Posted by
dimac4
19 yrs ago
Just for those interested.. we have recently settled on a village house in Sai Kung - the dust has settled and I have added up all the costs associated with purchasing this house - not including the house deposits and it comes to a grand sum of 366195.46. This does include stamp duty of 272250 - the rest of the 93,945 is made up of bank fees, solicitor fees, insurance, government charges for various certificates and real estate agents commission - all of which are a set price except the real estate agents fee.
We have yet to pay for the move, apply to rent the government land and pay the management fees of where we are living (last 2 are ongoing). And pay for the difference between the tenant rent and the actual cost of the mortgage for 2 months till we move in.
So if you are buying = be sure you have at least 5% of the purchase price for these expenses in ready accessable funds!!
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I told you in the above post - about 5-7% of your purchase price - you can do the math I am sure.
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We had to mortgage property in Australia to get 100% finance. Fubon Bank came up with 70%, National Australia Bank came up with the rest based on 75% of the collateral we hold outright in Australia.
So no - we did not get more than a 70% loan on the village house.
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You may want to approach Bank of America or other American bank - also try the Australian Banks as they have facilities for US funds etc.
We essentially have 2 mortgages - one on HK house and one on Australia house.
There is also a thing called a Bank Guarantee which we looked at - this is VERY expensive and long term expenses - taking out a 2nd Mortgage was cheaper and much easier.
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The legal aspects of buying a village house can be a minefield. That apart, HSBC for example, will only lend 60% of the VALUATION. The bank's valuers always undervalue village houses to at most 90% of the asking price, so plan on having at least 50% of the cash available before you even consider asking any bank for a mortgage.
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It was interesting when they calued our place - the valuer valued it at exactly the asking price - which we thought was bit fishy as the house next door - exactly the same just sold for 2 million dollars more a week before....obviously there is some deals going on between the banks and the assesors - I won't call it corruption...
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Any tips on the current best candidate for a high-percentage loan on a village house? We're looking for as far above 70% as possible.
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