Buying Property: Your Advice and Views

[Charlie]

I had this thought the other day when I was on second ring road by Yulin Shenghuo Guangchang. I always thought the development was cool in a seedy kind of way (similar to Chunking Mansion in HK) and the location has always been good, on the edge of Yulin and second ring road. But now that the second level of the highway has gone up it’s pushed up against a perpetual double-decker torrent of cars and traffic. It would be awful to live there.

[Rick in China]

@ng

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Agent told me there will be 2% agent fee & a kind of sales tax to govt i.e about 6-7%… so it will add about 10% up as cost.

If you consider new properties have purchase taxes and other processing fees, buying 2nd hand isn’t much different – and there are ‘ways’ to avoid 2nd hand transfer fees if you know people 😀

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If there is any another hidden costs?

For new purchases you usually have to pay some other fees up front when you take charge of the apartment, namely wuguan/other monthly fees for the first (or until the end of the current) year. You should also keep in mind you’ll have pressure to buy a parking spot, and they’re expensive (mine was 150k rmb, cash). If you don’t drive, keep in mind: if the spots are all sold out..which they sell out fast, and you later want to sell or rent the place but have no spot and the buyer/renter drives, you may end up cutting down the value of your sale/rental.

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And if a foreigner can alone buy a property here?

You can buy apartments at any place that has a foreigner sales certificate or whatever it is. Most any high end development has one, but you should verify that as soon as you walk in to a new development sales office or talk to an agent about 2nd hand apartments.

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And any idea who is the best developer here?

There are lots of good developers, and more bad ones. Many foreign developers are better but sometimes they offload a lot of the actual development or after-sales service to domestic companies, so it’s not just which developer’s name is on the development but who is actually doing the work/going to be managing the complex afterwards.

I bought a place next to Ikea, City Springs – they’re almost done building the 5 star millenium hotel or whatever in the complex, it’s a Singaporean developer. Happy with everything so far, actually the Wu Guan has been very good to me. Many examples/stories to support that but not enough room in a post 😉 Good WuGuan and making friends with them (and the guards) will make life easier in many instances here.

[ng so fan]

Thanks very much Rick in China. Your info is very useful to me. I am still exploring different areas of Chengdu and will definitely go to take a look of the City Springs. After having read all the other posts and I am not in a rush at all, I would take my time too. Many brand new buildings here are now selling around 12,000rmb/m2, that is in my mind less than 1/10 of the property price in HK whereas average income in HK is not 10 times more of Chengdu…and of course it is hard to compare the two cities.. and we all know HK property is in the peak and crazy stage. Anyway, I agree with Brendan that there will be a justification..

[Rick in China]

Regarding property prices, when I think of a city dropping in prices, I really consider other factors than the macro market – for example, Chengdu’s per sq.m price is still way less than other cities in China yet, while there are TONS of developments springing up – there are also tons of business developments and large companies still moving in. Tianfu SW park is one example – where space sells out (and is filled, not just left empty) before each new section is complete. Combined with the major infrastructure additions, as long as businesses are on the increase I don’t see any big drops in the real estate market to match.

BTW City Springs is sold out, when I bought last November, there were literally 2 units to choose from – right next to each other, and nothing more 😀 I don’t know if any second hand units are for sale, but if there are I can vouch for the best wuguan interactions I’ve had after living here in many compounds over the last 9 1/2 years.

[ng so fan]

9 1/2 years in China!! Not easy and you must be a Chinese in one of your previous lives to have such a link with China! 🙂

Yes indeed, Shanghai has seen 200,000/m2.. though it might be quite an extreme case, I think even a 20,000/m2 in CD isnt far away. Among several 2nd tier cities I have been, I do find CD a nice place to live and with a lots of opportunities, development going on. So whether or not there is an justification, giving a 5 or 10 years more, price now will be a very good deal, I believe 🙂

[Ian]

Spent days looking at apartments, finally found a place we like, but now they are asking me to supply paperwork. I want the apartment in my wife’s name like most foreigners in Chengdu but they are saying because she is married to a Lowai this is an issue. I have never heard of this problem before I have a few friends in Chengdu and the apartments name is in the wife’s name As Ray said it’s demoralizing

[Rick in China]

You’re talking to the realtor/sales office, right? They likely just don’t know the procedure.

