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【THE BASE Height Chiang Mai】| A resort-lifestyle for Families, Digital Nomads and the Thai Locals

Immediate Release

Chiang Mai, Thailand – Top investment Opportunity  for Overseas Property

THE BASE Height-Chiang Mai by Sansiri Thailand’s Top Property Developer

No.1 Lucrative Investment and Vacation Home for Expats

Exclusive Foreign Quota First Pre-Sales Launching in Hong Kong this 11-12March

(Hong Kong – 1st March 2023) As one of the largest economy in South East Asia, Thailand has a strong GDP worth over USD500 billion,  even surpassing Hong Kong. Chiang Mai city is ranked among of world’s top travelling destination  not only the economic and cultural centre of northern Thailand, but also a vibrant city of art, lifestyle, history and culture. As Chiang Mai’s fast-developing economy presents an exuberant and low-cost living that comes with it, countless foreigners and locals are being drawn to the city. In response to the soaring demand for local residences, Thailand’s leading real estate developer Sansiri, Thailand’s most trusted full-service property developer with the highest sales volume among Thai developers in international markets over 10 years, is launching THE BASE Height-Chiang Mai, is the company’s first high-rise freehold condominium in Chiang Mai with nice city vista near the Central Festival Mall in 3 minutes with Ashton Hawks, offering limited exclusive foreign quotas in their pre-sales launching event that will be held on 11th to 12th March at 27/F, Park Lane Hotel, Causeway Bay in Hong Kong, with prices starting from HKD550,000.

 

Popular Choice for a Second Home | A resort-lifestyle for Families, Digital Nomads and the Thai Locals 

With a unique natural scenery combined with the convenience of a cosmopolitan lifestyle, Chiang Mai has become a popular destination for families, couples and digital nomads to migrate to or live in recent years. Earlier, the Thai government implemented a policy which offers a 10-year residency visa to foreigners with assets worth over USD 1 million or an annual income of over USD 80,000 in the past two years along with additional privileges, in order to attract more people to make Chiang Mai their second home. What comes with a low living cost are full-range services, a cool climate, extensive infrastructure and multiple historical and cultural landscapes nearby, including Buddhist temples with various architectural styles. Its safety index is ranked 13th among its hundreds of competitors worldwide, which makes it a desirable destination for both residents and travellers, especially in light of the increasing emphasis of work-life balance nowadays. Chiang Mai’s transport network is also optimizing with the planned bullet trains from Bangkok and LRT (Light Rail Transit System) in Chiang Mai city, which will bring more convenient and efficient transport links to the city.

Chiang Mai appeals to not only foreign visitors and expatriates but also local citizens. Every year, Buddhist believers flock to local temples throughout the city, with over 7 million domestic visitors recorded in 2018. Chiang Mai is easily accessible by inland flights, trains, night buses, etc. It takes as fast as just one hour and 20 minutes to reach Chiang Mai from Bangkok. Temples are seen all over Chiang Mai. To name a few, they have the 1300-year-old Wat Phra That Doi Kham, the locals’ favourite, the Doi Suthep, a symbol of Chiang Mai and the Wat Chedi Luang which is situated inside the old city.

Post-pandemic Tourism Rebound Drives a Full Economic Recovery

As the pandemic eases off, travel restrictions have loosened up in many countries. In 2022, Thailand’s tourist arrivals have already returned to a quarter of their pre-pandemic levels. Tourism is the major contributor to Thailand’s economy, accounting for 25% of the country’s GDP. Before the pandemic, the annual tourist arrivals in Thailand had reached 40 million, of which 1.27 million visited Chiang Mai. It is expected that Thailand’s tourism will recover tremendously in 2023, attracting at least 25 million tourists, hence maintaining its position as the best holiday haven in South East Asia and bringing Thailand’s economy back to its peak.

Emerging Property Market Offers High Return | Paradise for Residents and Investors

Chiang Mai, second largest city of Thailand, is one of the fastest-growing real estate markets in the world and is home to up to 30,000 digital nomads while is ranked one of world’s top travelling destination. ‘There is not much supply of similar properties in Chiang Mai. With an increasing number of digital nomads choosing to reside in the city, the demand for high-quality, fully furnished condominium is rising. THE BASE Height-Chiang Mai will hence bring forward remarkable residence options in the heart of Chiang Mai,’ said Mr. Frederick Ho, Managing Director & Partner of Ashton Hawks.  He further commented, ‘Many Hong Kong investors have since then seized the opportunity to invest in rising stars such as Chiang Mai especially buying from trusted developer with strong proven track record both in Thailand and international market, excellent after sales service like Sansiri Plc., expecting a lower capital threshold and a return that is double that of the local Hong Kong market.’ The gross rental yield of THE BASE Height-Chiang Mai is estimated at 7% p.a.*, outperforming other properties in the city due to its attractive location near Central Festival Mall

Major Infrastructure Completion | Benefitting Chiang Mai’s property market

The Thai government’s plans to expand Chiang Mai Airport, building the Second Chiang Mai International Airport, Chiang Mai Light Rail Transit and the Bangkok-Chiang Mai High-Speed Rail will benefit the property market’s constant development. ‘Multiple major infrastructure projects are due to gradually complete in 2024 and 2028. Chiang Mai is expected to become the fastest growing city in Asia and, with it, the fastest growing real estate market, attracting forward-thinking investors to purchase homes in Chiang Mai early and create more real estate dividends from the infrastructure,’ said Mr. Frederick Ho. 

A Rare and Unique Residential Combining Convenience and Quality of Life

THE BASE Height-Chiang Mai is proudly presented by Sansiri Plc, Thailand’s most trusted full-service property developer with the highest sales volume among Thai developers in international markets over 10 years. The project location is a mere 5-minute walk to the Chiang Mai’s biggest shopping mall, Central Festival Walk. It is also a 5-minute drive to the train station and a 20-minute drive to the Chiang Mai International Airport. For those who enjoy a variety of lifestyle and entertainment, it is a 20-minute drive to the local natural hot springs and a 35-minute drive to the golf resort, offering a combination of lifestyle, entertainment, and historical and cultural attractions. With the gradual completion of major infrastructure projects such as the Chiang Mai Light Rail Transit, the accessibility of the area will be enhanced further. The project offers a total of 630 units, ranging from 29.25 sq.m to 56.5 sq.m, with 1 to 2 bedroom, with an estimated average rental yield of 7% p.a.* Owing to the limited foreign quota, only 80 units are available for the Hong Kong pre-sales launch, and overseas residents are entitled to a freehold condominium with prices starting from HKD550,000.

