"Exclusive! Revealing the Pitfalls of Buying Second-hand Public Housing Units Without Paid Land Premiums"
Master Bank Mortgage Arrangements to Avoid Unnecessary Losses for Buyers
In recent years, with the continuous rise of Hong Kong's property prices, many citizens have turned their attention to second-hand public housing units, especially those without paid land premiums, hoping to purchase their own homes at relatively lower prices. However, before considering buying these properties, buyers need to understand some basic precautions to avoid unnecessary losses.
Firstly, for the age of the second-hand public housing units, banks usually have some mortgage arrangements. Generally, banks measure the mortgage term by "30 years minus the age of the building". If a property is within 5 years of age, buyers can obtain a repayment period of 25 years; but if the age of the building has reached 20 years, the remaining mortgage term will only be about 10 years. Therefore, banks provide different mortgage arrangements based on the age of the building.
For public housing units with an age of about 19 years or below, banks still provide a 90% mortgage with a repayment period of 25 years; if the age of the building is more than 19 years but has not reached 30 years, the bank will provide a 90% mortgage for the remaining guarantee period, and then drop back to a 60% mortgage. At this time, if the unpaid balance of the property price is more than 60% of the original price, buyers need to pay the difference. If the building age has exceeded 30 years, the bank only provides a 60% or less mortgage, and buyers need to prepare at least a 40% down payment.
Therefore, buyers need to carefully consider their financial ability and needs, and choose the appropriate mortgage term and repayment method. In addition, before buying second-hand public housing units, buyers should also understand the current situation and maintenance of the property, and consult professional opinions to avoid buying regretful properties.
In conclusion, second-hand public housing units without paid land premiums are indeed a more economical choice, but buyers must pay attention to some important issues, especially in bank mortgages. If buyers are not familiar with the mortgage term and repayment method, they may incur unnecessary burdens and losses. Therefore, before buying second-hand public housing units, buyers should try to understand the various situations of the property and seek professional opinions to ensure that they make the right decision.