1. Same story, different day...........year ie more of the same fiat floods the world
    Dismiss Notice
  2. There are no markets
    Dismiss Notice
  3. Week of 6/24/2017 Closing prices & Chg Over Last Wk---- Gold $1256.40 Silver $16.64 Oil $43.01 USD $96.94
  4. "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"
    Dismiss Notice

Hong Kong realtors unveil ‘zero down payment’ home lending scheme

Discussion in 'Real Estate & Other Investments' started by Scorpio, Jan 14, 2017.



  1. Scorpio

    Scorpio Скорпион Founding Member Board Elder Site Mgr Site Supporter ++

    Joined:
    Mar 25, 2010
    Messages:
    23,760
    Likes Received:
    25,309
    Trophy Points:
    113
    Hong Kong realtors unveil ‘zero down payment’ home lending scheme

    PUBLISHED : Tuesday, 10 January, 2017, 11:17pm
    UPDATED : Wednesday, 11 January, 2017, 3:14pm
    Comments: 8

    [​IMG]


    Sandy Li
    3 Jan 2017

    Hong Kong's two largest property agencies, Midland Realty and Centaline Property Agency, are offering “zero down payment” schemes to existing home owners in a bid to drum up sales, a move that challenges the Hong Kong Monetary Authority tightening mortgage policy, which is intended to temper soaring property prices.

    mReferral Mortgage Brokerage Services, a unit of Hong Kong-listed Midland Holdings, will lend up to 130 per cent of the value of a flat, up to a maximum of HK$20 million, through financial institutions from Tuesday.

    “It should be a breakthrough in Hong Kong’s mortgage lending industry,” said Sharmaine Lau Yuen-yuen, mReferral’s chief economic analyst. "We are in talks with different developers to offer this scheme for their new projects.”

    Ricacorp Properties estimated that new flat supply would climb to a 12-year high this year with a potential 33,891 units in the sales pipeline.

    [​IMG]

    With ample new supply, developers face huge competition for buyers at a time of stricter mortgage policy, rising stamp duties and likely additional interest rate tightening.
    Cheung Kong Property executive director Justin Chiu said it would offer an unprecedented home financing plan to push the sale of its soon-to-be launched luxury project, Crescendo, in Yuen Long.

    The project, comprised of 67 villas with sizes ranging from 1,500 square feet to 2,400 sq ft, is targetted at upgraders.
    mReferral’s scheme come hours after its rival Centaline Mortgage Broker announced a 120 per cent loan to value ,mortgage for its customers through the group’s finance unit.

    “We can also increase the lending cap to 130 per cent as our partner is also under the same group as us,” said Ivy Wong Mei-fung, managing director of Centaline Mortgage Broker.

    Customers of mReferral will receive a 30-year financing loan of up to 130 per cent of the flat’s value, much higher than the standard bank mortgage ceiling of 60 per cent for flats below HK$10 million, and 50 per cent for those more than HK$10 million.

    The offer only applies to buyers who already own a flat, Lau said.

    The mortgages will be provided by a finance company which is not subject to regulatory supervision by the HKMA.

    Under the mReferral plan, buyers will receive a loan-to-value ratio, or LTV, up to 80 per cent for their existing home and another 80 per cent for the value of the new flat at 6.5 per cent interest.

    This means a potential buyer of a new flat for HK$10 million would not need to pay out of pocket for an initial down payment.
    Under the plan, the buyer will receive an 80 per cent LTV of the new flat value, or HK$8 million. For a potential buyer who owns a flat worth HK$6 million, the maximum loan on this portion would be HK$4.8 million.

    Up to HK$4.8 million could be borrowed against a flat worth HK$6 million, using the 80 per cent LTV ratio. In this example, the two mortgages add up to HK$12.8 million.

    “The purchasers not only enjoy zero down payment but also receive a HK$2.8 million extra loan,” said Lau. “Our plan’s goal is to assist upgraders to trade up for a bigger flat."

    In response to South China Morning Post inquiry, a HKMA spokesman said the authority would not comment on realtors and financial firms’ lending schemes.


    http://www.scmp.com/property/articl...-unveil-zero-down-payment-home-lending-scheme
     
  2. the_shootist

    the_shootist The war is here on our doorstep! Midas Member Site Supporter ++

    Joined:
    May 31, 2015
    Messages:
    15,554
    Likes Received:
    15,412
    Trophy Points:
    113
    Occupation:
    Oxygen Breather
    Location:
    Somewhere out there!
    Hasn't this been tried in America before?
     
  3. southfork

    southfork Mother Lode Found Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    13,745
    Likes Received:
    11,460
    Trophy Points:
    113
    Yes, it worked out quite well for those who had money to buy when the bottom fell out.
     
    Goldhedge likes this.
  4. Treasure Searcher

    Treasure Searcher Gold Chaser Platinum Bling

    Joined:
    Apr 1, 2010
    Messages:
    3,990
    Likes Received:
    2,125
    Trophy Points:
    113
    Another real estate financing scam, that will not end well.
     
  5. Usury

    Usury Gold Chaser Platinum Bling

    Joined:
    Apr 1, 2010
    Messages:
    3,907
    Likes Received:
    2,962
    Trophy Points:
    113
    Reading the article, it seems like they are limited to 80% of the new purchase. The only way to get more is if you own your primary residence outright and put it up as collateral also at 60% or so of it's value. Very confusing.....and misleading IMO.
     