Ashton Hawks will exclusively pre-sales launch THE BASE Height-Chiang Mai in Hong Kong at 27/F, Park Lane Hotel, Causeway Bay on 11th & 12th March 2023. Interested parties please sign up the RSVP here or contact Customer Service Hotline 5226 1138

About SANSIRI

With over 39 years of experience, Sansiri is Thailand’s most trusted full-service real estate developer. With a workforce of over 4,000 employees, Sansiri has built more than 400 projects with over 5 million sq.m. throughout Thailand. Including a residential building in London, all with a strong emphasis on design and liveability. Sansiri provides comprehensive services covering wide range of segments from affordable premium to luxury that go beyond those of traditional developers: concierge services, property management, sales brokerage, and long-term resort rentals. Sansiri believes in constructing lives, not just buildings. Through its innovative products, after-sales, and concierge services, Sansiri offers its residents more than just a home; it presents them with a “way of life”. Sansiri is widely regarded as Thailand’s leading developer of quality houses, townhomes and condominiums. Constructing meticulously designed, well-made homes, it strives to continuously improve the quality of life of our residents. With its subsidiary companies Plus Property Agency, Quintessentially Concierge and Rental for the Holidays Lettings allow the group to fully attend to the needs of the customers all alongside. www.sansiri.com

About Ashton Hawks

Ashton Hawks was established by a group of renowned investment gurus and private collectors who laid the very foundation of the discerning Ashton Hawks, balancing luxury leisure lifestyle and investment. Our headquarter office is located in Hong Kong, with overseas branches in Bangkok and Vietnam. Ashton Hawks’ real estate portfolio is as diverse in style as it is in mega-estate location across the globe, and caters to luxury lifestyles of all kinds. Ashton Hawks takes pride in being a boutique yet original real estate consultant in the luxury market segment for the ultra-affluent.

www.ashtonhawks.com

 

For media enquiries, please contact:

Ashton Hawks Marketing Department

Tel: (852) 2155 4421/5226 1138

marketing@ashtonhawks.com

RSVP 

 Thai VISA and Property Investment Seminar 

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    2023 VIP Event: Thailand Property Investment Outlook




    Sustained strong growth and a rapidly modernizing economy have turned Thailand into an upper middle-income country with a strong urban center. Yesterday our Managing Director and Partner Fred Ho delivered an overview of the Thailand economy and 𝐭𝐡𝐞 𝟐𝟎𝟐𝟑 𝐟𝐥𝐚𝐠𝐬𝐡𝐢𝐩 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐂𝐮𝐥𝐭𝐮𝐫𝐞 𝐂𝐡𝐮𝐥𝐚, 𝐨𝐧𝐥𝐲 𝟑-𝐦𝐢𝐧 𝐰𝐚𝐥𝐤𝐢𝐧𝐠 𝐝𝐢𝐬𝐭𝐚𝐧𝐜𝐞 𝐭𝐨 𝐁𝐓𝐒 𝐚𝐧𝐝 𝐌𝐑𝐓 𝐢𝐧 𝐒𝐚𝐥𝐚 𝐃𝐚𝐞𝐧𝐠.
    If you are interested in the property and want to know more about LTR VISA, please come to our exclusive events this weekend. 𝑹𝑺𝑽𝑷 ☎️5226 1138 | WhatsApp https://wa.link/sxpqig
     
    𝐁𝐚𝐧𝐠𝐤𝐨𝐤 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐒𝐞𝐦𝐢𝐧𝐚𝐫
    25 -26 FEB 2023 (Sat & Sun) |12noon- 7pm
    📍27/F, The Park Lane Hong Kong, Causeway Bay

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      Kick Start of the Year

      Kung Hei Fat Choy! Chinese New Year is important in Asian culture. Here is our tradition of celebrating the start of the Rabbit year! The rituals always tie to good fortune ahead and blessings to all of us. Ashton Hawks is ready to welcome the Year of Rabbit, which symbolizes longevity, peace, and prosperity. We wish you and your family as prosperous as a rabbit.  More happenings will be announced! Stay tuned! 

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        Vietnam Real Estate Market Expected to Rocket

        After the epidemic, Vietnam’s economy has recovered strongly, and property prices are expected to rise even more sharply than in 2022.

         

        Vietnam’s gross domestic product (GDP) growth in 2022 can reach up to 8%, surpassing the target of 6.5%, according to Director General of the General Statistics Office (GSO) Nguyen Thi Huong.

        Housing prices in Vietnam continued to rise in 2022 as low mortgage rates are one of the factors that boost housing demand. People typically look to buy a house for living or as an investment.

        Assessing the real estate market in 2022, the director of a real estate business in Ho Chi Minh City, who declined to be named, said it became warmer in November and December after the government stabilized the macroeconomic situation. Particularly in the last month of the year, with the State Bank’s decision to raise the credit growth cap for banks by 1.5-2 percentage points, customers began to pay attention to real estate again.

        “With the current lending interest rates of 11-12%, real estate or other investment channels will turn out bigger profit than bank deposits,” he said, noting that as property contributes greatly to the country’s GDP, if the market becomes frozen, it will certainly affect hundreds of other industries and the economy as a whole.

        Becoming one of Apple’s main manufacturing hubs

        Regarding market opportunities next year, he predicted that if the credit situation is positive, the segments of land plots worth below VND1.5 billion ($63,600) and apartments from VND2 billion ($84,800) will thrive. In particular, 2023 will be the year of segments that meet real demand.

        Apple will begin producing some of its MacBook computers in Vietnam in 2023, according to a Nikkei Asia report Tuesday. The move reflects the tech giant’s push to expand its manufacturing beyond China, as it grapples with increased U.S.-China trade tensions and supply chain disruptions related to Covid lockdowns.

        Besides, Nike, Adidas, Foxconn, Intel, Samsung, etc, have been expanding their presence in Vietnam, showing that the business and investment environment is still stable and has good growth potential.

