I have been looking to buy a flat and the property agent showed me a great palce (completely renovated) that I really like. It is only afterwards that a friend told me it is illegal to "live" in a commercial building - I guess that makes sense!
I questioned the agent and he then mentioned that I could "work from home" etc. I am tempted as it's exactly what I'l looking for, but can anyone give me the downfalls of such a risk or if it's quite a common practice. I could actually run a business (in name only) out of the property.
Thought?
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resale potential??? You also may not be able to get a loan on the apartment.
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One danger is that someone will tip off the authorities (security guards, furniture delivery boys, TV or phone installation engineers, meter readers etc). But the odds are on your side, as locals don't usually meddle unless it's to their advantage.... they don't have the western idea of grassing up their neighbours "on principle".
The others are a criminal record, inability to sell it, and what happens if there's a fire at night.
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I live in a semi-commercial building which is quite run-down itself, but my apartment is completely renovated. On my floor there's an apartment that's an office by day and a residence by night. There's also a so-called spa next to me that looks more like a money-laundering operation. Maybe it really is just a cheap massage parlour and I'm being cynical.
Living in a commercial building like mine is no fun, especially if there's a restaurant somewhere. The grease is appalling on some floors. My building has all these unsavory types coming in and out, talking and banging doors loudly, and each person has his agenda. The volumes of weird people who come into my building are enough to make me want to move.
Think twice unless your building is well-kept with no restaurants and questionable businesses.
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gwern
17 yrs ago
Can you tell me what you decided in the end....I have been offered a brilliant 'office' space to buy that fits my budget and needs. I like the area as it's not seedy and becoming rather trendy and funky. Everything looks good, especially with the rental market going throuigh the roof at present. I was shown many 'office' apartments and I know that loads of buildings do this and nothing seems to happen to the tenants...and it's been going on for years successfully,
and the tenants I met in the lifts seem very open about it. However I do know that there is a risk of being found out and kicked out. If I buy and renovate I guess I run that risk. What I want to know is
1. How much of a risk is it? I can speculate as much as the next person but I want to know for sure...any examples of it happening to you?
2. What would the house/contents insurance be...can it be insured?
3. How can I find out if this change in usage can be done leagally?
I would appreciate any thoughts and especially help on this.
Many Thanks
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gwern
17 yrs ago
Thank you walkup2...You sound like you know what you're talking about....please could you elaborate as I don't really understand what you mean...are you saying that I could claim that it is both commercial AND residential but if I stop using it as a residence I just have to let the bank know?
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ldavy
17 yrs ago
You can't "claim" it's anything. The usage of any building, and all units within that building, are specified by the government.
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It would be commercial usage only, there'd be no request to change it back to commercial usage because it's status will not change. To change the usage the whole building would need to be reclassified by the government and as the licensing goes through several departments it could take years to do. So far no commercial property has ever changed to residential use.
Now that's not to say that other usages do not happen because clearly they do. Many old industrial areas which are classified as industrial are now used and leased as offices. This is also illegal but are overlooked. However this could have implications in regard to insurance, etc. There was a great article written around 6 month ago that explained this in great detail.
So to summarise, it's your risk.
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gwern
17 yrs ago
Apparently Chung King Mansions in TST is classed as a commercial property but is full of flats....does anyone know if this is true?
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as far as i know, its not a big prob to live in a comm bldg, many in sheung wan & wanchai are of these, in fact im looking to buy & live in one also, the only prob i see is the guards put down those metal shutters during the night, i thnk frm 7-9pm to 6-7am but just bang on the door & they will let u in, unless thyve gone walkabts! its much cheaper that a residential place for sure. oh the mgt fee are double of resi flats, not sure why tho but it wrks out cheaper all round anyways
hk2mill for a 600sft, 19yrs old, on 22f, vgc, 2flats per floor, 5mins frm mtr, 10mins frm central - tell me that not a deal or what!!!!! not much of a view but who cares? no one is gonna stand ard & admire the view anyways.
if i want a nice view ill take a tram to the peak instead eh?!
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ldavy
17 yrs ago
Chung King Mansions definitely has people living in it and definitely also has commercial use. I don't know what classification it has but suspect it's commercial.
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