Mortgage and Valuation Considerations When Buying a Haunted House
Haunted houses, properties where people have passed away, are often considered inauspicious and unfavourable locations due to their poor feng shui. However, buying and selling haunted houses is not uncommon in the Hong Kong property market, and some buyers even choose to purchase them at a lower price for their own residence to enjoy discounts. Nevertheless, buyers need to be aware of mortgage and valuation considerations when purchasing a haunted house.
First and foremost, buyers should be aware that haunted houses are often difficult to value online. Even if major banks provide online valuation services, they may not incorporate haunted house factors into their assessments, or may not show haunted house valuations at all. Therefore, it is advisable for buyers to visit the bank in person or call their valuation department to inquire about the valuation of the unit, indicating the possibility that it may be a haunted or cursed dwelling.
Buyers may worry that voluntarily disclosing the unit as a haunted house to the bank may affect the mortgage ratio, but in fact, it only impacts the valuation amount. After obtaining the valuation, banks generally approve mortgages according to the assessed value, up to a maximum of 60% of the valuation, without requiring any additional application.
In conclusion, buyers should not ignore the mortgage and valuation considerations when purchasing a haunted house. Buyers should proactively inquire about the bank's valuation to understand the actual value of the unit and be aware of the potential impact of the haunted house on the valuation amount. Finally, buyers need to carefully consider their financial situation and risk tolerance to make wise investment decisions.