        51% of Nike Shoes are “Made in Vietnam”

        Previously, CNBC quoted the financial report of Nike, a corporation specializing in sports products, saying that Vietnam’s shoe production for Nike will account for 51% of its global output, while this proportion is in China. dropped to 21%. In 2006, China made Nike shoes for 35% of its global production. Thus, Vietnam has officially surpassed China, becoming the main production base for this brand. Notably, even Indonesia has overtaken China as the market share of Nike shoe production in the country increased from 21% to 26% in the past 15 years.

         To know more about oversea properties, please WhatsApp us wa.link/18dlwo



        Group Annual Dinner and Awards Ceremony

        Company Annual Dinner🍾🎉
        Thanks for being part of us. We nailed it in 2022. If last year was a gold, 2023 is definitely a diamond to us. Wish you all having a healthy, happy and properous year!
         

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          Thailand ranked Asia’s best place to retire. Housing ahead France and Ireland

          According to the specialist overseas retirement magazine International Living, Thailand is Number 1 in Asia and 11th of all international destinations in the Annual Global Retirement Index (2022).

          The Index is recognized as a comprehensive and in-depth survey of the best retirement destinations around the globe, It ranks countries according to the 10 categories of Housing, Benefits and Discounts, Visas and Residence, Fitting In/Entertain, Development, Climate, Healthcare, Governance, Opportunity, and Cost of Living. Topping the list is Panama, for its low cost of living and easy travel within the city. And Thailand scored an impressive average of 72.9, securing its position at number 1 among Asian while its score on Housing is even ahead of many western countries like France and Ireland. Unsurprisingly, many expats see it as their “second hometown”. And foreigners can buy property in Thailand too.

          BangKok the most welcomed 

          Apart from the impressive score on Housing, Thailand also wins a particularly high scores in the Visas and Residence (82), Fitting In/Entertain (81), Development (81), Healthcare (80), and Cost of Living (90) categories. The index also indicates BangKok, Chiang Mai and Hua Hin are the most welcomed retiring cities in Thailand.  

          There are tremendous reasons for people calling it the dreamy second hometown. An estimated 70,000 retirees call Thailand home for its easy-going lifestyle and lower cost of living. People are attracted by the country’s diversity, from lush green mountains to sunny seaside locations, warm tropical climate, a renewable 12 months visa, good infrastructure and healthcare, and friendly locals. The rest of the listed Southeast Asian countries included  (in order) Cambodia, Malaysia, Bali, Sri Lanka and Vietnam. Other countries among the top list are Costa Rica, Mexico, Portugal, Ecuador, Colombia, France, etc.

           To know more about oversea properties, please WhatsApp us wa.link/18dlwo


          Appreciation Dinner 2022

          Thanks everyone for coming to our appreciation dinner. This year we had specially selected Thai cuisine as the closure of 2022. Not only to create a relaxing holiday vibe for our VIPs, but also to touch on our latest sales FLO by Sansiri in BangkokHope you all enjoyed the night. AH looking forward to serving you the coming year with an array of globally well-selected properties. 

           To know more about the property, please don’t hesitate to WhatsApp us👇🏻

          WhatsApp: 5226 1138 wa.link/18dlwo

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            Spend ‘TIME’ to enjoy life

            【Hublot & Ashton Hawks】Ashton Hawks co-hosted an event with Hublot, inviting our VIPs to have a private viewing of the latest collection. Thank you Hublot and our VIPs for sharing an evening with the collection and presentation of the perfectly fit outlook. The event was a big success while our members enjoyed a relaxing and fashion-conscious Thursday evening. And don’t miss out on our brilliant events and opportunities in the future!





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              Real Estate v.s. Stocks – Which has better returns?

              property investment



              property investment

              Pandemic has destroyed the global economic environment for over three years. With the continuous rise in the number of people vaccinated globally, the economic environment is expected to recover very soon. This is a good opportunity for investors to evaluate their portfolios. Real Estate and Stocks both are mainstream investment tools for investors. But there are some investors who are bearish on the property market, saying that it is not a good time to invest in properties while some even think that buying stocks is better. Is it really better to invest in real estate than in stocks? Without further ado, let me explain it to you!

              There are some Hong Kong investors who never invest in local properties because the returns of investment are not attractive for them. Most buyers may apply for a mortgage to invest in property, the annual rental yield is calculated based on the full-paid property. Which means the return is probably higher than they predicted. Obviously, some investors ignore the appreciation return.

              Is it better to invest in real estate than in stocks?

              It cannot be denied that the threshold for buying stocks is relatively low and investors can enter the market with only a few thousand dollars. However, the stock market is easily affected by external factors, such as company prospects, market trends, industry prospects. Besides, the stock market is fluctuating. However, there are stock enthusiasts who say that if you buy a rising stock, the capital will be doubled. Even so, investors need to spend a lot of time and scheming which is not easy to buy stocks to get rich.

              Investing in property is relatively stable

              Although investing in real estate is not a 100% profitable deal, it still has a lower risk than buying leveraged stocks. Briefly, the real estate market is relatively stable even in the bear market. The overall decline in property prices will only fall by 10% to 30% which is not as leveraged as stocks. The investors will not lose everything. In addition, the property is a real asset and is less affected by inflation. It is not as easy to manipulate the property market as it is in the stock market.

              Some people think that buying the property with leverage is a risky move. However, the risk of investing in a property is limited in reality. As long as investors can still pay the loan on time when property prices fall, banks will not liquidate their positions.

              Risk of stock market leverage is much higher

              Investors with low capital may borrow money to buy stocks in an effort to create more wealth, while borrowing money to buy stocks is called “financing.” Once the stock price plummeted, the investor could not bear it. When the stock falls to a certain level, the brokerage will require investors to re-deposit money, which is called “maintenance margin”. If investors fail to deposit money in time, the stocks they originally held will be forced to sell.

              Perhaps you still insist that stock market leverage is more profitable, but stocks generally have only two or three times leverage. Securities banks may provide a higher leverage, around five to six times, but at the same time with high interest. Investing in a property is completely different. Investors can choose to undertake a 90% mortgage and leverage 10 times. Also, investors can pay $200,000 down payment to invest in a property which is valued at $2 million

              Comparison of investing in real estate and buying stocks

               

              Property investment 

              Buying Stocks

              Capital

              More

              Less

              Risk 

              Lower and property will not be liquidated.

