Posted by
Yin_Chow
16 yrs ago
We are looking at buying a property. Can anyone tell me what are the pros and cons of buying in HK? We are looking at a HK$8mill property and have 20% deposit. Are there any other fees and charges? Are there any tax benefits in buying (as there is in renting)? Also, how long does it generally take for settlement? Any advice would be great.
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DA
16 yrs ago
few years since I bought but this is what i can remember:
Other fees: the big one, government stamp duty... I think at that level you're looking at 3.75% (unless the rate has changed), agents fee 1%, legal fee - this can vary depending on who you use - i think ours was less than 10K.
Yes there is home loan interest benefit from your income tax - I believe its valid for 7 years once you choose to enjoy tax savings from your mortgage interest payments.
Time for settlement depends on the two parties involved - I remember we negotiated a price in early June, signing the initial agreement and took the keys in mid August.
Pros and cons are same as holding property elsewhere - it becomes your home and you can do what you like with it, you are not a slave to the landlords and their greedy rental increases - on the flip side you are exposed to interest rate fluctations (in particular what the US do), you need to pay maintenance etc.
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DA thanks for the info. I will look into things further and do my calculations before jumping into anything, but it's great just to have the simple figures to play with first. MrCynical - we are looking at living in it ourselves and then maybe a few years down the track, rent it out. But no solid decisions at this point. We are trying to weigh up if it's a better option to stay renting or buy something. but thanks for your help.
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190k
16 yrs ago
"Cons:-monthly payment fluctuates"
I got my mortgage with fixed monthly payment so when the intrest rate goes down the repayment period drops. I started off with 20 yrs mortgage in 1997 and it went down to 14 yrs by 2005 Killed off loads of principle in the process and now I have been able to restructure the repayments back to the 20 years but my monthly payments are $10K less.
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Ah yes, but you are still underpaying your domestic helper. Why?
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Sorry to ask a question on your thread but is that 3.75% government stamp paid on the total purchase price? I was also thinking of buying. Moving back to HK the end of August and hate wasting money on rent. But I will need to look at the risk when I get there. I was told by a friend that their morgagae payment is higher then what they rent for and she said many landlords are in the same position right now, have rents dropped a lot in the past 2 years? Maybe it would be wisher to rent than buy as I wanted to buy and sell for a fast profit in 2 years, is anyone else know much about realistate market in HK or have a number of someone who could help me with further questions?Thank you
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LGMV, I think HSBC will not extend loans beyond 30 years.
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It is fixed alright, but if interest rates go higher, HSBC will only extend your "T" in (I=PRT) up to 30 years meaning your monthly payments will not remain fixed.
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agree with punter. i just agreed to a fix installment plan with hsbc as well as i specifically asked for this. indeed the max is 30 years
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