The Hong Kong Housing Society is about to launch a new project, Hemma Amber. The project is located in the R2-3 area of Anderson Road. It provides 422 units, including one-bedroom to three-bedroom units. The unit area ranges from 303 to 658 square feet, focusing on two-bedroom units. , accounting for 80% of the supply units. Although the Housing Society is a subsidized housing unit with a green-white scale and a discount rate, which is similar to the “play” of the Home Ownership Scheme. The application qualifications also have income restrictions and a lottery is required to select a flat. However, in fact, the Housing Society flats are different from There are still slight differences in building quality and sales details among Housing Authority Home Ownership Scheme housing units. Interested buyers must pay attention.
In this issue, the author talks about Housing Society housing and Housing Authority Home Ownership Scheme housing. There are the following four major differences.
The housing estate has complete facilities
(1) The quality of Housing Society housing is generally better than that of Home Ownership Scheme housing units
The Housing Society is not a government organization, but a non-profit-making statutory body. Its development projects are generally "higher" than those of the Housing Authority's Home Ownership Scheme housing estates. Generally, HOS flats are handed over to Clear Water Houses, which do not come with decorations and home appliances. However, the Housing Society's new properties are ready for move-in, and basic decorations and basic home appliances are already included, so buyers can save themselves a lot of trouble. In addition, HOS flats generally do not have a clubhouse; however, Housing Society buildings may have a clubhouse for residents, providing facilities such as fitness rooms, children's play areas, and game rooms. The facilities in housing estates will be more complete than those in HOS flats. However, in terms of management fees, it may be more expensive than HOS flats.
(2) Housing Society buildings do not have government guarantees
For buyers, the biggest difference between buying a Housing Society flat and a Home Ownership Scheme flat is the mortgage situation. Since the Housing Authority will provide a guarantee period for Home Ownership Scheme housing, the latest arrangement has been extended from 30 years to 50 years.
There is no government guarantee for Housing Society housing. The resulting situation is that although buyers of Housing Society housing can also obtain a mortgage of up to 90% and do not need to purchase mortgage insurance, they need to undergo a stress test. When applying for a mortgage, buyers need to be prepared to pay Information supporting documents. (3) The repayment period of Housing Society flats can be five years longer than that of Home Ownership Scheme housing. Another difference between Housing Society flats and Home Ownership Scheme housing is that when buyers purchase second-hand Housing Society flats, if they want to negotiate a high-value mortgage, they need Purchasing mortgage insurance means you have to pay an additional mortgage insurance fee when buying a property. As for the Housing Authority's second-hand Home Ownership Scheme housing, if it is still within the government guarantee period and the land premium has not been paid, eligible buyers do not need to pass the stress test or purchase mortgage insurance, and can already apply for a mortgage of up to 90%. As for the repayment period, Housing Society buildings can have a mortgage of up to 30 years; while Home Ownership Scheme housing can only have a mortgage of up to 25 years. That is, Housing Society housing can have a repayment period of five years longer than Home Ownership Scheme housing.
Mortgage may not be fully valued
(4) Mortgage insurance for second-hand housing association buildings
Since there is no government guarantee for second-hand properties of the Hong Kong Housing Society, buyers need to purchase mortgage insurance in order to obtain a high-percentage mortgage. There may be a situation where when a buyer applies for a mortgage, although the bank can "estimate the full price", However, mortgage insurance was "underestimated", resulting in buyers needing to make up money before they can attend the meeting. The reason is that the transaction volume of second-hand housing society properties is generally less than that of private properties, and mortgage insurance companies are generally more cautious in their valuations than banks, so undervaluation often exists. Especially when the property market is relatively volatile and house prices rise and fall rapidly, it may have an indirect impact on owners who want to sell their Housing Society properties in the future.