              Higher and stock will be liquidated.

              Nature

              Stable

              Fluctuated

              Profit

              Increased in small proportion

              Increased in larger proportion

              External factors

              Less susceptible

              Susceptible

              Property prices in Hong Kong are the most expensive in the world. It is not easy to invest property in Hong Kong. However, investing in the stock market is too volatile and time-consuming. What if you still want to invest in property? Investors may turn their attention to overseas areas. The property prices in some areas are not as high as imagined. For example, in Southeast Asia such as Vietnam, Cambodia, Thailand and Malaysia. Their local property prices are about HK$2,000,000 or below, which is much cheaper than Hong Kong property. Since Southeast Asia is mostly a developing country, the appreciation potential of buildings is higher than that of Hong Kong.

              Learn more: Overseas Property Projects

              What is “Property Leverage”?

              Most people apply for a mortgage when they invest in a property. Some people have a bad feeling simply looking at the word “Loan”, that associated with “Debt” immediately. There are actually two different kinds of “Debt”, good and bad. If you just borrow money from the bank to buy items with no appreciation potential, it is called “Bad Debt”. If you are buying items that have the potential for appreciation and can create wealth for you, it is called “Good Debt”. In addition to the rental return yield, investing in property also has an appreciation return. Therefore, borrowing from the bank to invest in property belongs to Good Debt as it can create wealth.

              Speaking of Property Leverage, let’s take a property valued at HKD 2 million as an example. The investor will pay 40% of the down payment which cost $800,000. The rental income can be set off against bank contributions, and after three years the property is valued at $2.5 million and the property has appreciated by 25%. If the investor resells the property, based on the original principal of $800,000, the profit is over 62% and the return is quite high.

              What if only rental returns were considered? Again, taking a property of HKD 2 million as an example. The owner borrowed 60% of the down payment which cost $1.2 million. Assuming the interest rate is 4%, the payment term is calculated as 20 years and the monthly payment is about $8,700. If the rental income is more than $8,600, excluding miscellaneous expenses, the owner will spend an extra $100 per month. Looking at the cash flow calculation alone, there is no return at all.

              That’s why investors are willing to apply property leverage! At the same time, it is explained that investing in property does not only look at the rental return while the appreciation return is also the income of the investor. If investors intend to buy overseas properties, they should invest in areas with high potential for appreciation. If you are not familiar with the overseas property market, you are welcome to contact overseas property agents. They are more closely aligned with local realities and can carefully analyze the return on investment and property appreciation for you.

              Taboos for Property Investment

              Real estate generally has a good return on investment , as it can generate ongoing passive income, however, you may need to bear the risk too. While pursuing higher returns, investors should make decisions carefully. They have to consider various factors and plan for the worst. Some may invest wrong in properties because they committed the following taboos.

              Taboo 1: Lack of research

              The Asia Financial Crisis in 1997 caused many investors to lose a huge amount of money in property investment. They are still unconfident in the property market and are worried about repeating the same mistakes. The investment mentality is very important, just like the investors who have lost terribly recently are all chasing the market in 2018. It is utmost important to observe the market reaction, especially when investing in property. You have to get extra attention when everyone foresees a good property market, while when the market atmosphere is calm, it may be a perfect time to enter the market when no one dares to invest in the property.

              Taboo 2: Excessive leverage

              The most feared thing for property leverage is overestimation on their loan capacity. The worst case is you cannot even pass the stress test after applying for a mortgage, you are then forced to forfeit the down payment given. Never underestimate the stress test, as it is not a must for everyone to apply successfully for a mortgage!

              Taboo 3: Without making any comparison 

              In recent years, it is often said that properties in Hong Kong Island, near the subway or with invincible seaview have higher return on investment. However, developers may have over gauged the future property value to make it more appealing, indeed, when investing in a property, you are suggested to make more comparisons and evaluation on your own.

              It is true that investing in property has a relatively stable return. Although the entry fee is higher, the return earned is often higher than expected. Investing in real estate is different from buying stocks. Nonetheless, they can also be leveraged for investment, but it can make investors lose their money in minutes. And even if property prices fall, as long as investors can continue to make contributions, banks will not liquidate their positions. If you plan to invest in a property, don’t just follow the market trend. Generally, not everyone can make a profit in property investment. Whether to invest in properties or buy stocks, there is no 100% guaranteed yield in investment, so investors must do good in risk management.

              If you have plans to invest in overseas properties, but you are not familiar with the overseas property market. Ashton Hawks is founded by a group of senior property investment experts which provides professional real estate consulting services to investors who intend to invest in overseas properties. At the same time, Ashton Hawks will formulate a diversified real estate investment portfolio for reference in order to provide customers with the latest property information to help customers seize every opportunity.

              Ashton Hawks also conducts regular property investment seminars which allow clients to keep abreast of market overview, real estate trends and legislative changes. Looking for professional investment property advice? Welcome to leave your contact information and let Ashton Hawks answer your questions!



              Disclaimer:The information, text, photos contained herein are provided solely for the convenience of interested parties and no warranty or representation as to their accuracy, correctness or completeness is made by Ashton Hawks or the sellers, none of whom shall have any liability or obligation with respect thereto. These offerings are made subject to contract, correction of errors, omissions, prior sales, change of price or terms or withdrawal from the market without notice. Information provided is for reference only and does not constitute all or any part of a contract. Ashton Hawks and its representatives work exclusively in relation to properties outside Hong Kong and are not required to be nor are licensed under the Estate Agents Ordinance (Cap. 511 of the Laws of Hong Kong) to deal with properties situated in Hong Kong. Digital illustrations are indicative only. *Rental yield is projected by the agency and not guaranteed by the developer.







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                【UK Property Mortgage 2023】Process, Costs, and Precautions for Buying Property in the UK

                英國物業按揭

                英國物業按揭

                【UK Property Mortgage 2023】The UK, Canada, and Australia are favorite destinations for immigrants from Hong Kong. Since the UK government’s announcement of the “BNO 5+1” visa policy, the number of immigrants to the UK has been steadily increasing. In June 2023, the UK indicated its intent to tighten immigration policies, and the impact on Hong Kong BNO holders remains uncertain. However, for those aiming for long-term residence in the UK, having a home becomes crucial. As a result, many are exploring the option of buying property in the UK or planning for a UK property mortgage. This article will guide you through the process of buying and selling properties in the UK, how to apply for a UK property mortgage, associated costs, and essential precautions.

