[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.

[JAherbert]

hi,

I would check with other banks in the first instance, e.g. Bank of China, and ask for their valuation.

HSBC is not a great choice, don't forget they were burnt - big time during the finanical crisis, and caution has ruled since.

If the BOC valuation does not cover, say within 5%, the offer price personally wouldn't touch it. Many property owners still suffer negative equity and try to demand higher that the true market value.

I know one landlord that paid 2.4 mil for 700 sq ft a few years back, he wants to sell now, but is asking way more than the market value because of his outstanding loan.

[tstexpat]

Avoid BOC. These guys are the worst to deal with. HSBC and Standard Chartered are easier to deal with.

[JAherbert]

totally disagree with tstexpat.....BOC were very helpful for my case, I negotiated a very competitive interest rate, and BOC provided 1.5K cash back. The only downside I must say was the higher than average penality for early repayment, but seems very common accross all banks here.

[hottie]

Hi,

Can anyone tell me briefly the charges for buying and selling properties in HK eg stamp duty, estate agent's fees etc.

We have just seen the excellent mortgage rates and wonder if it worth buying instead of renting.

Hottie

[rani]

Simply,

Also, check what the latest buying/selling transactions have been for the building.

http://www.centanet.com/ctline/owa/ctline_trane

[JAherbert]

mortagage is presently cheaper than rent, earlier this year I paid:

estate agent fee: 1%
laywer fee: 0.0075%
stamp duty (> 1million) : 0.0075%
other govt fee: $500
bank charges: $150

[hottie]

Wow so you pay agent's fees on buying!
Is it the same percentage to sell too?

[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.

[JAherbert]

Originally Posted by hottie

Wow so you pay agent's fees on buying!
Is it the same percentage to sell too?

both the buyer and seller pay estate agent fee 1% each