My Home Purchase Plan

on a start floor this program, the Government will provide land for the HKHS (Hong Kong Housing Society) to build no-frills small and medium categorics for renting to eligible applicants at prevailing market rent. The tenancy period will be up to quint years, within which the rent will not be adjusted. Within a specified date frame, tenants of the Plan may purchase the flat they rent or anformer(a) flat under the Plan at prevailing market price, or a flat in the private market. They will receive a subsidy equivalent to half of the net rental they nominate paid during the tenancy period, and use it for function of the down payment.The Government has already earmarked sites in Tsing Yi, Diamond Hill, Sha Tin, Tai Po, Tuen Mun and other atomic number 18as for a total of whatsoever 5000 flats to be built under the Plan. The first project will provide about 1000 flats in Tsing Yi by 2014. In the point of view of the Government, they would like to wisely spending the money of dish outing the machinate class with flexibility in their home purchase architectural plan, including the choice of opting to purchase the flat they rent, another flat under the plan, or a flat in the private market which also want to help on slowing down the raising on both rental and purchasing prices currently in the market.The Government thinks that the current price in the market has been raised too fast and too eminent which is not a health saturation and start forming up an Economic Bomb. As the shoes Market is one of the main factors with Hong Kongs economic environment, if the Bomb pops, Hong Kongs economic will be affected badly. But in the other hand, the Government does not want to affect the growth of the authorized estate too much and too fast, in that respectfore the Government implies with this soft plan in edict to balance with the situations.For the tax payers, they ar mainly separated in to 2 groups the group which cannot enjoy with the plan and the qualif ied applicants. For those who do not conduct the right to enjoy with the benefits be mainly the pot who are either already owning a flat, or those people who are not qualified due to higher(prenominal) incomes. These people might not feel happy with the Governments actions. For those who have already have their own place, when the Government supporting plan comes, that means there will be more people able to buy their own place.In the last few years, the economic situation of Hong Kong was not easily and people were very careful on using their money, which made 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 needs on mortgaging is rising due to this program, the interest rate will then have the effectiveness 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 rai sing 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 closely unhappy group as they would think the Government does not take care of them. Since the stead prices have been increased so much in the last 5 years, although they have higher incomes, they still cannot ease up the down payment on purchasing a place.For the group of people who are the qualified applicants, of lean they will be very concerned for this supporting program. However, they have to wait until the second half of 2014 for the mental synthesis completion and there will be further 5000 units, which is really Too Little Too deeply Another problem is that, the Government now estimating that the price of a 500 feet unit is 3 million, which 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 plug how would the real estate pricing will be after 7 years of time (The intend 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 constant of gravitation which is going 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 Home Purchase Plan may receive with the desired results really depends on the future day 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 opinion, I would suggested the Government should plan on some relaxation on the income delimit 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 global publics income, which directly affecting the quality 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.