Mortgages on "Haunted Houses": Is it Reasonable?

Exploring the Definition of "Haunted Houses" and Risks and Considerations of High Ratio Mortgages

In recent years, Hong Kong's property market has remained high, causing many people to look for ways to afford a house, including buying properties known as "haunted houses." However, what exactly are haunted houses? And can you get a high ratio mortgage for them?

There is no clear legal definition for haunted houses, but generally, they refer to properties where unfortunate events have occurred, such as suicides, murders, and the like. Many people may understand why haunted houses are considered ominous in Chinese culture, as they can affect the fortunes and health of the occupants. However, for those who are not concerned about supernatural events, haunted houses may be priced 20-30% lower than other similar properties, making them more cost-effective.

If you are considering buying a haunted house, can you also consider getting a high ratio mortgage? While some cases have successfully obtained high ratio mortgages, it does not mean that everyone can do so. Here are some things to keep in mind when buying a haunted house and applying for a high ratio mortgage:

First, banks will not provide additional incentives or adjust loan interest rates or increase mortgage amounts just because the property has an unfortunate history. To apply for a high ratio mortgage, you must meet the bank's loan requirements, such as tax, income, and credit ratings. Otherwise, your loan application may be rejected.

Second, buying a haunted house requires consideration of resale risks. The term "haunted house" itself suggests ominousness, making it difficult for many people to feel at ease. If you plan to sell the property in the future, the haunted house may be harder to sell than regular properties and may be priced lower than other properties in the area, resulting in a loss on your investment.

Finally, it is essential to be aware of supernatural events when buying a haunted house. Even if you are not concerned about such events, if your family or roommates are, it may affect their health and mental well-being negatively. Therefore, before considering buying a haunted house, discuss it with your family and roommates to ensure they will not feel uneasy.

In summary, whether or not you can obtain a high ratio mortgage to buy a haunted house depends on your individual circumstances and the bank's loan requirements. If you are confident that you can pass the loan application and are willing to accept the risks, a high ratio mortgage may be a feasible option. However, do not forget to consider the above-mentioned risks and be prudent in assessing your investment risks.

In Hong Kong's competitive property market, finding the ideal house is not easy, but by carefully considering all options and making wise decisions, you can find a home that suits you.