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Buying apt guide for non resident HK investor
Posted by HKPropertyInvestor (283 days ago)
I am a foreigner not resident in HK wanting to buy a MidLevels property. Got general info reading various threads but is there a website guiding a foreigner regarding agents, mortgage criteria by local banks for foreigners, etc.?
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Posted by walkup (282 days ago)
I am sure someone one day will put a comprehensive website together but in the meantime I think you will have to make do with the threads. Re the two points in your message
1. the agent fee is 1% to the buyer
2. mortgage valuation of property is set by the bank and can vary from bank to bank
and a foreigner taking out a mortgage will be asked to provide proof of income (payment slips) and proof of residence (utility bills)
Posted by drumbrake (282 days ago)
Regarding agent fee - everything is negotiable. 1 % is the standard rate, but you can ask for a discount.
I don't think the regulations are much different for foreigners than from HK residents. Basically you have to show income proof if you want a mortgage.
Search on google for HSBC + HK + mortgage or for other banks such as DBS / BEA and you will get a lot of information about the actual process.
Posted by HKPropertyInvestor (282 days ago)
thank you. do u know what is the general difference between valuation set by bank and the price at which you transact? also, is hsbc best bank for mortgages? or should i consider icbc/stan chart? finally what is a good site for property listings for mid levels?
Posted by drumbrake (282 days ago)
Bank valuation will determine how much money you can borrow on the mortgage. The bank valuation can be higher or lower than the actual price you pay.
HSBC are ok for mortgages, but often smaller banks can give a slightly better offer. Shop around and see who seems best at the time you buy.
Posted by walkup (281 days ago)
HSBC seriously under-value old Chinese buildings which is not a problem if you want a small mortgage relative to the purchase price, otherwise Bank of China have been reported offering a higher mortgage offer. For mid-levels it depends what you want and what is your budget but you should visit estate agents on Caine Road, Mosque Street and alongside the Escalator. Online see asiaxpat listings and others.
Posted by pebbles1 (276 days ago)
Hi HKproperyinvestor, as a non-hk resident banks will lend you only 70% of the value of the property/purchase price - depending upon the bank, with standard conditions applying ie proof of income etc.
I know a company that handles all 30 plus banks in HK for mortgages & used them myself as well as referring others to them. They are excellent! They get you the best rate for your criteria & know which banks value properties higher etc They do not charge you a fee for using them as they get paid by the bank direct. As they have all banks on their books it's great as you don't have to do all the research yourself & they are not limited to only a panel of lenders.
PM me if you want their details.
Posted by HKPropertyInvestor (275 days ago)
thank u walkup, drumbrake and pebbles1 for your advice. still getting a feel for midlevels pricing and rentals that i can get. however, would like to get the company info from pebbles1. i live overseas. how should i contact u?
Posted by walkup (274 days ago)
HKPI, in order to get a feel for mid-level property prices, there is no substitute for using up shoe-leather and having a clear (but flexible!) idea of what you want and your budget range....oh, and moving fast when you see the right place if you find something special. It is very difficult doing this from overseas particularly if it is your first purchase in HK.
Posted by cwglin27 (192 days ago)
Hi, I'm in a similar situation - as a non-resident investing in HK properties. Am currently stuck with mortgage financing - anyone know any bank/finance companies cover more than 70% - any clever ways? Appreciate if I can get the mortgage broker contacts too - always good to get someone local to do the searching..
Posted by marcusboy (192 days ago)
Hi cwglin27,
I was referred to a mortgage broker and will be confirming my loan with a bank inntroduced by them. I must say it is convenient as they know which bank has the most attractive rate etc. It did save me a lot of time and leg work. Once you give them a copy of the preliminary agreement you have signed, and inform them your intended percentage of loan you require, they will source the banks for you. Very efficient. Send me an email if you wish to know the number.
Posted by gasgal (178 days ago)
Hi MarcusBoy,
Please pass on your mortgage broker details to us ... I have just spent 2 full days on the phones to every bank in Asia and then some....and also which Bank and the deal... Come On... Share the Love.... I really want to get 85% + loan on a HK Residential Investment property, Old Building, Walk Up ... etc... you know ... all the ones the banks HATE... (even though they return double the yeild to Sun Hing Ling Ding properties)... But Hey! What do I know...Also... A Bank that employs a realistic valuer!!! So we can get 70-85% of something rather than 90% of nothing....
Help Appreciated..
Posted by Boof (178 days ago)
pebbles1
Would you mind PM'ing me your brokerage contact who deals with the numerous banks? I live in HK and find the whole mortgage shopping process too laborious. Your help would be greatly appreciated.
THANKS!
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