Restrictions on residential rentals to be relaxed from Thursday
The mortgage company suddenly took action and announced that it will relax restrictions on residential rentals starting from this Thursday (August 8). As long as the three conditions are met, even if the mortgage-to-value ratio exceeds 60%, that is, owners with high-to-value mortgages who have purchased mortgage insurance when buying a property can rent out the property according to the situation, which in turn can make financial arrangements more efficient.
three conditions
- Landlords must comply with three conditions before they can rent legally
- Otherwise, you will have the opportunity to face prosecution
The focus of this relaxation is to understand the "three conditions" clearly so that we can further analyze the impact on the overall future of the property market.
Traditional Chinese and Hong Kong mortgages
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Traditional Chinese and Hong Kong mortgages
As a professional SEO focused blogger, I have a deep understanding of Chinese traditions and Hong Kong mortgages. My task was to rewrite the existing content to present it in traditional Chinese human writing, while removing the keyword "elderly". The new content I provide must be in HTML format, with appropriate SEO structure. Include title and bullet/list HTML tags, if necessary.
New Measures: Rental of High Mortgage Properties
According to the latest measures of the securities company, owners can rent out properties purchased with high-percentage mortgages under the following three circumstances. The application process is simple, just submit an application to the bank. It is worth noting that it is still illegal to rent out a property purchased with a high mortgage rate without bank approval.
Three situations in which you can apply for exemption from the mortgage insurance plan include:
- Homeowners will have a new baby or adopt a child and their housing needs will change.
- Owners need flexible financial arrangements due to unemployment
- The owner needs to rent out the property for other reasons and has lived in the property for more than one year
These three situations are relatively simple and easy to understand, but there is a certain "grey area" in the third situation, that is, other reasons. This means banks can review on a case-by-case basis, giving owners greater flexibility.
The focus of the new measures is that property owners need to comply with the following three conditions:
- Owners cannot own other Hong Kong residential properties, and high-mortgage mortgage owners can only rent out "self-occupied" properties.
- Owners cannot rent out the properties they hold and then buy other properties "in one split"
- After the operation, the owner can only rent other properties or move back to his "parental home" to live in
These regulations are intended to prevent speculation and avoid "abuse" of new measures.
The dilemma of expanding your family
However, owners will face some conflicts if their needs change due to the birth of a new baby or the adoption of a child. Generally speaking, families want to be able to move into larger accommodation when adding family members, but with rents currently rising, owners renting out their properties may have to pay extra to make it affordable amid high interest rates Taking out a mortgage and paying higher rent to rent a larger unit will undoubtedly increase your monthly expenses.
Immigration restrictions
Another restriction is that owners must make Hong Kong their main place of residence after applying for an exemption for rental properties, which means that people who want to rent out their properties and then move or immigrate elsewhere will not benefit. This measure cannot help alleviate the pressure on property owners who want to move but are unable to sell their properties. This is understandable because many new properties are on sale and owners who intend to immigrate are likely to lose money if they sell their properties now. If the property can be rented out first, it may indirectly promote the culture of immigration. The last restriction is also intended to curb speculation, that is, owners and their spouses or common-law partners are not allowed to purchase other Hong Kong properties while the exemption is in effect. This is a measure to prevent "one for two".
The impact of the property market on financial arrangements
The author believes that the design of these conditions can indeed help some people's needs and make financial arrangements more flexible. However, I believe that not too many owners will take measures. It is more likely that the owners will reduce their expenses because of unemployment. It is more feasible to rent the property first for emergencies. There may be a slight increase in rental listings, but it will not be so large that it can cause rent levels to fall. Overall, it will have little impact on the property market sentiment.