Wednesday, November 7, 2007

Starters Guide to Buying Property In Hong K ong

Want to buy a property in HK ? Here’s some starter guides to buying a property in HK :

a. Look for the property or flat that you are interested in buying. Take note of any unapproved alterations, such as closing in balconies, constructing internal staircases and even building rooftop structures as HK government does not allow such alterations.

b. Approach the bank to evaluate the property you are interested in buying for possible mortgages.

c. If the bank allows you to get a mortgage, signed the preliminary Sales and Purchase (S&P) and be prepared to put down the 5% down payment.

d. Another 5% will be paid after 2 weeks when a formal agreement will be signed.

e. The balanced is due at closing normally after 6 to 8 weeks later.

Note :
i. There are penalties for pulling out of a sale after the preliminary agreement is signed.

ii. The broker's fee generally ranges from half a percent to 1 percent of the price.

iii. The lawyer's fee varies but usually is about 6,000 Hong Kong dollars.

iv. The stamp duty ranges from 0.75 percent to 3.75 percent of the price.

v. The local banks will usually finance as much as 70% of the price, however, having mortgage insurance will allow as much as 95 percent on some purchases, with less favorable interest rates and other restrictions.