Comments on “My Home Purchase Plan”

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“My Home Purchase Plan” (「置安心資助房屋計劃」) is an plan announced in the 2010-2011 policy address by the Chief Executive of HKSAR, Mr. Donald Tsang.

Under this Plan, the Government will provide land for the HKHS (Hong Kong Housing Society) to build “no-frills” small and medium flats for lease to eligible applicants at prevailing market rent. The tenancy period will be up to five years, within which the rent will not be adjusted. Within a specified time frame, tenants of the Plan may purchase the flat they rent or another 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 have paid during the tenancy period, and use it for part of the down payment.

The Government has already earmarked sites in Tsing Yi, Diamond Hill, Sha Tin, Tai Po, Tuen Mun and other areas for a total of some 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 helping the sandwich class with flexibility in their home purchase 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 high which is not a health saturation and start forming up an “Economic Bomb”. As the “Property Market” is one of the main factors with Hong Kong’s economic environment, if the “Bomb” pops, Hong Kong’s economic will be affected badly. But in the other hand, the Government does not want to affect the growth 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 payers, they are mainly separated in to 2...
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