Buying property in HK

[grind king]

I will be joining Cathay as an S/O in late August. I have a few questions regarding buying property in Honkers.

1. What percentage for a down payment is generally required by the banks when purchacing? Both for a principal resident and investment property.

2. As I believe CX will only pay mortgage payments for a period of fifteen years. (Correct me if I'm wrong.) Is it best to wait until you are in your second year of housing allowance or at max allowance before purchacing?

3. What are some of the better banks or lending institutuions to deal with? Do you get different treatment if you are an ex-pat?

4. Can someone give some insight as to life on a Junk. Both from a lifestyle and investment point of view. I also have one young child.

Any info provided is very much appreciated.

[Tarboy]

1.Generally 10% for residential, 30% for investment property
2.15 years on one property – you can re-purchase.
If property prices are increasing, as they are now, buy early.
3.HSBC, Standard Chartered, No
If your kid can swim junk life is OK – if not live on land.

[idg]

I believe that you'll only get a mortgage loan up to 70% of the valuation for a 'Village house' as well.

[grind king]

What's a village house?

[SeldomFixit]

A house where village people live :ok:

[idg]

Very good SF! :D

A 'village house' is a property developed (supposedly) by sons of indigenous villagers in NT (and Lantau?) villages. They are usually 1700-2100 sq ft and of the 'spanish villa' style arranged over 3 floors with a flat roof. Sometimes they are split into 3 flats or a ground floor flat and duplex above. No parking or roadway access is guaranteed, only a pathway (so the 'villager' can drive his cattle!!). Often though they have gardens and pools.

The scheme was set up by the colonial government in the late 60's I believe to try to encourage young people to stay in the villages. The whole system of who decides who qualifies as an 'indigenous villager' is open to corruption and it is not unknown for these 'villagers' to be living in Manchester etc! They have to own the house for 3 years before they can sell it but since the government 'gives' them the land there are clearly huge profits to be made here.

Be very careful when looking into these kind of properties that the title is correct and that no further building can take place close by. Often houses are put up within a couple of meters completely blocking views etc and thus slashing values of the existing property.