Traditional Chinese concepts and Hong Kong mortgages
In Chinese society, raising children to provide for old age has always been an important value. However, with Hong Kong's current high property prices and declining fertility rate, this concept is no longer the goal pursued by young people.
In recent years, as the housing market has fluctuated, people have begun to question the effectiveness of buying property as a way to protect against aging. Due to high mortgage rates, many people are facing the dilemma of not having enough rental income to pay their mortgages.
The Current Situation of Hong Kong’s Mortgage Market
- High property prices have made it difficult for first-time homebuyers to afford homes.
- Mortgage interest rates continue to rise, increasing the burden on lenders.
- Rental income is not enough to pay the mortgage, leading to an oversupply situation.
Conclusion
In the current economic environment, traditional Chinese concepts and the Hong Kong mortgage market are facing many challenges. Young people should carefully consider their financial situation and choose a property purchase method that suits them to ensure their future quality of life.
Why are more and more people applying for retirement mortgages?
While it’s impossible to predict the future, buying a property as a precautionary measure is still a smart choice. Real estate assets can be used to secure a source of income in retirement through retirement mortgages. According to data, there were 780 elderly mortgage applications in the first nine months of this year, an increase of 50% compared with the same period last year. From 2021 to 2024, property prices have dropped significantly from highs, and the number of elderly mortgage applications has reached the level of 800 every year.
Apply early to lock in the property price
One of the reasons is that many property owners hope to apply for a retirement mortgage as early as possible to lock in the current property price and ensure they have stable living expenses. In the past, property prices have been rising and the market is confident in real estate. Therefore, many elderly people do not consider or delay applying for a retirement mortgage when they retire.
Hong Kong’s overall population is aging
Homeowners who need to apply for an elderly care mortgage are of a certain age. When they no longer expect property prices to increase again in the short term, or begin to feel uneasy about the current cash flow level, they naturally have a more urgent need to apply for an elderly care mortgage as soon as possible.
Hong Kong Mortgage Loans: Why Apply for a Senior Mortgage?
One of the reasons for applying for an elderly care mortgage is related to the overall aging population in Hong Kong. According to data from the Hong Kong Census and Statistics Department in 2023, Hong Kong's population will continue to age at present and in the future. The population aged 65 or above will reach 1.45 million in 2021 and is expected to rise to 2.74 million in 2046. The number of people applying for elderly mortgages will also increase. The general trend is the general trend.
Elderly considerations
- Under the current property price level, the annuity you can get by applying for a retirement mortgage is enough to cover your retirement life.
- Applying in advance is a safer option.
Young people’s considerations
Buying “bricks” to protect against aging involves long-term future planning. Although property prices may fluctuate at certain times, assets will eventually return to value. Planning for your future is never a wrong choice.