Enhancing the My Home Purchase Plan

31.     Some families, although earning up to $40,000 a month, and who can afford a property in the long run, do not have enough savings for a down payment.  The Government, in collaboration with the Hong Kong Housing Society (HKHS), will continue to implement the My Home Purchase Plan (MHPP) to provide “no frills” small and medium rental flats so these families will have time to save up.

32.     The MHPP is positioned above the new HOS.  It offers another choice on the housing ladder.

33.     The tenancy period of MHPP flats will be up to five years.  To allow tenants to save according to their plans, the rent will not be adjusted during the tenancy period.  The MHPP will also provide tenants with a subsidy, equivalent to half of the net rental paid during the tenancy period, to help them cover part of the down payment.

34.     The public generally considers the MHPP sufficiently flexible.  Given the volatility of the property market, if MHPP flats are to be sold at the prevailing market price, then tenants intending to buy such flats under the “rent-and-buy” arrangement may find their plans upset by soaring prices.

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