[hkpatv]

Have been looking at a few apartments with a view to buy. One block in particular I have seen a couple of nice apartments however it is 46 years old. The first bank I contacted would only offer a four year mortgage (50 years minus age of apartment). I have found other banks for which that is less of a problem, but worry that when over 50 years old will be much harder to sell on. Has anybody got any thoughts or experience on that? Anything else to watch out for in older building?
TIA

[HKGuy2005]

Actually, the best value for money are older properties in HK. The 50 year rule is not an issue if you put down 30%, rather than simply the 5% or 10%. If you put down at least 30%, then the banks, in particular the medium size banks, can be very flexible. The 50 year restriction apply only because most HK banks cannot finance the portion above the 70% LTV without third party insurance.

Lastly, their are legit finance companies that can also lend you part of that 30% down payment, their terms are not overly attractive, repayment terms shorter and higher interest rate, but they do provide the additional leverage if you need it.

That being said, older properties are generally in very convenient locations in HK island, are more efficient in size (greater net to gross ratio), but simply lack all those unnecessary clubhouse facilities.

[geo-seb]

I'd recommend to check when the building's land lease expires. It is usually 50 years. After the lease is expired, it is very hard to sell the property, because the HK government can decide to have building demolished any time.

[Alby]

Originally Posted by geo-seb

I'd recommend to check when the building's land lease expires. It is usually 50 years. After the lease is expired, it is very hard to sell the property, because the HK government can decide to have building demolished any time.

I too have been seeking to purchase older properties but at the suggestion of a property agent my first stop was to the District Office so I can learn first hand what are the planning and development priorities for the neighborhoods and districts in which I am interested.

I am not a Cantonese speaker and I was able to get many answers to my questions by the district offices employees more than others but it took persistance.

You may consider the same route.