costs of buying in hong kong

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  1. #1

    costs of buying in hong kong

    I am moving to Hong Kong late next year and have a few questions about buying real estate. The quotes I am getting from the banks tell me that with a 95% mortgage on a 9 mil loan that I have to come up with almost $150k US, 1.2 million HK. Is there any way around these fees? I know I need to come up with the 5% down. The bank says that the fees for the deeds are 78,000 HK and the property agent gets 90,000 HK. Are there any way around that or is there a way for the seller to pay some? What about the stamp duty? Also can a family of 3 make it on 35,000 a month after all the bills are paid?


  2. #2

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    err... what exactly are you asking?

    The fees you are referring to sounds like what I've heard, so I do think you have to pay these. The 5% down payment are 450K HK/50000 US, I don't see where the remaining 600K HK are coming from.

    Mortgage interest rates in HK are very low if you have ~30% that you can pay down (then about 2-2.5%). If you want to get a 95% mortgage I believe you have to pay a bit more, which would give you a interest burden of 20000HK per month. Unlikely you'll have much fun living on what is left over unless you were talking about earning 35K US per month, in which case yes, that would be more than enough unless you have the most extravagant lifestyle...


  3. #3

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    The standard maximum mortgage that the bank will give is 70%. To get a mortgage above that level you have to apply to the HK Mortgage Corporation. They essentially give insurance on mortgages up to 95% of the property value. The premium you pay for this insurance can be a lump sum up front (I suspect what you have been quoted) or an annual payment. http://www.hkmc.com.hk/eng/pcrm/ourb...-1-English.pdf

    For a 40 year 95% mortgage the premium appears to be 4.58%, which would seem to fit the figures you quote, more or less.

    (Or at least I think that's how it works from a quick read of the website. I just have a standard 70% mortgage myself.)

    Last edited by PDLM; 04-12-2008 at 11:26 AM.

  4. #4

    The costs that I have been quoted are Assignment deed 40,000 HK, Mortgage deed 38,800, prperty agent 90,000 Hk. The mortgage insurance can bev placed back into the mortgage.


  5. #5

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    Looking at HSBC mortgage planner :

    9million hkd , 95 % for 30 years the down payment will be 1.3million hkd
    include the 5%, the stamp duty (337500 hkd) the agent (90 000hkd) and the insurance for the 95% mortgage ( 340 000 hkd)


    For agent it's normally 1 % of the buying price but you can try to negotiate.


  6. #6

    /what about the propert agent fee of 90,000 and the deed fees of 78,000. any way around those fees?


  7. #7

    The HSBC planner also has deed fees of 78,000. Who pays for that? Does 154,000Us or about 1.2 million hk sound right for closing on a loan.


  8. #8

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    Yes, negotiate hard BEFORE you view the apartment or confirm anything with an agent.

    Given that the number of transactions is WAY down, you'll see some amount of flexibility. Ask for a flat commission of say $40K and see what they come back with.


  9. #9

    What about living on 35,000 HK a month after paying all the bills. Basically 1200 HK a day.


  10. #10

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    Is your child of school age?

    And what the heck are "deed fees"? I don't recall paying any of them. Is that HSBC's fee for doing all the legal work? If so then you can get a lawyer to do it for less than HK$10,000.

    Last edited by PDLM; 04-12-2008 at 12:00 PM.

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