New World’s non-profit housing social enterprise "New World Builds a Good Life" proposes to develop the first non-profit private subsidized housing project in Hong Kong. Only half of the mortgage can be provided during the year, and the remaining mortgage will not be withdrawn until the second ten years and the payment will begin. New World will act as the guarantor.
Buyers should pay attention in the future. Although the initial contribution burden is relatively light, but since the rest of the property price will also be paid later, the overall contribution capacity must be considered. If the supply is cut off due to changes in work or income in the future, New World will take it back The unit is for other qualified persons to apply again.
Some concerned groups said that the New World has not officially announced the site selection so far, worrying that the land may involve sensitive ecological zones.
Buyers need to pass stress test for mortgage
New World proposed the implementation of the "Easy Mortgage on Car" plan and is discussing with banks to solve the problem of young families lacking a large down payment and the difficulty of initial payment for home ownership. Therefore, it is proposed to create a "progressive payment" mortgage.
Owners who are selected to get on the bus need to undertake a mortgage from the bank as a general purchaser, and they must pass a stress test, and the successful one will be granted a full mortgage.
Buyers only need to pay half of the mortgage in the first ten years, and withdraw the remaining half from the second ten years at the latest and start making payments.
New World today proposes to build privately-funded housing. If it is implemented in the future, the first phase will donate a piece of land in the west of the New Territories for a pilot project.
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Start to repay the other half of the mortgage payment
In other words, after purchasing a unit, the buyer has to decide when to pay the mortgage for the remaining half of the property price within 10 years.
In the first 10 years of the mortgage, if the buyer's affordability increases, he can start to repay the other half of the mortgage at any time, but the dead line is the 10th year.
The mortgage has not been drawn, and interest will not be calculated until after it has been drawn.
Based on the flattest unit in this plan, the property price is 2.7 million yuan. Buyers can choose to pay half of the property price in the first few years. The mortgage is calculated based on the 30-year mortgage term and the annual interest rate of 2.5%. The amount is about 5,010 yuan, but the monthly repayment amount will be doubled when the other half of the mortgage is started.
New World will act as a mortgage guarantor to increase the success rate of homeowners' mortgage approval by the bank.
If the owner cuts off the supply due to poor economic conditions, New World will take back the unit and sell it to qualified applicants, such as those with a White House Second Certificate.
If there is a difference between the selling price and the original price, New World has not yet finalized the decision.
The landlord can sell it to eligible persons free of land premium after three years of purchase at the earliest, and the arrangement is similar to the current HOS; New World will make corresponding adjustments depending on whether the Housing Authority changes to five years.
Ten years after the purchase, the landlord can sell it in the free market after paying the land price, just like the HOS flats of the Housing Authority, but they must have begun to provide the full mortgage.
Extended reading: Private Home Ownership | New World Advocacy Subsidized Housing Market Price 50% Off Sale of 2.7 Million, First Phase of 135,000 on Car
Chen Jianqing, a member of the Local Research Institute, hopes that New World will announce the site selection as soon as possible.
(Photo by Yu Junliang)
Concerned about ecologically sensitive and urged public site selection as soon as possible
Chen Jianqing, a member of the Indigenous Research Group, said that the most worried thing is the site selection. Because New World only mentioned "New Territories West" today, but did not disclose the location of the land, it is worried that the land involves sensitive ecological zones, which will affect the ecology.
Chen Jianqing also pointed out that in the past there were also privately-participated HOS projects in Hong Kong, and this proposal proposes to sell them at a market price of about 50% to 40% off. The first-homed board offered by Carrie Lam has even more discounts. There can be a HOS price... to prove that the government's housing policy is not aggressive enough."
According to the data, the first first-home project "Huan Ran Yi Ju" was sold at a 62% off the market price at the end of 2018, while the units in the Anderson Road project in Kwun Tong were sold at a 20% off the market price.
Private Home Ownership｜New World Advocates to build subsidized housing at 50% off the market price to sell 2.7 million, the first phase of 135,000 on the car New World plans to launch privately subsidized housing, the first phase of 135,000 is currently available in this market has a choice of private housing | New World Construction of subsidized housing The price per square foot of the attached appliances is more expensive than that of Kai Cheung Court in Diamond Hill