Top 5 Things You Have to Know Before Buying Property in Hong Kong
The area of Hong Kong is home to about 7.3 million people. That’s 20% more residents than the whole country of Singapore.
Don’t let the area being populous scare you away though. Hong Kong is a place that’s full of things to do and incredible things to see from the Temple Street Night Market to the I.M. Pei’s Bank of China Tower and beyond.
If you’re thinking of getting in on the hot Hong Kong property market as an expat, there are a few things you should know before you get started.
Below, our team shares 5 considerations to keep in mind.
1. Buyer Stamp Duty
If you think buying Hong Kong property is going to cost a lot as is, you’re going to be shocked when you find out about the Buyer Stamp Duty. In order to control foreign ownership of Honk Kong homes, the government imposes what is essentially a 15% tax that you need to add to your home price.
If you want to avoid this tax, you’ll need to apply for permanent residence which would allow you to circumvent your status as a foreigner.
2. Understand Hong Kong Mortgages
Hong Kong mortgages are not unlike mortgages you’d find in most countries. In Hong Kong, you’ll likely get your mortgage financed through a mortgage insurance program that will require you to put down 10% of your home’s value.
That means you can get the other 90% of your property financed.
3. Do Your Research
There is a lot to know about the Hong Kong area and the last thing you’ll want to do is jump into a property without adequately researching everything you’re buying into.
Be sure to take the time to assess the local community, its public transit accessibility, and what your investment is charging per square foot in comparison to comparable homes.
Doing your diligence is an important step when buying a home anywhere so be sure you don’t gloss over doing a thorough assessment when buying Hong Kong property.
4. You’ll Want to Work with an Agent
No matter how much research you do, you’ll want to work with a real estate agent to make sure you’re getting the best possible deal and have a full understanding of your home’s market. Note that some expats choose to forgo an agent and purchase direct from sellers.
That being said, we think you’ll have a better chance of getting good value in a foreign market if you work with somebody who’s from the area.
All agents must be licensed in Hong Kong. You can look up a directory of reputable agents on the Estate Agents Authority website.
5. It’s a Plus If You Can Really Get to Know the Area
Do you need to rush into a property purchase?
If not, check out apartments in Hong Kong and take in the area for a little bit before putting down roots. Investing in a foreign country can present a lot of challenges.
Be sure to take the time to make sure buying is right for you before jumping in.
Wrapping Up Things You Have to Know Before Buying Hong Kong Property
There you have it. 5 Things to Know before buying Hong Kong property.
Be sure to do your diligence before making a property purchase and best of luck to you finding a new home or investment property.
For more help answering all of your biggest property acquiring questions, check out our buying tools on Sky Five Properties today.