                UK Property Mortgage Application Process

                Buying property in the UK has similarities to purchasing property in Hong Kong, but the procedures and regulations differ. Hence, many from Hong Kong hire agents to help with the UK property mortgage application. Yet, some handle everything on their own to save money. Regardless of the type of buyer you are, understanding the UK property mortgage process is essential to avoid unnecessary losses. Generally, UK property mortgages are categorized into first-hand and second-hand, each with distinct processes and timelines.

                First-hand UK Property Mortgage

                In Hong Kong, whether you’re buying a first-hand or second-hand property, transactions can take place at property agencies. However, in the UK, the first-hand property buying process differs slightly. Buyers usually select their preferred property in a sales gallery and pay an earnest money (not a deposit!) to reserve it. Once the earnest money is paid, the agent issues a Reservation form to the buyer. This form can then be presented to a bank for a UK property mortgage application. Buyers of properties under construction should begin the mortgage application roughly six months before the anticipated move-in date.

                Second-hand UK Property Mortgage

                The procedure for acquiring second-hand properties is different from that of first-hand ones. Buyers must first obtain a UK property mortgage approval from a bank before officially placing a deposit and signing contracts with the seller. After successful price negotiations, both parties sign a memorandum of sales. Holding this document, the buyer can then formally start the UK property mortgage application. Typically, the entire process, from application to completion, takes about four months. Therefore, ample preparation and planning time is essential to ensure a smooth purchase process.

                Regardless of whether one is buying first-hand or second-hand properties in the UK, it’s crucial for buyers to thoroughly understand the UK property mortgage application process and prepare all necessary documents promptly. Moreover, choosing an experienced and reliable mortgage consultant or agent is vital, as they can offer expert advice and help streamline the UK property mortgage application and purchasing procedure.

                Where to Obtain a UK Property Mortgage?

                To obtain a UK property mortgage, you don’t necessarily need to be in the UK. Local banks like HSBC, Bank of China (as of September 2023, this bank has suspended fixed-rate mortgages), and BEA (Bank of East Asia) all offer UK property mortgages, or can refer you to their UK branches. However, these three banks only provide mortgages for certain UK cities, with a maximum mortgage ratio of 70-80% and a maximum lending period of 30 years. The mortgage terms differ among these banks, so buyers need to compare carefully and choose the UK property mortgage plan that best suits them. Compared to UK banks, applying for a UK property mortgage through local banks might have higher requirements.

                Are There Differences in Mortgages for Personal Use and Rental UK Properties?

                For properties in the UK meant for personal use versus those for rental, banks may have different mortgage terms and requirements. Generally, the mortgage ratio for rental properties might be lower, and the interest rate may be higher. In Hong Kong, the three major banks have different criteria for the types of properties they provide mortgages for. BEA only accepts “Buy to Let mortgage” (BTL) applications for rental properties in the UK. So, if a buyer intends to use the property for personal residence, they won’t get mortgage approval. In contrast, Bank of China and HSBC offer mortgage applications for both personal residence “Residential mortgage” and rental properties “Buy to Let mortgage”. Hence, before applying for a mortgage, buyers should clarify their needs, whether purchasing for personal residence or rental, and carefully compare the mortgage terms and requirements of different banks.

                Overview of UK Property Mortgage Ratio & Duration

                The mortgage ratio for UK property applications is slightly higher than in Hong Kong. This is because the HKMA (Hong Kong Monetary Authority) regulations limit local banks to a maximum mortgage ratio of 50-60%, while branches of banks in the UK are more lenient, with most offering up to a 75% mortgage. If you’re considering buying a property in the UK for personal use, you might want to approach the Bank of China for a UK property mortgage, as it offers up to 80%, the highest among the three banks, with a term of up to 30 years.

                While the term is stated as 30 years, many UK banks have a mortgage term formula based on the difference between the retirement age and the age of the applicant at the time of the mortgage application. For instance, if the buyer applies for a mortgage at the age of 30 and retires at 60, the maximum mortgage term is 30 years. However, past data indicates that most mortgage applicants opt for a term between 20 to 25 years.

                Bank Maximum UK Mortgage Ratio Longest UK Mortgage Term
                HSBC 75% 25 years*
                Bank of China Personal: 80%, Rental: 75% 30 years
                BEA# 70% 25 years^

                *Whichever is shorter between 30 years and the difference between retirement age and applicant’s age.

                ^Whichever is shorter between 65 years and the difference between retirement age and applicant’s age.

                #Only offers mortgages for rental properties

                However, as for which bank is more suitable for your UK property mortgage, it also depends on whether the bank supports local property mortgages. Considering branches, HSBC has the most branches in the UK, while the Bank of China and BEA have fewer branches in the UK.Bank of China UK Branches:

                • London
                • Birmingham
                • Manchester
                • Glasgow

                BEA UK Branches:

                • London
                • Birmingham
                • Manchester

                If you are interested in purchasing a property located outside of these cities, you might need to inquire with your bank before purchasing to see if they offer mortgages for properties in that area.

                UK Property Mortgage Application Fees (Updated September 2023)

                HSBC Bank

                HSBC Bank does not charge any processing or valuation fees. However, they do have varying booking fees depending on the type of mortgage and the initial interest rate. For instance, a 2-year mortgage at a fixed interest rate of 6.74% has no booking fee, while a 2-year mortgage at a fixed interest rate of 6.04% has a booking fee of £1999.

                Residential UK Property Mortgage Fees

                Term/Type of UK Mortgage Fixed Rate Mortgage Variable Rate Mortgage
                Fixed Fee Saver Plan £0 Not Listed/Not Applicable
                Standard Plan £999 £999
                5-Year Premier Standard Plan £1499 Not Listed/Not Applicable

                *Applicable to 2 / 3 / 5 / 10 year payments

                Rental UK Property Mortgage Fees

                Term/Type of UK Mortgage Fixed Rate Mortgage Variable Rate Mortgage
                Fixed Fee Saver Buy To Let Plan £0 £0
                5-Year Premier Standard Plan £1999 £1999

                *Applicable to 2 / 5 year payments

                Source:HSBC Bank (UK) Mortgage Fee Schedule

                Bank of China (As of September 2023, this bank has suspended fixed-rate mortgages)

                The Bank of China charges a telegraphic transfer fee, arrangement fee, booking fee, valuation fee, and deed discharge fee for each UK property mortgage. Furthermore, if early repayment is required, there might be an early repayment charge (ERC). All fees are non-refundable, regardless of whether the mortgage is completed or not.

