16/6/2017-34

There must be prudence at home prices

Chen Dongyue Executive Vice President of Hong Kong Professionals Association and Registered Professional Surveyor (Industry Survey)

The US Federal Reserve has just announced a rate hike of 0.25%, also predicted that during the year or will raise interest rates again. Hong Kong residential property market has a new high-priced transactions, casually give some newspaper headlines of the transaction case, Tuen Mun Tai Yin Ting middle 381 square feet two room units to about 4.658 million yuan, about $ 12,226 yuan, A record high. There are also high-priced public housing transactions in Hong Kong, Hong Kong, China, Hong Kong, the central unit of the area, an area of ​​544 square feet, the transaction price of 4.05 million yuan (green table), 7,745 yuan per square foot green roof public housing high. It seems that the market ignores the rate hike, in the current government a number of “spicy tax" measures, the user-led market is still irrational excitement? I call home buyers must be concerned about making a decision carefully.

The United States and then raise interest rates once again

The US Federal Reserve Board of Interests after the decision to raise interest rates 0.25%, while looking forward to this year will raise interest rates again, 16 members of which, eight are expected to raise interest rates again this time, four is expected to raise interest rates twice. In addition, the council also said it is expected to normalize its balance sheet this year. The Bureau believes that the short-term economic risk is roughly balanced, but inflation is expected to remain below the target in the short term 1.6%, and will pay close attention to development.

The Financial Secretary, Mr Chan Man-cheung, reminded members of the public of their earlier activities. Members of the public who are interested in home ownership should be cautious and pay attention to the impact of the rate hike on the market. The US interest rate increase is the interest rate normalization cycle of the fourth rate hike, the market generally believe that the US interest rate direction will continue next year. Chen said that under the linked exchange rate mechanism, Hong Kong will always follow the US rate hike, although the time and magnitude may not be the same.

I also agree with the views of the Secretary, regardless of the next rate hike before the end of the year or even early next year, the Hong Kong bank to raise interest rates and the extent of the time, at all stages of property prices have been at the peak, at this stage for home buyers, The impact of the trend on the affordability of the building itself. Perhaps early self-assumption continued to raise interest rates accumulated to 1% or even 2% of the stress test, if still able to cope with only consider home, they are more at ease.

Prepare spare cash more peace of mind

There are media friends to the author said that the recent large house to put the volume reduction, the market cost of dry up, or there are cases of bank valuation is insufficient, such as prospective buyers cash on hand, the final or the face of the loss. In fact, the professional speculators employed by the banks generally use the market comparison method, refer to the recent case of similar transactions in the same area in the same district, and make the adjustment according to the difference of the factors. At present, some of the housing estates lack a recent transaction, there is a certain difference in the valuation or the transaction price with the buyer. I would like to remind prospective buyers, should be signed before the sale of the contract, in advance with the bank to discuss the issue of the mortgage, the submission of personal financial situation and the contribution of information on the capacity of the bank to mortgage the property to do the valuation, but also for the borrower also Models with stress tests to do the assessment, and then come up with the amount of money to ask the amount of the proposal. This allows prospective buyers to make a more accurate budget, how much cash is enough to pay the maternity and payment stamps, attorneys’ fees and brokerage commissions. May also be compared to more than one or two banks for loans can also be compared, and if you can set aside additional cash, when the transaction price and valuation gap, there may still be sufficient funds to complete the transaction and pay the other costs. ■ The title is intended for the editors. This edition of the article, for the author’s personal opinion, does not represent the newspaper position.