Posted by
solomani
17 yrs ago
Hi all,
With low interest rates and high rent does it make any sense to buy an apartment as opposed to renting? Has anyone done this or considered it and done some reseaech. Would love to hear any feedback on the idea.
What budget should I have for something like a duplex/house in Sai Kung as opposed to a 100 sqm flat in, say, discovery bay?
Thanks in advance.
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In the Sai Kung area a duplex is going from $4.5 M to $7.5+M, houses $9M to $20+M
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What are interest rates like and are there any home loan calculators out there for HK mortgages?
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Thanks Sai. I had a look at some of the mortgage calculators on a few websites. Like so: http://www.hangseng.com/e_mortgage/index.html
How do these work? they actually let you input the parameters even for interest rates which doesn't make sense to me. When you go to an Australian Mortgage calculator it automatically puts in the banks average interest rate and min/max years you can pick from.
While for the HK banks I couldn't see a mortgage interest rate quoted at all.
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sxc
17 yrs ago
Expect an interest rate of 2.5% currently. This is pretty much the rate that everyone gets. Some will get a slightly better rate.
The 3 factors that are important in a mortgate are:
1. Interest rate. This is quoted to you as "P-x%" (eg P-3% where P=5.5%). Different banks have different P rates, but generally they come to the same interest rate.
2. Cash rebate. This is a one off cash refund given to you on drawdown. Usually around 0.7% of 70% of the bank's valuation of your property.
3. Bank valuation. This is the amount the bank values your property at. Even if you pay say $5m for your property, the bank may only think it's worth $4m and then lend you 95% of that amount.
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Thanks for the reply.
P rate? How does 5.5% translate into a real rate of 2.5%?
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sxc
17 yrs ago
By the way, interest on your residential property mortgage is tax deductible up to a limit of $100,000 per year.
Also factor in stamp duty costs on purchase, and 1% fee to the agent.
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