Job Discussion Forums

[d-train]

Just wondering if you know of any expats that have decided to get a loan and buy an apartment in HK and in theory pocket the money that they would have spent on rent. I've heard that the mortgage repayments are often not much more than rent, but don't know if its actually true. Is this possible? Would you recommend this?

[once again]

All but two of my expat friends own their own property. My mortgage repayments are about $3000 a month less than the rent would be. BUT...of course this depends on how much deposit you put down to buy your property. I put a 30% deposit down, others chose to get mortgage insurance and put down only 5%. There are also fees involved when buying...estate agent, government stamp duty, legal fees. I guess it depends on how long you plan to stay whether it makes financial sense to rent or buy. Renting gives you much greater flexibilty and a lot lower upfront cost, with in theory no 'end' cost if/when you decide to leave Hong Kong. Selling a flat also incurs estate agent and legal fees.

[d-train]

Thanks for your reply. I am very curious about this. It sounds like you've done very well with your apartment. If possible, could you give me a ballpark idea of the costs involved (perhaps with mortgage insurance for a 5% deposit) of buying a place worth 2 million HKD? What is the going interest rate in HK at the moment? Also, if and when you decide to leave HK, isn't it possible to rent it out to pay the mortgage or do you actually have to sell it upon leaving?

[kowlooner]

Your price range, depending on the rate and the loan period, could be anywhere between $8,000 and $12,000 (give or take). Lots of loan calculators out there that would help you figure out your specific condition. The going rate seems to be 4-5%. Again, depends on your mortgage details. This forum really isn't the best place to get anything more than a rough idea! As for renting / selling when you leave, that's up to you. It's your property. Though most expats would likely want to sell.

[dandan]

You seem to be under the impression that HK is like some third world countries that have restrictions on foreigners buying/selling properties etc.

Actually, the fact that you're an expatriate doesn't make any difference in HK. You can buy/sell/rent/rent out as you wish, just like anyone else. It just depends on your personal circumstances as to which option may be better for you at any given time in your life.

If you want to check the costs for a particular mortgage amount just pop into a bank and they will give you the info. You can do it online if you're not in HK. Obviously your monthly payments will depend on the rate, the loan amount and also what kind of payback period you choose (10 years? 25 years? etc).

[Joshua2006]

An 85% mortgage is costing us about $500 less per month than the rent was costing.

If you can, I would. Rent seems to be soaring at the moment.

[sistercream]

You a bit bored today, Josh? I see you've resurrected a couple of old threads (and I'm reading them! - I'm having a slack day ...)
Yeah, with current low interest rates, buying looks cheaper than renting, but once the interest rate on your mortgage heads up to or beyond the 10% mark again, then where are you?

[Joshua2006]