🏠 How can young people take the first step? Home buying problems and solutions

The editor will help you step by step to break down the pain points of young people buying cars and provide feasible solutions!

Hong Kong has always been known as a "housing miracle," consistently ranking high internationally. For young people, buying a home can seem like an unattainable dream. Many friends born in the 1990s and even the 2000s have told me, "I'll never be able to buy a home!" But is it really impossible? Not necessarily.

To take the first step, you must first understand the challenges young people face and then consider solutions. Today, we'll analyze several key challenges and offer practical strategies, so you can understand your own situation and find your own path to success.

1️⃣ The main difficulties faced by young people in buying a house⚠️

High property prices

• Hong Kong's property prices have long been at the top of the world's list, with small first-floor units often costing millions.
• Taking a floor of NT$5 million as an example, the down payment would be at least NT$500,000 to NT$1 million, which is an astronomical figure for young people just entering the workforce.

Difficulty saving for the first installment

• Labor cost increases cannot keep up with the rise in property prices.
• Young people have to pay for the Mandatory Provident Fund, taxes, and high living expenses, so it is extremely difficult to save for a down payment.

Income requirements

• Banks conduct stress tests when approving mortgages, and generally require that repayments do not exceed 50-60% of income.
• If the salary is only 20,000 or 30,000, the house price you can afford is limited, and your choices are naturally restricted.

Quality of life trade-offs

• Some people would rather continue to rent because they don't want to sacrifice travel, entertainment, and food.
• Mortgages mean decades of responsibility, and not everyone is psychologically receptive to this.

👉 My opinion: Many of my friends don’t really want to buy a property, but they just “can’t afford it”. The biggest problem is that the down payment and labor costs can’t keep up with the property prices.

2️⃣ Solutions that young people can consider💡

Government funding schemes

• Home Ownership Scheme Flats: These flats are at a discount to the market price and are the first property purchase target for most young people.
• Green Subsidy Housing : Cheaper than Home Ownership Scheme (HOS), but limited in supply and requires a lottery.
• First Home Buyer Scheme : Offers discounted properties to first-time homebuyers.

👉 Editor's advice: Don't be bothered by the remote location of your HOS flat, as having a roof over your head is only the first step before you can move on to a new flat.

Parent support

• Many of Hong Kong's "home buyers" have their parents providing financial support, especially for the down payment.
• Parents’ help can speed up the progress, but the editor reminds: coordination must be clear to avoid family conflicts.

Consider small units or remote areas

• Although small units (nano buildings) have small spaces, the entry threshold is low.
• Housing prices in remote areas (such as Tuen Mun, Tin Shui Wai and Yuen Long) are relatively cheap, making them suitable as a "stepping stone".

👉 From the editor’s perspective: the first floor is not necessarily your “dream house”, but rather a “stepping stone”.

Savings and Financial Management

• Create a savings plan, for example, force yourself to save 20%-30% of your salary every month.
• Invest in funds and time deposits to increase opportunities for capital appreciation.
• Reduce large-ticket purchases, such as cars and luxury goods.

👉 Editor’s take: Disciplined financial management can turn dreams into reality.

cooperative real estate

• Buy a home together with siblings or your partner and share the down payment.
• But be careful about legal protection, and it is best to clearly state the shares and responsibilities.

3️⃣ Practical steps: Young people take the first step📋

Step 1: Calculate your abilities

• Use a mortgage calculator to estimate how much you can borrow.
• Take a look at your income and expenses to ensure that your mortgage payments do not exceed 50% of your income.

Step 2: Set goals

• How much do you want to buy a house?
• When do you want to get on board? (e.g. within three years)
• Create a savings plan based on your goals.

Step 3: Do your homework

• Check the transaction records on the Rating and Valuation Department website.
• Look at more properties and compare the location, age, transportation, and facilities.

Step 4: Enroll in government programs

• Pay attention to the application dates for Home Ownership Scheme, Green Home Ownership Scheme and Starter Home Ownership Scheme.
• Don't take chances and be sure to actively participate in the lottery.

Step 5: Mental Preparation

• Accepting the first floor may not necessarily be the ideal unit.
• Paying a mortgage is a long-term process, so you need to be patient.

4️⃣ Real Case 👤

Ah Jia, 29, earns $25,000 a month. Feeling he couldn't afford to buy a home, he continued to rent a flat in Kowloon for $12,000 a month. At 30, he and his girlfriend decided to save for a down payment together, each contributing $8,000 a month. Two years later, they had saved nearly $400,000, and with a little help from their parents, they were able to win a Home Ownership Scheme flat.

Although the unit is in a remote area of ​​the New Territories, the monthly mortgage payment is only $12,000, which is not only cheaper than my previous rent, but also allows me to accumulate assets. Ah Jia said, "I used to think buying a property was just a dream, but I've discovered that with a plan and determination, it's truly possible."

👉 This example proves that young people are not without hope. As long as they have a strategy and take it one step at a time, they can take the first step.

5️⃣ Editor’s Summary✨

It's a common understanding in Hong Kong that young people struggle to buy homes. But difficulty doesn't mean impossibility. The key points are:

• Face the reality and don't wait for artificial price increases
• Take advantage of government funding programs to increase your opportunities
• Understand financial management and save consistently
• Willing to lower expectations and use smaller units or remote properties as a springboard
• Seek support from parents or partners when necessary

🙋♀️ Editor's message:
Buying a property isn't a one-step journey; it's a steady accumulation of steps. The first floor may not be perfect, but taking that first step brings you closer to your dream than standing still.