Q&A | Q&A With Our Experts, September 12, 2012
If you are looking for a flat in a large housing estate, you could consider small flats sized 500 to 523 sqft below the 10th floor at the 6-year-old Grand Waterfront in To Kwa Wan. Flats fitting this description have recently sold for between HK$3.79 million and HK$4.1 million. Flats on higher floors sell for more than HK$4 million.
If you are willing to buy a flat in a small residential project, you could consider City 151 and Metropolitan Rise, in To Kwa Wan, or 1 Lion Rock Road and 10 South Wall Road, in Kowloon Bay. Those are the newer housing estates in the area and flats of from 470 to 591 sqft, sell for HK$4 million and upwards.
The answer will depend on many factors such as which district you want to live in, by how much you expect your salary to grow, and how interest rates and flat prices change in the next few years.
Let's assume all these factors remain constant and that you can save HK$12,000 a month. You will then have saved HK$720,000 in five years, excluding any gains from interest. Based on unchanged flat prices, a 400 to 500 sqft flat may cost about HK$4 million. You can then make a down payment of HK$400,000 and borrow 90 per cent of the flat value.
You will also need about HK$90,000 for stamp duty, about HK$40,000 for an agent's commission and HK$10,000 for a lawyer. The balance, or HK$180,000 can be used to settle other payments such as renovation costs.
Of course, it would be best to save as much as possible. You may also check if there are low-risk financial products which can help your savings grow.
