Investment in industrial buildings need to pay attention to the title contract

Benefiting from the industrial and commercial dismantling project, the industrial and commercial market in recent months has a good trading atmosphere. In April, the number of registered industrial buildings reached a high of ten months since July last year, and the registered value reached a record high. In view of the fact that residential properties are limited by a number of “hot tricks”, and some industrial buildings are easy to enter, the return can be as much as four to five cents. Therefore, many people have begun to explore properties such as investment parking spaces and industrial and commercial shops. However, the mortgage terms for industrial and commercial shops and residential properties are slightly different. Investors should be careful about “landmines” to avoid damage.

Bank valuation is relatively conservative

According to the mortgage regulations of the industrial and commercial shops, regardless of the value of the property, if the applicant’s main income comes from Hong Kong, the maximum number of mortgages is 40%, otherwise 30%. If the applicant makes a loan or guarantee for other mortgage properties when applying for a mortgage, the number of mortgages will fall by another 10%. It should be noted that there are fewer restrictions on the purchase of industrial and commercial shops. For example, even if there is an existing property or a foreign buyer, or if the goods are held for less than three years, there is no need to pay additional stamp duty (SSD) and buyer stamp duty (BSD). ), thus attracting many investors into the market, and the stamp duty (AVD) has only one set of standards, but the tax rate is higher than the residential property (AVD second standard tax rate).

In recent years, the Government has restarted the revitalization of industrial buildings, and the trading has also increased a lot. If you are interested in purchasing an industrial building, it is recommended to purchase a newer unit, a retail area, a large number of people and a high renting capacity. The appreciation potential is high. Generally speaking, the industrial and commercial shops can build P according to the plan or H according to the plan, and the repayment period is up to 30 years. However, due to the relatively low circulation rate of the industrial and commercial shops, the quality is quite uneven. Therefore, the bank valuation is relatively conservative and there is no A set of established standards depends mainly on the quality of the property.

In addition, at present, many industrial buildings are being demolished and there is a sell-off. Buyers should first figure out the difference between the independent deed, the sub-deed and the market. First of all, the Independent Deed is a deed of a building unit, that is, there is only one title. This type of mortgage is the simplest; the meaning of the deed is to divide a large unit into small units for sale, and the owners need to go through the law firm. To handle and register with the Land Registry, split a title into several titles. If the formalities are completed, you can buy and sell freely. The mortgage problem is not a big problem. A plate refers to a unit divided into two or more independents. Units, and each unit does not have independent title. In addition, the owners may not apply to the Buildings Department, or they may involve another problem. Therefore, banks generally do not accept mortgages. Therefore, before purchasing an industrial unit, it is best for the buyer to understand the Deed of Mutual Covenant and pay attention to the land use specified in the Deed of Mutual Covenant for residential or commercial purposes. In addition, you should also check the records of the Land Registry to see the status of the title and whether there is a contract. It is also necessary to pay attention to whether the unit meets the requirements of the Buildings Ordinance, such as fire escapes, fire prevention, drainage and ventilation systems. . Finally, remember to buy the unit first to find the bank valuation, so as not to overestimate the budget.