Why Own A Home In Hong Kong?
Since most of the Hong Kong territory is mountainous, there are many high places where you can enjoy watching the breathtaking scenery of the city, the islands, and the sea. Besides, there are parks and beaches that are easily accessible anytime via public transportation.
Behind the ridge to the south of the island are quiet villages favored by the affluent, of whom most are expatriates.
Options Available For Owning a Home in Hong Kong
- You can own home through the transfer of property. The transfer may be from a parent, family member, relative, friend or other sources, or
- You can own home through the purchase of a property.
Mortgage insurance program
You can apply for a loan with a higher Loan-To-Value (LTV) ratio as set by the Hong Kong Monetary Authority. In this arrangement, your deposit could be hundreds of thousands of dollars instead of millions. However, this means you have to pay a premium for the insurance. As a pre-requisite, the bank will work out your debt-to-income ratio and conduct a stress test to ensure you can pay back the loan. It is usually a 20 to 30 years commitment.
You should ensure you have money for emergencies like getting seriously ill (or paying bills for a seriously ill family member) or losing your job and also factor in the increased payments if interest rates rise.
When to buy a home
Prices of homes usually go down during crises like amidst recession or pandemics like corona and sometimes during periods when people have many expenses to take care of like school openings. Therefore, it is usually an excellent time to buy a home as people are likely to sell their properties at prices a bit lower than peak times.
Can A Foreign Expatriate Own A Home In Hong Kong?
All foreigners can own a home in Hong Kong except Afghans, Albanians, Cubans, North Koreans and Chinese from the mainland (unless they are permanent residents in another country). Foreigners can buy properties such as apartment houses and rent them out without restriction.
To cool the market and put off overseas speculation, the government has imposed an extra 15% Buyers’ Stamp Duty on foreign sales. There is also an additional duty for owning a second home and for homes resold within three years.