My Home Purchase Plan

Under this Plan, the governing volition provide land for the HKHS (Hong Kong living accommodations Society) to build no-frills small and medium like a shots for lease to eligible appli squirtts at prevailing market rent. The tenancy period go away be up to five years, within which the rent will non be adjusted. within a specified time frame, tenants of the Plan may purchase the flat they rent or a nonher flat under the Plan at prevailing market price, or a flat in the cloistered market. They will receive a subsidy equivalent to half of the sack up rental they stomach paid during the tenancy period, and use it for part of the subject assumement.The regime has already earmarked sites in Tsing Yi, Diamond Hill, Sha Tin, Tai Po, Tuen Mun and new(prenominal) beas for a total of slightly 5000 flats to be built under the Plan. The first hurtle will provide ab by 1000 flats in Tsing Yi by 2014. In the point of view of the Government, they would like to wisely spending the m oney of parcel the sandwich dissever with flexibility in their home purchase intention, including the resource of opting to purchase the flat they rent, another flat under the plan, or a flat in the private market which also want to inspection and repair on slowing down the raising on both rental and purchase prices currently in the market.The Government thinks that the current price in the market has been raised too fast and too high which is not a health saturation and start forming up an Economic die. As the Property Market is one of the main factors with Hong Kongs sparing environment, if the Bomb pops, Hong Kongs economic will be affected badly. notwithstanding in the other hand, the Government does not want to affect the process of the real estate too much and too fast, therefore the Government implies with this soft plan in order to balance with the situations.For the tax concedeers, they argon mainly separated in to 2 groups the group which cannot enjoy with the p lan and the suitable applicants. For those who do not grow the right to enjoy with the benefits are mainly the deal who are either already owning a flat, or those quite a little who are not qualified ascribable to higher incomes. These good deal might not feel happy with the Governments actions. For those who conduct already owned their own place, when the Government bread and butter plan comes, that means there will be more people able to subvert their own place.In the last few years, the economic situation of Hong Kong was not good and people were very careful on using their money, which make the banks dropped their interest rate of borrowing in order to attract people to borrow money either on buying flats or other usages. With the use ups on mortgaging is rising due to this program, the interest rate will then fool the potential on rising. This will affect to those people who already own their own place for living have to pay more on the mortgage pay back or need to extend the time of pay back as the raising of the interest.The Government has setup very tight rules on the incomes and assets on qualifying the applicants for the supporting program in order to make sure all the qualified applicants are the users of the properties. Those people who do not qualify for the program due to higher income might be the most unhappy group as they would think the Government does not take care of them. Since the property prices have been increased so much in the last 5 years, although they have higher incomes, they still cannot afford the down payment on purchasing a place.For the group of people who are the qualified applicants, of course they will be very concerned for this supporting program. However, they have to wait until the south half of 2014 for the building completion and there will be totally 5000 units, which is really Too Little Too Late Another fuss is that, the Government now estimating that the price of a 500 feet unit is 3 million, whic h would only apply to those flats in the remote areas.The prices for the urban residents are already far outstripped with it. Who can predict and guarantee how would the real estate price will be after 7 years of time (The think building will be completed after 4 years, the applicants have to rent and live there for 3 years before they can own)? In case of the property prices continue rising, those 300 thousand which is sledding to be rebate from the Government still not enough to pay for the down payment.If the property prices rapidly decline, those applicants will be falling into a dilemma situation. Overall, to solve the housing difficulties of Hong Kong there are many ways, how the My photographic plate procure Plan may receive with the desired results really depends on the future development of the real estate market trends. However, the My Home Purchase Plan does not really may not really be able to help on the current unhealthy situation on the property market.In my opini on, I would suggested the Government should plan on some relaxation on the income limit for public housing and pay more attention on taking care of the middle and lower class families. In fact, the magnitude of increase in property prices and rents, is seriously out of the line with the general publics income, which directly affecting the caliber of life. The Government should pay more attention on how to plan on the public housing supply and how to make better use of resources balance.