                BEA (Bank of East Asia) UK Property Mortgage Application Fees

                Telegraphic Transfer Fee £35
                Arrangement Fee £1295 / £2495 / 0.5% of loan amount
                Valuation Fee Depends on property value
                Booking Fee £299
                Deed Discharge Fee £95 (payable upon completion)
                Early Repayment Charge (ERC) Applicable only if the full amount is repaid in the first year, 1% of the loan amount

                Source:Bank of China (UK) Mortgage Fee Schedule

                Bank of East Asia

                Bank of East Asia charges an application fee, arrangement fee, and valuation fee for each UK property mortgage. The application fee is £300, which is the highest among the three banks, but the arrangement fee starts as low as £600, making it cheaper than the Bank of China. Additionally, an early repayment charge (ERC) may apply if you decide to repay the mortgage earlier. All fees are non-refundable, whether the mortgage is completed or not.

                Bank of East Asia UK Property Mortgage Application Fees

                Application Fee £300
                Arrangement Fee 0.5% of loan amount / Minimum £600
                Valuation Fee 0.1-0.15% of property value

                UK Property Mortgage Application Criteria and Stress Test

                What are the criteria for applying for a UK property mortgage? Generally, for Hongkongers applying for a UK property mortgage, up to 70% of the property’s value can be mortgaged, with most mortgage terms being 20 years. Most banks only accept payments in GBP for their UK mortgage plans, which indirectly exposes Hong Kong property owners to exchange rate risks. At the same time, UK banks will conduct a stress test on the buyer at an increased interest rate of 2%, ensuring that monthly payments do not exceed 50% of their income. Different banks have the following annual income requirements for applicants (only basic salary is considered, without accounting for bonuses and double pay):

                Bank City Annual Income Requirement Type
                HSBC UK and Scotland Individual: £50,000 Company: £75,000 Residential/Rental
                Bank of China London, Birmingham, Manchester N/A Residential/Rental
                Bank of East Asia London, Birmingham, Manchester £72,000 Rental

                UK Mortgage Threshold: How is the Stress Test Calculated?

                Buyers applying for a UK property mortgage through a local bank must pass a stress test. With the GBP exchange rate considered by the Hong Kong Monetary Authority as a risk for overseas property investment, it becomes harder for buyers applying through local banks to pass this test. As a result, some buyers opt for mortgages from UK local banks, where the purchasing conditions are more lenient than in Hong Kong.

                However, UK banks have stricter income requirements for applicants than Hong Kong, as they only consider net income, excluding all bonuses, double pay, and other incomes. Mortgage applications through UK banks mainly depend on the payment-to-income ratio. UK banks may increase mortgage interest rates to offset risks for higher payment-to-income ratios, with the upper limit being around 60-70%. However, surpassing a 60% ratio is challenging. Additionally, during the approval process, UK banks will also consider the applicant’s expenses and debt situation. Buyers can review their spending situation when applying for a mortgage. UK banks, however, will not review credit databases, commonly referred to as TU.

                Types of UK Property Mortgages and Major Bank Comparison

                UK property mortgages, like in Hong Kong, come in two types: fixed-rate and tracker mortgages. Repayment plans offer interest-only or interest and principal repayments. According to market statistics, one-third of UK property owners opt for interest-only payments to complete their mortgage repayments.

                Fixed Rate Mortgage

                With a fixed-rate mortgage, buyers can ensure their payments won’t fluctuate with the Bank of England’s interest rate for a certain period, typically two to five years. Banks initially charge an “arrangement fee” and a “booking fee”. At the end of each fixed-rate period, these fees must be paid again. After three years of a fixed-rate mortgage, buyers can choose a new fixed-rate mortgage plan or opt for a tracker mortgage, redefining their future payment mode.

                Tracker Mortgage

                The interest rate for a tracker mortgage is determined by a reference rate plus the Bank of England’s base rate. When the Bank of England raises interest rates, the base rate will adjust, and the mortgage interest rate will increase accordingly. So, with a tracker mortgage, the interest rate can either increase or decrease based on economic conditions, leading to variable payments.

                Interest-only Repayment

                Regardless of choosing a fixed-rate or tracker mortgage, buyers can also opt for “interest-only” repayment. This option targets rental properties with an investment component, and the mortgage ratio must be tightened by 5% compared to the original stipulation. Buyers only need to repay the monthly interest, and some owners choose “interest-only” to maintain sufficient cash flow.

                Comparison of Major Banks’ UK Property Mortgages: Which One is Right for You?

                If you are considering a fixed-rate mortgage, your only option is HSBC, as it is currently the only major bank in Hong Kong offering a “fixed-rate mortgage” option (as of September 2023, Bank of China has suspended this service). HSBC’s fixed-rate mortgage terms are two, five, and ten years, with varying loan-to-value ratios. Choosing different “initial fixed-rate terms” and “fixed interest rates” will impact the “booking fee”. In simple terms, if the “initial fixed rate” is lower, the “booking fee” will be higher and vice versa. The fixed interest rate for residential properties ranges between 5.54% and 6.63%, while for rental properties, it’s between 5.74% and 6.79%.

                Regarding the penalty period for fixed-rate mortgages, if there is a partial repayment or redemption during the fixed-rate period, there will be penalties. HSBC allows buyers to repay up to 10% of the remaining loan amount annually without penalties during the fixed-rate period. If this 10% threshold is exceeded, a penalty of 1-5% will be charged. Additionally, an administrative fee will be charged by the bank during redemption. The Bank of China stipulates that a penalty of 1% of the loan amount must be paid for early repayment within the first three years.

