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CASH on property buying Posted by arlina (214 days ago) I have read some advises and questions regarding Find what you are after in our Hong Kong A-Z Directory  Posted by walkup (213 days ago) One of the key issues for you to consider is the gap between value of the property as determined by the bank and the selling price. There is zero chance that you will find a 100% mortgage on the sale price borrowing the money exclusively in Hong Kong. eg If the selling price is 3 million and the bank valuation is 2.5 million then you will need not only to find the .5 million yourself but will also need the cash for the stamp duty and legal fees. For old Chinese buildings this gap can be substantial. For newer buildings the sale price might = the valuation price, so if you want a loan near the selling price then keep to newer building searches eg Windsor House where the gap between sale and valuation price last November I looked at an apartment was only 200k. Posted by associates (210 days ago) Typically you will need a deposit; your income and net worth will determine the amount a bank will require as a "ratio" of lending to value of the property. Often a bank will give you a "re-decoration" loan to assist the upgrading BUT this is meant to be tied to actual bills paid for redecoration. There is also the possibility of getting a personal loan to assist on funding the purchase HOWEVER.......a bank often requires that YOU have the down payment from your OWN resources. This is effectively part of their credit check on you and your ability to repay the they will give you; if you are 100% financed then you are less likely to pay the money back....this is the basis of the sub-prime fiasco we are yet to see in full. Posted by walkup (210 days ago) one way to 'play' is to release capital on a property back home by remortgaging assuming one has capital to release, but associates is right that any HK bank wants some financial commitment. In the current market where flipping for a quick profit is a possible option many buyers may want an 'in', but as the T-shirt says: 'no money, no honey'. Posted by Hammerhead (206 days ago) Can someone care to enlighten me... Posted by walkup (197 days ago) Assuming you are able to raise a loan and comfortably make repayments from your monthly salary and are committed to keep the property for a minimum of 2 years then take the HKD loan if that is on offer. Less than 2 years, then pay cash. Other options are purchasing a more expensive property with both cash and loan funds or even purchasing 2 properties: one for residence and one for rental investment. Posted by DaHKGKid (196 days ago) You may apply for a high ratio mortgage through any major bank in HK however it is always your ability to repay the loan that is key. The bank as discussed above may undervalue the property so this key. If you go after 95% loan, 5% down then the bank would need to submit to Hong Kong Real Estate Authorities for review and approval and if yoiu pass this you may be eligible for only upto 20M HKD and have the income to support it. |
