We've been renting for the past 2.5 years, and we're now looking to buy a flat in an old building and renovate from top to bottom. This is because we will die a slow death if we had to live in a 450 sqft apartment.
The flat we're interested in is in a 43 yr old building and in Wan Chai. This doesn't bother us but it bothers the banks very much. We have been told the bank valuation is close to the asking price so that's one good thing, because so many banks value older buildings for much less than the asking price. But we are trying to get our heads around this whole thing of building age plus mortgage tenure not being more than 40 (or 60) years.
Our fear is more to do with selling the place, in time. If we live in it for a few years, the building will be closer to 50 years old. We're not buying it so much for investment as for ourselves to live in, but even so, could anyone give us any advice about buying into older buildings? Do banks stop lending money to buy buildings of 50 years and above? If this is the case, am I right to assume we will have problems selling the place in time because people can't get the loan for it, even if it's been nicely renovated?
How do people sell flats that are older than 50 years (or do they even exist in HK)?
We love the space and the potential it offers. Any help and advice on what we can do to get this place and the options of selling it in future would be greatly appreciated. Many thanks in advance.