Hong Kong Village Houses

If you are planning to buy a village house in Hong Kong, the following are some important considerations:

ensure your lawyer has plenty of experience purchasing village houses because the land/deed issues are more complex than buying into a typical high rise block;
although you will have no management fees to worry about, getting neighbours to share the cost for common area repairs, septic tank pumping, etc. can be a nightmare; look for a Deed of Mutual Covenant that may provide rules in this situation
don't expect your bank to shower you with cash. A bank might offer up to 60% or 70% mortgage for a village house, and the maximum mortgage term will be lower than a typical high rise block;
almost every village house has some type of illegal structure (officially called UBW or unauthorised building works). The sale contract typically includes a clause that states you are buying at your own risk so attempting to claim compensation from the former owner or lawyer if the government demands it's removal is futile;
almost every village house has some type of parking issue. If you have a car, ensure that the village house has adequate parking and ensure that it is included in the preliminary and sale and purchase agreement. There have been numerous accounts of problems regarding parking spaces almost all of which are vicious and have prompted a reluctant early exit of the premises by the new owner;
village houses only 'own' the land out to 1ft around them. This means that the open ground that may be around a village house may be built upon, blocking the view and/or access.
The only access guaranteed to a village house is the 1ft buffer, therefore any roads that lead to it, if they are privately owned, may also be built upon and/or closed.
for ground floor apartments: check whether garden areas are government land, deed land, or leased from government. Leasing a small garden area from government around a village house is not expensive as the costs are approx $270/sq. metre/per year. However, there is a one off $8k admin fee.

All sub-headings: Hong Kong Land Zoning & Ownership Gross Floor Area Village Houses Mortgages, Credit & Loans Buying Property Stamp Duty Property Purchase Process Income & Outgoings Selling Property Pitfalls

ExpatFlats - Village Houses