Posted by
laiseeHK
18 yrs ago
My first post here, so please be gentle. :)
My brother in-law (non-resident) is theoretically considering purchasing a high-value property in Hong Kong (full payment) and using this asset as collateral for a 95% loan from a Hong Kong bank. He plans to invest this loan in a second property here.
In his country, he is able to do so without any limitations; at least his preliminary research suggests this, but the returns in Hong Kong, he feels, will be better.
As regards Hong Kong, does his idea make any sense? Are there any local limitations or restrictions? What are the risks that he should be aware of?
I am unable to provide him with any pertinent information, so any and all help you give will be much appreciated.
Thank you all.
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.. i think it'll be suitable for him to buy flats here in hongkong and eventually, make it rentals so his investments will grow also as well right? for example he buys a flat here in park island or in ma wan village here just beside park island with 3 bedrooms and already furnish.. he can buy 3 stories of flat then he can make other people to rent the lfat.. for example, one flat cause 6000- 7000.. not bad right.. so his 3 story flat that your brother will buy can earn exactly 18000-21000 per month.. what do you think?, its only a good suggestion.. because if only me and my husband would have a investment here we will do the same.. so we earn monthly.. at the same time we have a good investment right
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A number of international banks here in HK will allow you to acquire a second property from equity released from your first property at 70%. i.e. if you were to purchase a $10m property outright you could release $7m from it to use as the 30% deposit on your second property, therefore allowing you to purchase said second property up to the value of roughly $23.3m without actually outlaying any further cash.
If you or your brother would like some more information on purchasing property through equity release you can drop me a p.m.
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Thanks for responding!
Conservative that I am, I had advised BIL caution. He'll be glad to know that you all support his idea.
I see that Patrick Yiu has raised a very valid point -- BIL clearly isn't working here, so is there a workaround to this hurdle?
Perhaps if he opened a limited company and made the initial investment via this company? Tell me if I am speaking nonsense.
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It all depends on where he resides.
If he is in Aus,NZ or Canada he will not be able to get a loan on HK property.
If he is in US,UK,Spain or France etc then there won't be a problem with him getting a loan (from select banks) for HK property.
If he resides somewhere else let me know and i can find out for you.
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He's in Oz, s.a.gr8.
I will tell him about the offshore banking avenue.
Separately, what is the average interest charged on a housing loan, and what is the minimum and maximum repayment period?
Also, do banks here charge a penalty fee for early repayment?
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HK banks are now around 4.88% on a principal & interest loan up to 30 yrs.
A select few Int. banks in HK are offering interest only mortgages from as little as 2.24% once again up to a 30yr term or age 70.
HK banks will usually charge an early redemption penalty of b/w 1% and 3% if paid back in the first 3 years.
The Int. banks i have spoken to do not charge any fee for paying back your loan earlier then the loan term.
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Hi, I am about to make an offer for an old property (about 50 years old) which is in exceptionally good conditon (for its age) and has great renovation potential. It's in Mid-Levels. As I am a first time buyer, I am concerned whether or not I could get a high financing (given its age) (I understand DBS do a 90% mortgage on old properties) or if I rent it out, whether or not this would affect the mortgage terms at all. Any advice would be greatly appreciated.
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s.a.qr8,
Would you please let me know which banks provide interest only mortgages at below 3%. I would really appreicate your feedback.
Thank you.
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