Why don’t you talk with one of the foreigners who bought and kept it in their wife’s name to find out which bureau you need what paperwork (any specific paperwork they said is required?) from, and start the process of getting what you need? Also, since you’re already married, the apartment will likely have both of your names on it – people who buy it as singles (Chinese) need to provide a certificate of single-ness or whatever it is, and married couples who buy would own the property together..

[Ian]

It’s seems they changed the law in August. So my friends never had this issue.

[Urglefloggah]

That seems like a really bizzarre rule to me. Let me ask my wife, who’s in the same situation as yours, and see if she has heard anything about this.

Oh and Mike, yes, I know very well that you deliver here in Nancheng Duhui. For accuracy I should have said “no takeaways apart from Mike’s Pizza”. Now that should teach me not to make general statements…

[Ian]

Hopefully will finish sorting all the paperwork out today. I will update on what is needed.

[Zharahk]

I wonder if it might be easier to divorce her, and then remarry after all the paperwork is done for the purchase.

[Billy]

y’know, i’ve had savings accumulating in investments overseas for quite a few years now.. if i keep on enjoying myself over the next year, who knows? i may have to buy a place too!

[Billy]

i just wanted to add that shit is hella cheap so now is the time to buy for all laowai with a bit of cash saved.

[Gabby.Yan]

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We are currently looking for places close to the planned subway lines.

I recommend you buy property in Pixian county, near the subway. Much cheaper than chengdu 1, 2, 3rd ring road.

[Tracy Lee]

Yeah, I think that buying an apartment out of 1,2,3 ring road but near subway station is a good choice. Air is much fresher and the subway is quite handy. Recently, I heard that the price of houses in CD rise again.

[Ian]

So after 5 days of paperwork. Here is the low down or my story.

We found a really great new build near Longquan a few minutes from the new subway. We chose Longquan for location and price, because within the third ring road is just two expensive. Also for me it’s about space I can have a 130sq for the same price as a 70sq within the third ring road.

The government changed the housing laws regarding Chinese married to foreigners in Aug 2012. If you marry a foreigner and want to buy a house you both have to be on the mortgage agreement.

90% of building companies do not have the license to sell to foreigners. So the property will be in the Chinese spouse name.

Documents needed from foreigner.

Letter from Employee confirming salary and any bonus details.

Passport

Foreign Experts certificate

Police residency certificate

Marriage Book

6 Months bank statements stamped by bank manager

Certificate of no property. ( You need to go to the local government new property department to confirm no other property is in your name. )

Spouse

Huko

Salary details

Bank Statements

ID Card

Marriage Book

Next step

You need to find the local government Notary office. You need a signed letter stating that your partner will be named on the property, but you will also be paying the mortgage. They will give you twelve copies. You also need another letter stating that you are able to repay any mortgage payments just one copy. Cost 1300rmb.. Please note you will be asked in Chinese if you agree with the terms if you can not answer its a no go.

Next step you need to pay the deposit for the apartment 30% min. Sign contract and get receipts.

Next the Bank

The bank of choice is supplied by the building company. Ours was ABC bank.. you need to give them all the above documents and open an account with them. This is done via the bank manager not over the counter. Cost for application is 200 rmb.

The bank will confirm after one month if they approve the mortgage.

So we have paid the deposit just waiting for the bank to confirm. If the bank say no (which is very unlikely) we have 90 days to find another mortgage provider.

[Bella]

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We found a really great new build near Longquan a few minutes from the new subway

I am living lonquan also. But this town is a little far from centre city. And I think its Living facilities is not comfortable.

[Ian]

They will have the subway next year. I think Longquan is a nice town, but will eventually be swallowed by Chengdu.

[Urglefloggah]

Yeah, Longquan is a nice little place. I’m working at the CUIT campus just a couple of minutes drive from there, and from what little I’ve seen of Longquan proper it’s a really beautiful town. Good luck out there!

[Ian]

I won’t be moving down that way until the end of the year. My first step is to find somebody who can fit a central heating system

[Author]

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