  2. #2

    Join Date
    May 2004
    Location
    Hong Kong
    Posts
    580

    The mortgage rate is currently about 2.5%.

    HSBC's credit card rate is currently 26.8% for purchases. As always, financing through credit cards would have to be a last resort - there are generally better ways to borrow money.


  3. #3

    Join Date
    Mar 2005
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    close enuff to Causeway Bay
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    savings account rates?

    What are the current rates on say a money market account in HK?


  4. #4

    Join Date
    Mar 2005
    Posts
    75

    home loan rate is sooo cheap compared with Australia! but credit card is very expensive!!! I guess I will have to start buying stuff by cash then.... is there any interest free period for credit card?


  5. #5

    Join Date
    Mar 2005
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    75

    and mortgage interest is tax deductible rite??? is rent tax deductible for expat?


  6. #6

    Join Date
    May 2004
    Location
    Hong Kong
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    580

    Credit cards always come interest-free until at least two weeks after the next statement date. And if you have the money anyway then you just set up an autopay to pay off the full amount every month. That way you never incur interest charges. Using credit cards in this way is better than using cash because many places have special offers for purchases on certain brands of credit cards, and you can earn AsiaMiles or similar on your card.

    Savings account rates in HKD are negligible.

    Home loan interest payments are tax deductible up to a limit of HK$100,000 per year (i.e. you can deduct that amount from the income on which tax is assessed, not that much tax). See here: http://www.ird.gov.hk/eng/tax/ind_hli.htm

    Rental payments can also be used to lower the tax bill, but it requires the co-operation of your employer to structure your compensation so that some of it is defined as "Rental Allowance" and your employer will need to validate the rent that you actually pay and make returns to the tax office as well as you. Most larger employers are familiar with this system. It is not a simple deduction from taxable income. Details are here:
    http://www.ird.gov.hk/eng/pdf/pam44e.pdf
    In simple cases you don't pay tax on Rental Allowance that is in excess of 10% of your other income.

    Which would be better for you requires a calculation involiving your income, the rent you intend to pay, how much of your income is declared as a Rental allowance, the price you might pay for a property, and the interest rate on the mortgage.

    All residents of HK are subjct to the same tax rules, expat or not.


  7. #7

    Join Date
    Mar 2005
    Posts
    75

    thanks! that was really useful! thinking of buying an apt, but guess will need to get myself familiarised with HK's property market first. Apart from mid levels, which area is good residential area? is Pao Ma de good?


  8. #8

    Join Date
    Aug 2004
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    Mind your own f**k'n business!
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    You do know the prices for an appartment in a nice area here? They make Australian realestate prices look very cheap!


  9. #9

    Join Date
    Mar 2005
    Location
    beach burbia Elwood/ HK
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    68

    and hence

    Quote Originally Posted by Baron:
    You do know the prices for an appartment in a nice area here? They make Australian realestate prices look very cheap!
    and hence the highrise apartment speculators in Australia..aiming for the HK expat market

  10. #10

    Join Date
    Apr 2005
    Posts
    6

    inttering H.K. as a dependent i.d.

    Hiii all,
    i hope this site realy helps me which i searched many thimes. i m in confuse is , my wife is an Id, holder of h.k.get that on the date of 2004 i think. and she is in hong kong now and also she gave a birth to our child in honk kong.Now the both mother and child had permission to live their. And i want to be in hong kong with them.As i have all documeant to proove that all. so what can i do for that . is it all possible for me to be there and live,work with my family,,
    please i m very much expecting some feed back from u all... thank you all.............roin

    Last edited by roin; 06-04-2005 at 09:33 PM. Reason: want some true advice

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