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How do I start if I want to buy a flat?

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  1. #1

    Join Date
    Jan 2010
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    How do I start if I want to buy a flat?

    I would like to know how I should start if I want to buy a flat to live in. Where to start, what to consider, where to get information on the fee structure of buying a flat, mortgage information, which area to consider, what to consider when one says buying a small one first and then selling the small one buying a big one later, etc, etc..

    Questions may be naive, but one always has a first time.

    Thanks for whatever information you can provide.


  2. #2

    Join Date
    May 2009
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    The process in HK works something like this:

    - you go looking at properties and find a flat you like
    - check the bank valuation for the flat (can be done online for some properties, else ring round the banks with the address, age and size of flat)
    - based on the bank valuation, you put in an offer (bearing in mind that the bank will only give you a mortgage for 70-95% of the valuation, depending on what kind of mortgage you get, so you need to be able to make up the difference between the agreed selling price and valuation)
    - if the vendor accepts your offer you need to get a lawyer to check the property with the land registry etc. and if all ok you pay 5% deposit (pretty much immediately to get it taken off the market) and sign the provisional sales and purchase agreement
    - you then go to banks with the provisional S&P agreement and apply for a mortgage
    - 2(?) weeks later, you pay another 5% and sign the formal sales and purchase agreement
    - 4 weeks later you complete and the property is yours.

    Depending on which country you're from, the process might seem a bit back to front in that you can only apply for mortgage once you've paid your deposit...so you need to talk to banks beforehand and find out what their criteria are for lending to make sure you fit it because if you're turned down for a mortgage and so pull out of the purchase you will lose your deposit.

    Hope that helps...

    zhanghz likes this.

  3. #3

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    Think about your lifestyle and choose the area you want to live in.
    Think about the budget you have based on how much deposit you have, and the mortgage u can afford.

    go to an agent in your desired area with the budget and see what types of flats you can get. once you have an idea, you will learn more about what you can compromise in terms of the flat, the area and the budget.

    it took me about 6 months and seeing about 50 different flats before i settled on one.

    my personal thinking is to get as nice, big a flat you can afford and stay there for as long as possible unless u are looking to flip and make money from trading property. It is alot of hassle to pack, move, search for new flats, sort out all the legal issues, pay for agent and solicitors and stamp duty etc. if you keep moving around.

    zhanghz likes this.

  4. #4

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    Hi Guys;

    I am looking to buy as well. I do agree that the market is expensive, but I am not in it to flip, I am in it to live for the long term. The problem is finding a good mortgage. I was at HSBC today and all they offer are ARM type mortgages - I would much prefer a fixed rate. Does anyone know of a website and/or service I can use such that I can find a bank that offers the most competitive mortgage?


  5. #5

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    May 2009
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    mreferral are a mortgage brokers. Macky Fung there was incredibly helpful finding me the best mortgage deals when I was buying.

    boxhead likes this.

  6. #6

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    Boxhead I don't think you can find a fixed rate mortgage here
    Posted via Mobile Device

    boxhead likes this.

  7. #7

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    Beuze - I have a feeling you are right based on what I read and the people I talked to thus far. It appears everything revolves around "P" The concern that I have is P getting volatile, or going very high. Is there a chance that this could happen - and if so, will I be in ARM hell then? or is my concern unmitigated?

    Another followup question regarding websites - anyone know of a good website that I can use to look for HK prop? I found centaline and midland, but is there anything better?

    Yet another question - does HK have a notion of a MLS (Multiple Listing Service)? If so, what is it called and can people like me access it?


  8. #8

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    boxhead - the market is too fragmented here for MLS ... best bets are places like gohome.com.hk and research from walking around areas you like and talking to the agents. (Don't be in a rush to see anything, as the agents will make you sign an agreement that you need to give them a comission if you buy that flat, irrespective of which agent helps you with the deal).


  9. #9

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    May 2009
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    Quote Originally Posted by boxhead:
    It appears everything revolves around "P"

    Another followup question regarding websites - anyone know of a good website that I can use to look for HK prop? I found centaline and midland, but is there anything better?
    The alternative to a P rate mortgage is one based on the HIBOR rate, but like P rate HIBOR will also fluctuate over time.

    Only real way to find a property here is to walk around your preferred neighbourhood and call into every estate agents you see, which is often about every second shop, and tell them what you're looking for. Most of the little agents work independently, but some will ring around other small agents with your criteria to see if they have anything on their books and then the commission is split between the two agents if you buy something seen this way.

  10. #10

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    Quote Originally Posted by Beuze:
    Boxhead I don't think you can find a fixed rate mortgage here
    Posted via Mobile Device
    One certainly can (I have a fixed rate mortgage for one of my apartments) but it might or might not be worth it, given the interest rate charged, other fees, and the generally less favorable terms (higher equity contribution, etc.).
    Beuze likes this.

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