Posted by
jele
17 yrs ago
Hello,
I am a foreigner with a house allowance of 55K per month.
My house contract is finished and I was about to sign a new one when I had an idea.
Why not buying a house?
We should stay in Hong Kong 2 years more (but perhaps more).
I need to borrow 100% of the amount (with all the fees included).
The idea was to sell the house when I will leave HK, so lets say in 2years.
Of course, I will have to reimburse the bank. Are the fees important during that kind of transaction?
Do you think I will be able to get some money from that transaction buy-sell-reimburse?
I don't want to spend my time, running from one bank to the other. Is there any company who can handle everthing for me? Is it expensive?
Thanks for your help
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it is unlikely you can borrow 100% of the amount which is why not everyone buys here. 95% is possible but you pay a premimum for the mortgage insurance indemnity.
I think the easiest way to see the breakdown of all the charges is to look up mortgages on the HSBC website - it tells you how much you will need for everything apart from solicitors fees (around 5-10k).
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There is 1 outfit that does 99.9% mortgages.
I forget the name but look in the Hong Kong Magazine advertising LTV something or other.
r
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also talk to a broker at
info@lfsbrokers.com
they know a lot of banks
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Ken A
17 yrs ago
As mentioned you can't get 100%. I just bought my apartment and got a mortgage from Standard Chartered (95%) who can actually arrange for the Mortgage Insurance Premium and tack that onto the mortgage repayments too.
However, I still had to have the initial 10% deposit. After you get your mortgage though you will get the other 5% back (and that should be enough to cover most of the other fees - at least those that you can pay after the formal agreement has been reached).
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Ken A
17 yrs ago
On the other hand, I was told the same thing a year ago, that it wouldn't be a good idea to buy because HK house prices were so high. A year later all its done is result in me paying a higher prices for a house than I may have done last year. Obviously the US markets are a warning but I'm just saying its hard to predict the future.
As for cheap rent - if the OP is anything like me and many others in Hong Kong in that I want to live somewhere that I'm happy with (in terms of size, location and quality). Whether you rent or buy that place is likely to be almost similar in those aspects. Its not as black and white as saying go find somewhere cheap to rent.
Let's say they're looking to buy in Mid-levels. They find a place that's say 6 million to buy over 25 years. The mortgage payments for that building in the coming year will in most cases be lower than rental prices in mid levels for a similar building. Sure they could move out to the New Territories and find a similar sized flat for cheaper, but then there's the other issues associated with that.
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To buy or not to buy is a preference. As an agent of course I will agree with the saying rent money, dead money. You can always find something within your budget in Sheung Wan and at the end of your stay you can become a landlord & let your tenant paying your mortgage.
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