How to Buy a Fixer-Upper in Hong Kong
- 1). Find a reliable agent and tell him exactly what you are looking for, how much you want to spend and what areas you are interested in. Remember, location in Hong Kong is perhaps the most important factor to take into consideration. Decide how much money you have to spend on doing up the property. It can be difficult to find reliable workmen in the city and the good ones can be pricey. The more you can do yourself, the better. Ask friends for reliable contacts and speak to them first. Ideally, get your chosen contractor to come with you when you visit properties, so you can get some idea of the work and costs involved in renovations.
- 2). When you have found the property to want to buy, have your contractor check it out for viability and costs. Agree on an asking price with the seller and then contact your solicitor to ensure all the documentation pertaining to the sale is in order. Your solicitor will check ownership status with the Land Registry Office, and conduct searches, including a title deed search, so you know the paperwork is all in order. Draw up a provisional agreement with the seller via your solicitor. This will include a non-refundable deposit. Have your solicitor draw up a final sale and purchase agreement.
- 3). Visit the property with the seller before you sign the final purchase agreement and make sure all items included in the sale are intact. Agree on a date for final completion with the seller. This is when they will hand over the keys to the property. Make sure your insurance is in place for the final completion date. This is mandatory if you are taking out a mortgage on a property in Hong Kong. Stamp duty must be paid to the government within 30 days of purchasing your property. This is generally between 0.75 percent and 3.75 percent. The Inland Revenue Department will calculate it for you.
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