The government announced a comprehensive "removal of hot spots", and the transaction data immediately improved significantly. The sales of several new projects were also very satisfactory, reappearing the "one-Q clearing" situation. The property market atmosphere has finally warmed up. Many of the more experienced investors around me have expressed their intention to enter the market in the short term after the hot news about the withdrawal came out. Some of them are even more aggressive and plan to make a fortune by "touching goods". However, later on, news came out that many banks, large and small, would not accept "touch goods" mortgages. For the younger generation, they may not know what "touch goods" is, and why banks are unwilling to provide "touch goods" mortgages. What about mortgage undertakings? Let the author explain it to the readers.
The act of "touching goods" was very popular before the 1997 financial crisis. The word "confirmor" in English means that after the buyer signs the sales and purchase contract and before the specified completion date, he transfers the property rights to other buyers at a price higher than the contract price, so that the original buyer can temporarily Making profits during the transaction.
Was popular before the 1997 financial crisis
"Buying goods" was very popular before the Asian financial crisis in 1997. It was very common for a unit to be transferred three or four times before the transaction date. According to reports, the most exaggerated example of purchasing goods that year was that a unit could be transferred up to 14 times. A property is transferred frequently in a short period of time, and each transfer is usually higher than the original price. Such short-term speculation will naturally help stimulate an increase in property prices. For example, Mr. Chen (pseudonym) bought a unit for NT$4 million. After signing the sales and purchase agreement and paying the deposit, he transferred the equity to another buyer for NT$4.5 million before the completion date, successfully earning NT$500,000 on his books. Price difference.
This kind of short-term speculation was not directly cracked down by the government until 2010. The then Financial Secretary, John Tsang, implemented that he would not allow buyers of new off-the-plan properties to cancel the transaction on the grounds that they nominated the buyer; otherwise, the buyer's deposit would be forfeited and the forfeited deposit would be doubled. Later, the government added additional stamp duty (SSD). If the property is sold within a short period of time after purchase, stamp duty will be paid, which is one of the spicy taxes. With banks refusing to underwrite mortgages for "touch goods", it means that buyers can only complete property sales with full pay. If the buyer is unable to pay in full, he will have no choice but to cancel the order and lose the deposit and other fees. Although Hong Kong's current economic situation is stable, and there are rare cases in the market where buyers are unable to repay and cut off their mortgage payments, banks are still unwilling to provide mortgages for "touch goods", which naturally has their own considerations.
Banks cautious about market outlook
The author estimates there are three reasons. First, banks may be affected by the government's stance on the property market. Although the government announced the "removal of spicy food", it does not mean that it encourages the trend of short-term speculation to spread again in Hong Kong. Therefore, shortly after the hot spots were withdrawn, it was reported that banks would not accept "touch-and-mortar" mortgages. The purpose was to prevent the hot short-term speculation atmosphere from causing significant fluctuations in the property market. Secondly, banks are very cautious about the market outlook and are unwilling to take more risks. The third reason is that the entire trading procedure for touching goods is complicated and has disappeared from the market in the past ten years. Even if banks are willing to implement it, it will take time to review and review the details.