Yes, now the mortage interest rate is really low.
Remeber 11years ago, I had mortage with the
bank for 6.4M and the rate is more than 11% (P+ 2.75%)
Out of the 64,000 monthly payment, only about few thousands
for the principle and all are interest. Those days are terible.作者: 古惑強 時間: 2009-11-24 15:24
本帖最後由 古惑強 於 2009-11-24 15:25 編輯
Sorry, never quite get around to answer this post.
Assuming your household income is HK$30K, if you select the 90% mortgage arrangement (20% mortgage corp. guarantee + 70% bank financing), and 45% of your income will used for servicing the debt, mortgage rate at 5%, 20 years repayment plan. You can borrow up to HK$3.1MM, base on 90% financing, you can afford real estate up to HK$3.45MM, obviously besides the 10% down payment, you need to factor in the stamp duty (1%), commission (2.25%), decoration (say 3%) etc., you will need to have at least HK$560K as initial investment for such estate.
However, if this is your 1st purchase, I suggest you should consider estate with a price tag below HK$2.0MM to begin with, in that case you would have more disposable income after settling the monthly mortgage payment.
Car is for just for leisure, real estate is ........ well part of life.