  6. 97guns

    97guns Gold Member Gold Chaser

    Joined:
    Jul 29, 2010
    Messages:
    1,370
    Likes Received:
    1,083
    Trophy Points:
    113
    Gender:
    Female
    Occupation:
    RETIRED
    Location:
    USA
    Looks to me like the ballon is approaching its limits, don't know how much more air it can handle
     
  7. Usury

    Usury Gold Chaser Platinum Bling

    Joined:
    Apr 1, 2010
    Messages:
    3,907
    Likes Received:
    2,962
    Trophy Points:
    113
    Yeah no doubt...I keep thinking everything (all asset types) are going to crash everywhere all at once. In the back of my mind I hear this nagging voice asking why they REALLY let Trump win....hmmmm. That's why I'm not comfortable going all-in in the market's just yet. I think there's a lot of money sidelined right now, not in any particular investment vehicle. We'll see...hopefully it's just all paranoia after 8 years of OBlunder. I suppose the smart ones have a few preps and PM's just in case.
     
  8. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    132,158
    Likes Received:
    38,250
    Trophy Points:
    113
    FWIW.............

    HONG KONG PROPERTY MARKET ABOUT TO CRASH - Bubble About To Burst?
    Elite NWO Agenda



    Published on Jul 16, 2017
    HONG KONG PROPERTY MARKET ABOUT TO CRASH - Bubble About To Burst?

    It was in February of 2016 when, looking at the latest trends in the Hong Kong housing market, we wrote that in January [2016] Hong Kong home prices tumbled the most since July 2013, and after a 12 year upcycle, prices were now down 10% from the recent peak just four months prior... while the local Centaline Property Agency estimated that total Hong Kong property transactions at the start of 2016 were on track to register the worst month on record.

    Fast forward to today when that particular blip is long forgotten, swept away by the record credit injection unleashed by China in the interim, which has spilled over into the Hong Kong's housing market where instead of concerns about a bubble bursting, the locals are preoccupied with chasing the latest, and biggest yet, housing bubble to form in Hong Kong, as crowds of people line up in hope of being the winning bidder for one of several properties for sales, some of which are oversubscribed as much as 15x. According to the latest data from Hong Kong's Centaline Property Centa-City Leading Index of existing homes, prices have risen an unprecedented 23% in the past year, setting new price records week after week. Over the past decade, home prices in the financial capital of Asia have tripled. snaking queues of thousands of prospective apartment buyers in Hong Kong signaled authorities have made no progress in cooling a red-hot property market, where prices are at records.

    At the Victoria Skye, a luxury project at the former airport site of Kai Tak and at the Ocean Pride development by Cheung Kong Property Holdings people were lining up on Friday and over the weekend for their chance to buy a home at all time high prices.

    K&K Property has offered an additional 200 units at Victoria Skye after it sold 306 flats on Saturday, Ming Pao newspaper reported. Cheung Kong will put another 346 up for grabs after selling 496 in a single day, May 26, it said. In both cases, the developers will raise the prices of the additional units by about 2 percent, the newspaper reported. hong kong economic times

    It is also obvious to the local central bank, which, however, like Vancouver and Toronto, appears powerless to halt the of hot mainland money. The Hong Kong Monetary Authority has been tightening rules for lenders, Bloomberg writes, including restricting levels of lending to developers, as it tries to limit financial risks and take some of the heat out of the market.

    And yet, so far the result is absolutely nothing as nobody bothers to listen to the growing warnings.

    Speaking at a Legislative Council meeting last Monday, Hong Kong's central bank chief, HKMA Chief Executive Norman Chan, said levels of demand were reminiscent of 20 years ago, just before Hong Kong suffered a property bust, and he expressed concern that people with limited financial resources were buying just because they thought prices would only keep going up, just like in a bubble.

    Chan said that while the global economy has improved, uncertainties remain and warned that when the property cycle reverses, "the impact will be serious."

    I ask the question because, as the chart shows, one thing is different from both 1981 and 1997. It is that the underlying cost of money, as best represented by the US 10-year treasury yield, has come steadily down since 1981 and still defies expectations that it will soon rise again. How it happened is a simple story. Our interest rates are tied to US rates through our peg to the "hong kong" property "home owner" flat apartment "hong kong property" "hong kong apartment" home mortgage "property prices" investment buyer "home buyer" asia "asia property investment" loan "home loan" rent "hong kong rent" rental market markets price "market crash" "property bubble" crash invest "invest overseas" life living lifestyle banking currency forex "forex trading" income job "mortgage rates" bank savings "savings account" couple family marriage US dollar and it so happened that in 1987 control of the US Federal Reserve board fell into the hands of a private statistics consultant with political ambitions, Alan Greenspan. gold silver bitcoin

    [Former Federal Reserve chairman Alan Greenspan kept his job by frequently reducing interest rates to prop up financial markets. He engineered a policy of reducing interest rates every time there was a scare in financial markets, thus ensuring both that these markets quickly rose again and that he retained his job through several presidential administrations.

    The result has been severe inflation in financial markets, growing wealth disparity around the world and economic growth suppressed through skewed allocation of capital.
     
  9. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

    Joined:
    Jan 7, 2011
    Messages:
    11,265
    Likes Received:
    8,886
    Trophy Points:
    113
    Location:
    Florida
    Zero down with cash back? That's called rent.
     

Share This Page