As the housing market has been going down in the past few months, David plans to buy an apartment in Kow Loon as his primary residence for HK$9,250,000 this year. David is a Hong Kong permanent resident who does not own any other property in HK. The legal fee of the transaction is around HK$10,000.The commission is 1% of the purchase price. In addition, David decides to buy the Fire insurance for HK$12,000.The apartment needs to be renovated in order to have a ready-to-move-in condition. The renovation cost is estimated to be $300,000.For the stamp duty, please refer to the following table: Duty Payable Amount or Value of Consideration $1 - $2,000,000 $2,000,001 - $2,351,760 $2,351,761 - $3,000,000 $3,000,001 - $3 

Required: 

a) Assume that David can get the maximum amount of mortgage permitted under the current regulation to finance the purchase. Estimate how much cash David would need to prepare to make this acquisition, including various fees. Show all your computations to support your answers.  

b) Discuss at least THREE issues that the owner should consider when living in a property mortgaged with a bank in HK.