The new "Budget" proposes legislation to suspend landlords from chasing rents from designated industry operators for at least three months, causing some landlords who are repaying their mortgages to worry.
Financial Secretary Chen Maobo said on a radio program this morning (26th) that he is considering protecting property owners affected by the measures through legislation. The Hundred Guarantee Plan, through the bank to advance the rent to small owners for a period of 3 months, with a ceiling of 100,000 yuan per owner.
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The ban on rent recovery is aimed at real estate developers in order to reduce administration and spread to small owners
Chen Maobo pointed out that the policy goal of suspending rent recovery is big landlords and big real estate developers, not small landlords. He hopes big landlords and big real estate developers will raise their hands, and emphasize that they hope to keep small and medium enterprises and avoid large-scale closings.
Regarding the small property owners affected by the measures or unable to repay their bank loans, Chen Maobo pointed out that he has communicated with major banks through the HKMA, and the other party has responded positively. Suspend homeowners’ contributions, and consider enacting in the law that banks cannot pursue homeowners affected by short-term measures for repayment for a period of 3 months.
He said that the government plans to provide a 100% guarantee to advance rent to small owners through banks, with a ceiling of 100,000 yuan. When applying for the plan, owners must apply to the bank for their assets and income status.
When asked why the measures are not only aimed at big property owners and big real estate developers, Chen Maobo said that under the current circumstances, he hopes to reduce administrative measures and will also meet with major real estate developers to discuss.
Tax deductions for rental expenses are available for those who have bought off-plan properties but have not moved in
The "Budget" proposes tax deduction for rental expenses. Chen Maobo pointed out that if he owns a property and is renting a building, he cannot deduct the tax, but he has purchased an uncompleted property and has not yet moved into it, and he is currently renting a building.
In addition, people whose companies provide rental allowances are not tax deductible.
Russia’s invasion of Ukraine caused turmoil in the global stock market. Chen Maobo said that the Hong Kong government has been closely monitoring the situation. As an open economy, Hong Kong’s market is unavoidable, and the most important thing is to ensure the resilience of the Hong Kong market.
He said that the current bad debt rate in Hong Kong is less than 0.9%, which is a very low level, and the banking system is also very rich, and he is not worried about the stability of Hong Kong's financial system.
Competing for chief executive?
In the current epidemic war, there is no distraction to think about other things
When asked whether he would run for the chief executive, Chen Maobo said that his team had worked hard to prepare the "Budget" earlier, and there was a lot of follow-up work afterwards.
Suspension of Rent Chasing｜Landlords' domino-style impact on the livelihood of the shops Xu Zhengyu rejects the bad debts budget ︱ Banning rent pursuit for half a year can benefit retail shops Chen Maobo urges landlords not to "kill tenants" The budget supports corporate measures｜Exemption from profits tax The upper limit is 10,000, and the budget plan is to prohibit landlords from pursuing rents from designated industries.
