From a tiny commercial center, Hong Kong has developed into one of the globe’s top three economic hubs. Hong Kong remains a desirable location for foreign entrepreneurs including Indians even if rates hit historically elevated levels. Given that it has easy buying procedures and the cheapest levies in the world, it is not surprising.
It’s crucial to educate yourself about the market, the purchasing procedure, rates, real estate taxes, and other factors before participating in the Hong Kong real estate market as an Indian citizen.
Process of buying a property as an Indian
There are no limitations on Indian individuals or businesses purchasing real estate in Hong Kong. But before beginning the purchasing process, a few procedures and requirements must be considered.
First and foremost, you need to be aware of your financing alternatives.
Applying for a mortgage
You should get in touch with a few institutions in Hong Kong to determine if they can assist if you require a housing credit.
Indians typically have no trouble obtaining loans from regional banks. Banks don’t mind about citizenship or place of residence. However, they are interested in the kind of residence you plan to purchase and your investing objectives. The bank will also ask you about your place of employment, which ideally is Hong Kong.
If you utilize the land for personal purposes, banks like Standard Chartered typically give estate credit financing up to 50% of the original cost.
When requesting a property loan, an Indian person must provide certain documents, including:
- Passport;
- Financial statements; and
- Past tax details.
Locating a realtor
It’s necessary to hire a broker once your funding is in place and your mortgage has received pre-approval. When you’ve identified a broker, make sure they have good experience and are fluent in Hindi, Cantonese, Mandarin, and English. Today, at least with overseas purchasers, the most popular method of finding realtors is the internet. There are already approximately 40,000 agencies licensed in Hong Kong and no doubt many of them are Indian, so you’ll no doubt find lots of professionals there.
Hire a real estate lawyer
To assist you with documentation filing and other regulatory duties, contact an estate attorney. Contractual terms are frequently drafted in a legalistic manner. B hiring a lawyer, you can lessen the chance of running into traps later. The attorney can assist you in several ways, including helping you communicate with the owner and checking the legal title to see whether there are any loans or other liabilities on the land. When the land transfers into your name, a real estate lawyer will assist you in completing the transfer procedure.
Ultimately, an estate attorney will participate in some steps of the procedure. Although it could cost you a little extra upfront, the amount you save in the long run will be significant.
Verify the title deed
To ensure that there are no undiscovered financial liabilities or debts on the land, it is crucial to do a thorough review of the ownership. Instances include foreclosures or limitations on how the property may be used.
You can look up the ownership in the property registration online, but you should have your broker and an attorney verify the ownership.
Preliminary deposits and final payment
A preliminary deposit is required once you’ve identified a residence you want, looked into the ownership, and reached an agreement on the cost with the seller. The first down payment, often known as “the Introductory payment,” is typically 5% of the total cost. The amount is paid when the Preliminary Contract is submitted.
Lastly, your real estate agent and lawyer will assist you in creating the official sales and purchase contract at this point. Both you and the vendor should read over and sign the contract.
