[JAherbert]

Originally Posted by Simplyso

Cheers all for the response.
We wouldn't actually need a mortgage to buy but went to HSBC just for a valuation. We personally found HSBC incredibly helpful and as they would only lend up to 60% on this type of property, they've probably already built in a safeguard in case the market crashes again. A friend told us BOC make you "jump through fewer hurdles to get a mortgage" than HSBC but that generally depends whether you have an account with either bank and your account history. As I said HSBC were fine to deal with despite my friend's warning.

Hottie - I've been told the buyer will also normally pay 1%
commission to the agent but that this is negotatible.

I think the reality is that all banks take more care nowadays.

Legally, the maximum mortgage possible is 70% (yup it is a law) but havent heard anyone being granted a 70% loan in a long time.

The maximum limit 70% can be boosted by + 25% from other sources, eg the HKMC or in the case of a new development by private developers providing supplementary finance.

Still I would not purchase a property above the bank valuation, because one never know when you need to sell and the buyer would be doing the same as you.

[dougp]

Originally Posted by JAherbert

Legally, the maximum mortgage possible is 70% (yup it is a law) but havent heard anyone being granted a 70% loan in a long time.

Both HSBC and Bank of China offer 95% mortgages on their web sites - haven't tried applying for one (yet) admittedly.

[JAherbert]

Originally Posted by dougp

Both HSBC and Bank of China offer 95% mortgages on their web sites - haven't tried applying for one (yet) admittedly.

dougp,

I was wrong, I checked the ordinance, it changed. banking ordinance allows 90% for residential properties.

I bet the extra 5% is a load of some type of loan.

cheers.
John

[tt2003]

Originally Posted by Simplyso

We want to buy a new property in HK which the agent tells us is priced at HK$ 2.15 million. HSBC bank have valued it at between HK$1.5 and 1.8 million. Is it normal to have such a large difference and if so, what would be a reasonable offer. The agent has indicated that it won't move below HK$2.05 million but we're not sure if this is just a bluff.
Any insight would be appreciated.

Most agents (Every agent) are brain washed; every property in their eyes is lucrative and cheap. I have been an agent for several months; I have heard my colleagues always saying that property is cheap; that property must appreciate 10% to 20% (even 50%) in half a year or within several months. If it is really worth, why don’t they buy those properties by themselves? Then they don’t need to work anymore, be able to enter an affluent world. So, beware of what agents say and they will try to brain wash you too, do thorough research before buying. You can access government properties transaction records. Agents always harness “Greedy emotion” to trap buyers.

[KnowItAll]

Also, you really can negotiate a fixed fee with your agent, if you're a buyer. They might make you sign two agreements (one to show to the owner on how much commission you're paying, so the owner does not also negotiate them down) and one which has your real / discounted fee.

About HSBC being burnt -- excuses. They're a globally diversified bank and they do not rely on their residential real estate portfolio.

We found the Standard Chartered loan the most flexible, because we don't have to pay interest on the mortage for the cash in our savings / checking account.

I'd say a lot of the property is inflated right now.. but, as long as your on a long term game plan, don't worry too much. There will be five year up and down cycles for sure ...

[Simplyso]

Well it finally looks like we may have agreed a purchase price so can anyone recommend a good property solicitor. Preferably one who can speak/explain things in English and who has plenty of experience in dealing with brand new village house developments that do not currrently have an occupational permit.
Cheers

[jaykay]

This is one thing I love about this site, if there is anything you are unsure about you are bound to find the answer here!!

I originally made quite a lot of money and worked my way up through the property market in the UK until I got divorced and pretty much lost the lot! The less said about UK courts and awarding of property and assets the better.

After getting married again (to another woman I may hasten to add before someone comes up with a smart comment!) last year myself and my wife decided that we would come to HK, as she is a native. We rented a small apartment, luckily on the old rental agreements. We have been looking at getting a larger apartment but the rentals are crazy at the moment as landlords strive to try and make as much money as they can. Less properties are coming onto the market as those with old rental agreements are holding onto the properties they have as they can stay for another 12 months without rental increases! So we've decided to do exactly that and look at buying, possibly severing our rental agrement early should we find a place which the landlord has agreed to.

So dicussions yesterday evening, and look what comes up today in the forums! This has saved me quite a bit of time in information I wanted to find over the next few days, so a big thanks to Geoexpat and all the members!! Keep it up!!

jaykay - happier and smiling cos you've saved me some aching in my feet!

[elle]

We used Alfred Chan of S.K.Lam, Alfred Chan & Co. and were quite happy with him when we bought our place. I am not sure about his experience when it comes to Village Houses though.
Here the contact details:
S.K.Lam, Alfred Chan & Co
Solicitors & Notaries
202, 2/F, Dina House, Ruttonjee Centre
11 Duddell Street, Central
Tel: 2847 3333
E-mail: alfredchan@sklac.com

[nivantj]

Yepp.. Agree with KIA..
Standard Chartered has been quite good for even small and medium sized second hand properties... HSBC, Hang Seng and BOC all biggies dont seem consistent for second hand market.. They seem to be interested more in new developments and tie-ups with developer. Also found that sometimes you cant push them too much no matter how good is your account history. Generally, Small players are more obliged while negotiating..
Just to add on, i also got one-off solicitor's fee cash rebate from Stand Chart..

[nivantj]

JAHerbert,
You seem to be wrong about stamp duty as well...
http://www.ird.gov.hk/eng/tax/sdu.htm#11

And i wonder which lawyer charges 0.0075% of transaction value!!!