📚 Property Buying Handbook

1.1 Assess Your Financial Situation

Understanding your financial capacity is the most important step before buying:

• Down Payment Savings: Typically 10-30% of property price
• Monthly Payment Capacity: Recommended not to exceed 40% of monthly income
• Other Expense Budget: Stamp duty, legal fees, agent commission, etc.

1.2 Understanding LTV Ratios

According to HKMA guidelines, maximum LTV ratios are:

• Under HK$15 million: Maximum 70% (first-time buyers can reach 90%)
• HK$15-30 million: Maximum 60%
• Over HK$30 million: Maximum 50%

2.1 Define Your Requirements

• Location preference (school district, transportation, amenities)
• Unit size (saleable area vs. gross floor area)
• Building age considerations (new vs. resale)
• Orientation and views

2.2 Viewing Tips

• View at different times (daytime, evening, rainy days)
• Check actual unit condition
• Understand building management and maintenance fund
• Inquire about nearby development plans

3.1 Mortgage Types

• H-rate (HIBOR): Follows interbank rate, lower but more volatile
• P-rate (Prime): Follows best lending rate, more stable
• Fixed-rate: Fixed interest rate, suitable for conservative buyers

3.2 Required Documents

• Identity documents
• Income proof (payslips, tax returns)
• Bank statements
• Preliminary sale and purchase agreement

4.1 Contract Process

• Preliminary Agreement: Pay initial deposit (typically 3-5%)
• Formal Agreement: Sign within 14 days, pay further deposit (typically 10%)
• Completion Date: Pay balance, complete transfer

4.2 Related Costs

• Ad Valorem Stamp Duty (AVD)
• Legal fees
• Agent commission (typically 1%)
• Mortgage insurance premium (if applicable)

5.1 Handover Inspection

• Inspect unit condition
• Check equipment functionality
• Document issues and request repairs

5.2 Move-in Preparation

• Arrange utility transfers (water, electricity, gas)
• Purchase home insurance
• Renovation or furniture purchase