The author mentioned earlier that there are still many property owners who still prefer "construction period" payment. There may be many reasons, such as not wanting to pay for the building in advance, which results in the need to pay rent and contributions every month, which is difficult to bear. The author also mentioned We have encountered the problem of underestimation during the transaction of second-hand properties. This situation involves the issue of underestimation of new properties. It is also a problem that many owners who bought uncompleted properties during the recent market downturn are worried about.
Although generally speaking, banks will calculate mortgage loans based on the contract price, so when homeowners purchase new properties, they generally do not need to worry about the bank’s insufficient valuation due to falling property prices, resulting in insufficient derivative mortgage loans, and the owner having to raise money to finance the mortgage loan. problem.
(Picture source: Data picture)
Instant supply during construction period solves problems
However, some media recently reported that some owners who purchased Fei Yang Phase 1 in Tuen Mun said that when Fei Yang Phase 2 went on sale, the developer had significantly reduced the price. Coupled with the recent drop in property prices, when applying for a mortgage in recent months, they found that the bank The mortgages we are willing to grant may be undervalued. In March this year, Cheung Kong Group and Sun Hung Kai Properties collaborated on the Fei Yang project in Tuen Mun. The first batch of Phase 2 price lists involved 88 units, with prices ranging from NT$3.61 million to NT$11.13 million, and prices per square foot of NT$12,990 to NT$16,438; the discounted selling price It ranges from NT$3.06 million to NT$9.23 million, and the price per square foot is only NT$11,042 to NT$13,972. Compared with the first phase of Feiyang, which was launched nine months earlier, the selling price of the second phase reached 17%; while the discounted average price per square foot of the first phase was NT$15,050. However, the low property prices are not considered low. The media recently selected some units for valuation and found that the current valuation has depreciated again compared to the valuation in April this year, shortly after the second phase was launched for sale. The decline ranged from 3% to 11%.
For property owners who have purchased uncompleted properties and are worried that the valuation will be insufficient when meeting in the future, the advisable approach is to apply for conversion to immediate supply and "lock in" the interest rate and valuation to prevent the valuation gap from getting further when property prices fall further in the future. Pull wide. The main risk during the construction period is that the bank's valuation may be insufficient when applying for a mortgage.
Falling market reveals hidden risks
But there is actually another risk, which is that when the developer delays the delivery of the property, the owner will not be able to fully estimate the price when applying for a mortgage because the property price has already accumulated a certain amount of decline. This situation was naturally rare in the past when the property market was booming; however, the current market decline has increased the risk of such a situation in disguise. Unless the developer still fails to hand over the property after extension, the buyer can kick out the lease. However, the problem is that the law does not regulate the "upper limit" on the number of extensions. In theory, disguised developers can extend extensions multiple times, while buyers are basically quite passive.