Accomodation - HKPA
Accomodation
Information
How to rent
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Things of concern
The city centre is usually much more expensive than the suburbs, but you should also take the transportation into account if you work in the city or go there often. There should be a balance between the rent, the transportation, and all other expenses. According to some experts, a resident should not spend more than 35% of their income on rent alone. However, in reality, for some cities like London, renters usually pay more than half of their income for rent in London.
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Where to life
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Own a property
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Equity Loan
Eligibility
If you're buying a new-build home as a first-time buyer, you can apply for the equity loan to get help with some of the cost of the property.
- 18 or over
- A first-time buyer
- Able to afford the fees and interest payments
You cannot get the equity loan if you have ever:
- Owned a home or residential land in the UK or abroad
- Had any form of sharia mortgage finance
The property you buy with your equity loan must be:
- A new-build
- Sold by a Help to Buy registered homebuilder
- The only home you own and live in
- It must not have been lived in by anyone before you buy it
Loan and Repayment
Buyer puts down a deposit of at least 5% on a new-build property, while the government lends up to a further 20% (or 40% if you are buying in London), creating a total deposit of 25% (or 45% for Londoners). Mortgage is needed to cover the rest of purchase.
When you sell your property, you will pay back 20% of your home’s sale price to the government, regardless the new value of the property. For example, if you bought your home for £250,000 but sold for £300,000, the government would have lent you £50,000 (20%) initially, but you’d need to repay £60,000 (still 20%) when you sell.
You can repay the equity loan at any time before you sell it without penalty, as long as it is in chunk of at least 10% of your home’s current market value.
Information
Shared Ownership
Eligibility
Your household earns £80,000 a year or less (£90,000 a year or less in London)
You cannot afford all the deposit and mortgage payments for a home that meets your needs
One of the following must also be true:
You are a first-time buyer
You used to own a home, but cannot afford to buy one now
You own a home and want to move but cannot afford a new home suitable for your needs
You are forming a new household, for example after a relationship breakdown
You are an existing shared owner and want to move
Buying more shares
You can buy some of your home after you become the owner. This is known as “staircasing”. You can buy shares of 5% or more at any time.
If you bought your house in 2021 you may also be able to buy shares of 1% each year for the first 15 years. Ask your landlord if this applies to you. You cannot buy shares of 2%, 3% or 4%. The cost of your new share will depend on how much your home is worth when you want to buy the share. If you want to buy a share of 5% or more, you will need to pay for a valuation by a surveyor. The surveyor must be registered with the Royal Institution of Chartered Surveyors (RICS).
If you want to buy a 1% share, the price will be based on the original price of your home, increased or decreased in line with the House Price Index (HPI). Your landlord will give you a HPI valuation at least once a year and whenever you ask to buy a 1% share.
Selling your home
If you own a share of your home, the landlord has the right to find a buyer for your home. The landlord also has the right to buy it first (known as 'first option to buy' or 'pre-emption').
You can also sell your share yourself if the landlord does not find a buyer and they do not want to buy it themselves. If you own 100% of your home, you can sell it yourself.
How to apply
To buy a shared ownership home, you need to register with the Help to Buy agent in the area where you want to live.
Information
Individual Savings
Accounts (ISAs)
Cash ISAs
Stocks and shares ISAs
You own a home and want to move but cannot afford a new home suitable for your needs
Innovative finance ISAs
Lifetime ISAs
Buying more shares
You can buy some of your home after you become the owner. This is known as “staircasing”. You can buy shares of 5% or more at any time.
If you bought your house in 2021 you may also be able to buy shares of 1% each year for the first 15 years. Ask your landlord if this applies to you. You cannot buy shares of 2%, 3% or 4%. The cost of your new share will depend on how much your home is worth when you want to buy the share. If you want to buy a share of 5% or more, you will need to pay for a valuation by a surveyor. The surveyor must be registered with the Royal Institution of Chartered Surveyors (RICS).
If you want to buy a 1% share, the price will be based on the original price of your home, increased or decreased in line with the House Price Index (HPI). Your landlord will give you a HPI valuation at least once a year and whenever you ask to buy a 1% share.
Selling your home
If you own a share of your home, the landlord has the right to find a buyer for your home. The landlord also has the right to buy it first (known as 'first option to buy' or 'pre-emption').
You can also sell your share yourself if the landlord does not find a buyer and they do not want to buy it themselves. If you own 100% of your home, you can sell it yourself.
How to apply
To buy a shared ownership home, you need to register with the Help to Buy agent in the area where you want to live.
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