The soaring property prices of Hong Kong have given the city the title of The Most Unaffordable Housing in the World. If you live or are considering living in Hong Kong, you may weigh the options of renting or buying property in Hong Kong. The following will outline the pros and cons of renting an apartment or purchasing property.
Renting apartments in Hong Kong
The renting option has long been regarded as a flexible choice in Hong Kong. Both locals and expats tend to rent rather than buy in the face of high property prices.
Renting provides you higher mobility. For short-term expats, rental is likely the only choice that makes sense. You not only avoid a heavy financial burden, but also don’t need to bear the responsibility to maintain and refurbish the property.
However, many people prefer to customize their living space to their own tastes and preferences. Know that should you do so, the rental property needs to be returned to its original state when the lease ends. Landlords in Hong Kong also tend to increase rents at the end of a lease period, so be prepared to negotiate or terminate the agreement.
Should you have to move house, have no fear, hiring professional movers in Hong Kong is actually quite affordable, and Hong Kong neighborhoods each have a certain character that can be very worthwhile experiencing. Many people, in fact, prefer to move quite frequently because it is so easy and efficient to do so.
Buying property in Hong Kong
Property prices in Hong Kong have historically been quite volatile. Getting a good deal on a property tends to be a matter of timing and is a decision that needs to be carefully considered.
For expats, buying housing or property can be particularly difficult. Aside from investing time and energy into understanding the Hong Kong property market, items like mortgage plans, ideal living locations, the stamp duty system, and legal hoops are all required knowledge for decision-making. Banks are also less likely to grant loans to expats who do not have sufficient financial history in Hong Kong.
Nevertheless, there are advantages to purchasing your own property in Hong Kong. If you intend to stay long-term and want to establish a sense of stability and belonging, then buying a house is a potential way to keep your monthly payments lower. Mortgage payments are likely to be the same or lower than rentals. You also gain control over your own living space and are free to renovate or design as you see fit pending any necessary approvals from the Buildings Department. Purchasing can also be beneficial long-term if you are able to capitalize on any appreciation in the real estate market.