The property market continues to decline. Recently, there have been a lot of prepaid Home Ownership Scheme (HOS) housing transactions in the market. They are characterized by smaller housing lots, cheaper per-foot prices and larger areas, making them suitable for young people who want to buy cars. Apart from being cost-effective, what are the other advantages of prepaid Home Ownership Scheme housing? What should you pay attention to when applying for a mortgage?
A 455-square-foot two-bedroom unit on the middle floor of Block C of Siu Hong Court in Tuen Mun was sold for NT$3.39 million with land premium paid, and the price per square foot was about NT$7,500; a 415-square-foot two-bedroom unit on the middle floor of Block A of Siu Hei Court was sold for NT$2.98 million. The transaction was completed at NT$7,188 per square foot.
A high-rise one-bedroom unit of 338 square feet in Block B of Tsing Wah Court in Tsing Yi was sold for NT$2.75 million, or only NT$8,136 per square foot. Apart from being cost-effective, what are the other advantages of prepaid Home Ownership Scheme housing? What should you pay attention to when applying for a mortgage?
Complete facilities and low management fees
There are several reasons why so many people support the purchase of Home Ownership Scheme housing with premium paid. First of all, because many people live together, many HOS flats have complete living facilities in the area. Many of them are close to railway stations and the transportation is very convenient. It usually does not take too long to travel to and from Hong Kong's major commercial areas. Secondly, the management fee of HOS housing is obviously cheaper than that of ordinary second-hand housing, which can reduce the owner's burden on housing.
At the same time, all resale restrictions on premium-paid Home Ownership Scheme flats have been lifted. As long as the owners meet the mortgage ratio requirements, they can be rented out or sold in the free market at any time.
For buyers who focus on practicality, the price per square foot of HOS flats is generally cheaper than that of private flats. For the same price, they get more space, and the partitions are generally more practical. In fact, there is no big difference between premium-paid Home Ownership Scheme housing and general second-hand private housing. Any buyer can purchase it, and there is no requirement to hold a Green Form or meet the qualifications of a Green-White Form.
In terms of applying for a mortgage from a bank, the premium-paid HOS flats are no different from ordinary second-hand properties. Through banks, you can obtain a mortgage of up to 70%; by purchasing mortgage insurance, you can obtain a mortgage of up to 90%, with a maximum repayment period of 30 years. If the buyer is worried about insufficient income, he or she can pass the bank stress test by adding a guarantor.
If the reader is already a Home Ownership Owner and has not yet paid the land premium, he or she can take advantage of the current low property prices to apply for a land premium mortgage from the bank. If the property has been paying for a period of time or has stopped paying, the owner may still have the opportunity to take advantage of the land premium mortgage. Cash out purpose.
If buyers are interested in purchasing a second-hand HOS flat with land premium paid, the most important thing to note is whether the housing estate has completed major repairs in recent years. Since affordable HOS housing estates may generally be older, if the housing estate has not yet undergone major repairs and buyers have just become owners, they may have to pay an expense due to building maintenance.
Also pay attention to the transportation facilities. It is advisable to choose a large second-hand home ownership house close to the railway network. After all, the transportation convenience is reflected in the price. If the housing estate is not close to a railway station, has only buses or minibuses and other facilities, and is located in a remote location, it will be relatively difficult to hope that the property will appreciate in value or enjoy a higher rental return in the future.