Overseas Property FB Live - UK & MortgageOverseas Property | 13 May 2021
Co-organized by The Standard and Sing Tao The Standard Overseas Property Online, the Overseas Property Facebook Live gathers insights from industry professionals and introduces outstanding property projects from top markets around the world.
In the latest episode of Overseas Property FB live held on May 12, Caren Chiu, Director of DWG Hong Kong, and Samson Lau, Head of Mortgage of FM Investment Hong Kong (FMI), shared their views on Britain’s economic outlook and investment prospects.
Among the major cities in Britain, London has always commanded a premium price tag, as not only is it the capital city, but also a great place to live due to its well developed infrastructure and transportation links.
For investors on a tight budget or in search of greater price appreciation potentials, Chiu recommends properties in the south bank of the River Thames in London. She explained, “As the south bank of the River Thames in London is catching up with its development, investors can look forward to greater room for value appreciation.”
One of the up-and-coming projects in the area is Park & Sayer.
Situated in London’s Zone 1 at Elephant & Castle, Park & Sayer is that rare combination of the best of city living with parkland at your doorstep. Apart from having Elephant Park - the biggest park in past 70 years in London- at its doorstep, it also boasts excellent connectivity. Its collection of homes is situated at a roundabout, which makes it just a 2-4 minute walk to the local train station, while connecting to 28 bus lines.
Developed by an esteemed international developer – LendLease, Park & Sayer features 229 private exquisite and elegant 1 to 2-bedroom apartments, ranging from 570 to 816 sq. ft., which all benefit from balconies or terraces. Many of these homes enjoy astonishing panoramic views across London’s skyline and Elephant Park.
Park & Sayer residents enjoy a comprehensive range of facilities, including gymnasium, skylounge with a private dining room, 24-hour concierge service, work space, and more. Residents can also take a 2-minute stroll to the nearby supermarket, as well as 50 more shops including restaurants, salons and cafes.
Chiu recommends investors to go for 2-bedroom apartments as they are a popular choice for young families or those who prefer to split the rent with roommates. 2-bedroom units also enjoy a higher turnover rate as they are favoured by those who want to upgrade from 1-bedroom units, or downgrade from 3-bedroom units.
With the British government investing a huge amount of money in developing the Elephant Castle area, the properties in the area have enjoyed a 35% price growth over the past five years.
On obtaining mortgage loans, Lau points out that, while application procedures in the UK are similar to Hong Kong, the documentation is more complex. Therefore, he advises investors to first seek an agreement in principle (AIP) which provides an estimate of the mortgage ratio in advance, based on the applicant’s income, asset and debt.
“Banks are more willing to offer mortgage loans for large development projects and projects developed by notable developers such as LendLease,” he notes. “Investors with a ‘buy-to-let’ intent can expect a mortgage ratio of up to 75%.”
Meanwhile, Hongkongers who reside and work in the UK with the BNO visa can enjoy a high mortgage ratio of 90% with a lower interest rate.
FMI partners with an extensive range of local and overseas banks and financial providers to safeguard clients against risk factors and customize favourable mortgage deals best suited to their financial profiles. FMI also collaborates with local and British mortgage houses to offer loans for those who could not obtain them from banks. “However, these mortgage houses would charge a higher interest rate of approximately 5-6%,” he notes.
DWG Hong Kong
FM Investment Hong Kong (FMI)
London Property Exhibition
Date: May 15 - 16 (Sat - Sun)
Venue: 27/F, The Park Lane Hong Kong, a Pullman Hotel
Time: 11 am – 7 pm
Seminar: 12 – 1pm/ 3 – 4 pm