Posted by
bawlucks
14 yrs ago
HI Property fanatics,
Im hoping to get some advice on some thoughts ive been having.
i found an apartment that i really like, that is at a very good price considering the current conditions in hong kong. however, with the new rules set by the hk government, since i am planning on buying it as a rental property for investment, i would need to pay 50%. I cannot afford to do so...
So, my question is, how possible would it be for me to get a mortgage by saying that I am living there, and then rent it out? I dont think it would be a problem with my bank. I think the main issue would come up with paying stamp duty on the rental.
Any advice on this matter would be appreciated
Thanks in advance
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I suppose you would have to move in. The HKMA release doesn't say you have to be a first-time buyer so I assume if you own a property than you can still buy another one with a 30% deposit if you intend to live there. However, you will also need to pass the bank's Debt Stress Test which restricts debt repayments to 50% of income rising to no more than 60% of income after interest rates have risen by 2 percentage points - although if mortgage loans can be extended and the figure brought below 60% that is okay. Rental income only counts at 50% of the amount recived I think (ie if you receieve rent of 10,000 per month, then only 5,000 counts towards your monthly income). see http://www.info.gov.hk/hkma/eng/press/index.htm However, I'm not sure. best ask your bank or contact the HKMA directly.
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Thanks for the advice you two!
I put an offer in and was rejected, then upped it a bit, and got rejected again. I took it as a good sign to let that one go.
I also didnt like the idea of doing a temporary move in just to buy. Ill keep waiting for the 'right' one.
cheers!
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yah, these agents didnt know the offers, or so they said, and the one property didnt have any offers yet...
when the market is this high, it's a good strategy to go into the flat and bring up every possible negative in the apartment to the owner, then lowball lol. may get lucky :)
"oh, can we open up these windows to hear the outside noise?"
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190k
14 yrs ago
Obtaining a Pecunary Advantage by Deception attract jail terms here, be very careful
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