                As for tracker mortgages, only HSBC among the three banks does not offer a full-term tracker mortgage. The interest rate for the first two years will vary based on the loan-to-value ratio and the booking fee. Though it appears fixed at first glance, these rates will fluctuate according to the Bank of England’s base rate. After two years, the interest rate for residential UK property mortgages is 6.99%, while for rental UK property mortgages, it’s 7.6%. These UK property mortgage rates will also vary with the Bank of England’s base rate.

                Moreover, both the Bank of East Asia and the Bank of China offer full-term tracker mortgages. Their rates will adjust based on the loan amount and the loan-to-value ratio. For instance, the Bank of China’s maximum loan amount is £5,000,000, with its residential property’s full-term rate ranging between 3.39% + the Bank of England’s base rate and 3.99% + the Bank of England’s base rate.

                Concerning the penalty period for tracker mortgages, the Bank of China mandates that a penalty of 1% of the loan amount must be paid for early repayments within the first three years. HSBC doesn’t offer any advantages for early repayment; any early repayment or redemption will incur a penalty of 1-5%. The Bank of East Asia charges £150 for partial repayments or early redemption, with an additional £100 administrative fee for full early redemptions.

                If you are inclined to choose an interest-only plan without repaying the principal, only the Bank of China offers this option. However, note that this plan is only applicable for rental properties intended for investment purposes, and the loan-to-value ratio will be 5% lower than regular plans.

                Table comparing the UK property mortgage plans of the three banks:

                Item / Bank HSBC Bank of China Bank of East Asia
                Offers fixed-rate mortgage ✔️ (Two-year, three-year, five-year, ten-year terms) ❌ (Suspended in 2023)
                Booking fee for fixed-rate mortgage Varying based on “initial fixed-rate term” and fixed interest rate
                Range of fixed-rate mortgage interest rates Residential: 5.54%-6.63%; Rental: 5.74%-6.79%
                Penalty for early repayment of fixed-rate mortgage Can repay up to 10% of the remaining loan amount annually without penalty; a 1-5% penalty is charged for exceeding this limit 1% penalty for repayment within the first three years
                Offers variable rate mortgages for the entire term ❌ (Variable rate for the first two years only) ✔️ ✔️
                Variable rate mortgage interest range Primary Residence: 5.84%-5.94%; Rental: 6.19%-6.39% Primary Residence: 3.39%+base to 3.99%+base; Rental: 4.09%+base to 4.69%+base Depends on the loan amount
                Penalty for early repayment of variable rate mortgage 1-5% penalty for early repayment 1% penalty for repayment within the first three years Early redemption or partial repayment: £150; Full early redemption: £100 administration fee
                Offers interest-only repayment plan ✔️ (Only applicable to investment rental properties)

                UK Property Purchase Process

                Step One in UK Property Purchase: Property Search

                Similar to Hong Kong, the UK also has off-plan property sales. However, in the UK, there are no specific key dates, only estimated completion dates based on the season. Overseas or UK real estate agents often hold exhibitions in Hong Kong to promote UK properties. Some of these properties are off-plan, while others are existing properties. Existing properties are more popular in the market because they are immediately available for occupancy after purchase, thus, they tend to have higher prices.

                Due to pandemic restrictions, it might not be possible for Hong Kong residents to visit the UK in person. However, interested investors need not worry. Exhibitions often provide sample units or models for reference. If one is considering purchasing a second-hand UK property, buyers can browse UK property websites to view photos or take virtual reality (VR) tours of the property. Of course, if needed, you can also request agents to conduct real-time virtual property tours to view the actual condition of the property.

                Step Two in UK Property Purchase: Sign the “Preliminary Sales Agreement” and Pay a Deposit

                If a buyer has chosen their desired UK property, they need to sign a “Preliminary Sales Agreement” with the owner or developer and pay a deposit, typically ranging from £1,000 to £5,000. If purchasing a second-hand UK property, buyers can try to negotiate the price with the seller. Once both parties agree on the price, they can sign a “Sales Memorandum”. Subsequently, the buyer can appoint a solicitor or agent to proceed with the sales formalities. Of course, those planning to purchase a second-hand UK property can also hire a property surveyor to produce a detailed structural and architectural report.

                UK Property Purchase Process Step Three: Apply for a UK Property Mortgage

                After successfully signing the “Preliminary Sales Agreement” and paying the deposit, you can immediately apply for a UK property mortgage. Depending on the type of property, such as primary residence/rental/new property/second-hand property, the mortgage procedures and costs may differ. For details, refer to the earlier sections of this article.

                UK Property Purchase Process Step Four: Sign the Official Sales Contract and Pay the Down Payment/Deposit

                Once the buyer has successfully obtained approval for the UK property mortgage, they can make the down payment to the developer. Simultaneously, if it’s a second-hand UK property, the buyer can pay the deposit. The down payment for new UK properties typically ranges between 10% to 30% of the property price, and some buyers may be required to pay before applying for the mortgage. For second-hand UK properties, the deposit is usually around 10% of the property price, payable to the owner upon contract signing. If the buyer defaults, the deposit is non-refundable.

                UK Property Purchase Process Step Five: Property Handover

                Developers may request owners who have purchased off-plan properties to pay a portion of the property price 6 months after signing the contract. Therefore, buyers should pay attention to the payment schedule specified in the sales contract. Once the project is completed, the solicitor will notify the buyer to inspect the property and inform them of the exact handover date. On the day of the handover, the bank will transfer all mortgage loans to the developer, completing the entire UK property purchase process.

                Additional Information: What are the ongoing expenses after purchasing a UK property?

                The table below lists the regular expenses for UK property owners. Prices may vary due to local policies. For the latest information, please contact UK property agents!

                Council Tax Annual council tax payments are typically between £1,500 to £2,000 for a general property. If the property is rented out, the council tax is paid by the tenant.
                Ground Rent Property buyers in the UK are required to pay an annual ground rent to the landlord, typically around £400.
                Income Tax If the UK property is purchased for rental purposes, the buyer must pay income tax based on the rental income. Non-UK citizens pay income tax at rates ranging from 20% to 45% of their annual income, while UK citizens have a tax-free allowance below £12,500.
                Property Management Fee If the UK property is purchased for rental purposes, a management fee is payable to the property management company, typically about 10% of the monthly rental income.
                Building Insurance Buyers of new UK properties receive insurance coverage for 10 years; buyers of second-hand UK properties need to purchase insurance, with costs ranging from £100 to £500.

