“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 ...view middle of the document...
For the tax payers, they are mainly separated in to 2 groups: the group which cannot enjoy with the plan and the qualified applicants.
For those who do not have the right to enjoy with the benefits are mainly the people who are either already owning a flat, or those people who are not qualified due to higher incomes. These people might not feel happy with the Government’s actions.
For those who have already owned 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 good 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 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...