Posted by
MacB
15 yrs ago
I'm lookihg at an apartment to purchase. Fits my needs exactly as a residence but it is techincally a commercial building. Some units are clearly lived in while others are offices. As it has 24 hour access and management have OK'd it for residence (unofficial I guess). I know that I can get a mortgage by setting up a shelf company. However, are there any other negative factors that I need to consider?
If anyone has experience of this I'd appreciate your advise
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The chances of you reselling this property on are very low... if you plan on holding onto it for a while then perhaps it might be worth a look.. I personally would not touch commerical to live in with a barge pole
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I found one like this in the centre of Wanchai and the asking price is below $1M for 400sq.ft., the only thing you have to consider is, lower mortgage percentage and shorter re-pay period, say 50% for 15 years or less.
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You may also want to check other requirements for your flat. For example, my friend rented an apartment like this, and due to regulations, one day workmen turned up and installed a huge neon "EXIT" sign above her front door, and an alarm with two huge bells attached to it, and emergency lights! hahahahah It was a requirement for commercial buildings to have this.
So at night time, her lounge room was lit by a lovely neon glow from the "EXIT" light!
Seriously though, any requirements that commercial buildings have to follow means that you need to follow those requirements as well, which could involve maybe more expensive water and sewage charges??? (for example...)
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You must look at the Occupation Permit, the Deed of Mutual Covenant and other restrictive covenants in the Government Lease, if any, to ascertain whether you are entitled to use it as a residence. If there is restriction, then you cannot 'legally' use it for domestic use. The vendor, in the usual circumstances, does not guarantee the user of the premises, you, as the purchaser are assumed to be aware of it. If you require further information please contact our Mr. Weir.
Weir & Associates
Solicitor & Notaries
16th Floor Tak Shing House
Theatre Lane
20 Des Voeux Road Central
Central
Hong Kong
Tel : 2526-1767
Fax ; 2868-3568
email : WeirLaw@HongKongLaw.com
www.HongKongLaw.com/weirlaw
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The other areas to think about are utilities, internet, etc. As it is a commercial building you wont be able to get domestic services. Do you have any idea how much they charge for business broadband for example!
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