                Key Points to Note When Applying for a UK Property Mortgage

                1. Prepare necessary documents: UK mortgage applicants need to provide evidence of British Citizen or BNO Visa identity, proof of address, three months of bank statements, and proof of down payment funds. It’s important to note that different banks have varying requirements for document validity. For instance, BEA (Bank of East Asia) requires buyers to provide two years of tax bills, six months of salary slips, and statements; HSBC only requires one year of tax bills, but the rest of the requirements are similar to BEA.
                2.   HSBC BEA (Bank of East Asia) Bank of China
                  Tax Bill 1 Year 2 Years Latest
                  Salary Slip 6 Months 6 Months 3 Months
                  Monthly Statement 6 Months 6 Months 3 Months
                3. Allocate Time for Opening a GBP Account: As a popular migration destination, many Hongkongers plan to open offshore accounts to move their assets out of Hong Kong. To avoid affecting the mortgage application timeline, it’s advisable to open a GBP account well before applying for the mortgage.
                4. Be Aware of Additional Charges: If you plan to transfer GBP from Hong Kong to a UK account monthly, besides considering foreign exchange risks, you should also be aware of potential transaction fees. For instance, with HSBC, if you have an Advanced or Premium account in the UK, you can perform global online funds transfers. However, for standard accounts, electronic remittance methods may incur additional fees.

                Pitfalls in UK Property Transactions

                Pitfall One: Unfinished UK Property Projects

                Just like in Hong Kong, the UK also has off-plan properties. However, UK off-plan properties do not have a “key date,” only an estimated completion date specified by year and quarter. This flexibility often results in projects being “left unfinished” as developers delay handovers significantly. UK off-plan property buyers should note that contracts only offer a Long Stop Date for protection, typically 12-18 months after the expected completion date. Developers can hand over the property anytime within this period without any compensation to the buyer. Hence, buyers should be prepared for flexible timelines.

                Pitfall Two: Credibility of Agents/Developers

                Often, developers use deposits from off-plan buyers as funding for construction projects. Some smaller developers might pre-sell without official government approval. If the developer faces liquidity problems, prospective buyers might bear the risks. Therefore, it’s recommended to choose reputable, large-scale developers.

                Moreover, UK property buyers should be aware that estate agents selling UK properties in Hong Kong are not regulated and do not hold any licenses. Hence, buyers should research and verify the background and reputation of the agent before engaging.

                Pitfall Three: Return Guarantees

                No investment comes with guaranteed returns. UK property buyers shouldn’t be misled by such claims. Even if developers genuinely offer rental guarantees, they might outsource rental services to rental companies. If these companies go bankrupt, the buyer has no recourse. Additionally, many rental agreements might not cover certain taxes payable by the buyer. Hence, if buyers plan to hire rental companies for their UK properties, they should opt for those regulated by the government.

                FAQs Related to UK Property Mortgages

                1. Under what circumstances can a mortgage be rejected?
                2. Each bank has different approval criteria. Some might not approve mortgages for older properties, properties with a small area, or those with structural issues. Especially renovated old buildings have had mortgage rejections in the past. For instance, BEA (Bank of East Asia) clearly states they won’t approve mortgages for buyers who own more than three UK properties and won’t consider properties with high ground rents or buildings over 18 meters without external wall structures. HSBC, given the impact of the COVID-19 pandemic, has stricter requirements for high-ratio mortgages and currently won’t approve 85% mortgages.

                3. Can Hongkongers get up to 90% mortgage for UK properties?
                4. Generally, when Hongkongers apply for a mortgage for UK properties, they can get up to 70% of the property value, with most mortgage terms lasting for 20 years. Most banks’ UK property mortgage plans require payments in GBP, indirectly exposing Hong Kong owners to currency exchange risks.

                5. What are Freehold and Leasehold?
                6. Freehold means the property is owned permanently by the owner. The owner can choose whether to sell the land along with the property. Naturally, properties with freehold status are valued higher. Leasehold properties typically have lease terms of either 90 or 120 years, requiring annual ground rent and maintenance fees. When the lease term expires, there’s a risk of the land being reclaimed.

                7. What is the Help to Buy Mortgage Scheme?
                8. The “Help to Buy” scheme allows UK citizens and those with legal residency visas to purchase their first home by paying just 5% down payment. The UK government provides a housing loan ranging from 15% to 40%. For the first five years, buyers don’t have to pay interest, while the remaining loan amount can be mortgaged through a bank. This scheme is only applicable for first-time buyers or those changing homes, with a property price cap of £600,000.

                  Being a global financial center, the UK witnesses a high influx and outflux of professionals from various countries. Additionally, the UK’s “BNO 5+1” immigration visa policy has led many Hongkongers to reconsider immigration, inevitably increasing the demand for housing in the UK. This rise in demand will likely result in property prices steadily increasing. Regardless of whether it’s for personal use or investment, buying UK properties seems to be a good choice.

                  After this comprehensive guide, you should have a deeper understanding of the process of buying UK properties and the procedures for applying for UK property mortgages. However, the information provided might change based on UK policies and market factors. If you’d like to stay updated with the latest UK property information, please leave your contact details, and we’ll proactively provide you with the latest updates!

                  Ashton Hawks was founded by a group of seasoned property investment experts. We offer professional real estate consultancy services to investors interested in overseas property investments. We also provide diversified property investment portfolios for reference, ensuring our esteemed clients are always in the loop and can seize every opportunity.

                Disclaimer:The information, text, photos contained herein are provided solely for the convenience of interested parties and no warranty or representation as to their accuracy, correctness or completeness is made by Ashton Hawks or the sellers, none of whom shall have any liability or obligation with respect thereto. These offerings are made subject to contract, correction of errors, omissions, prior sales, change of price or terms or withdrawal from the market without notice. Information provided is for reference only and does not constitute all or any part of a contract. Ashton Hawks and its representatives work exclusively in relation to properties outside Hong Kong and are not required to be nor are licensed under the Estate Agents Ordinance (Cap. 511 of the Laws of Hong Kong) to deal with properties situated in Hong Kong. Digital illustrations are indicative only. *Rental yield is projected by the agency and not guaranteed by the developer.



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