Restrictions on Foreign nationals buying realty

[Tony_onrock]

New policy will be announced shortly allowing only foreign nationals who have worked or studied in China for at least one year to buy a house or apartment for self-use. Information very reliable.

 

Sorry Guys.

 

Please read that darn regulation once it is out and lets figure out a way to get around it.

Edited July 18, 2006 by Tony_onrock (see edit history)

[Yuanyang]

Ok, but that doesn't sound like it would stop my wife from buying. Do you have a link to this policy?

[SheLikesME?]

Wife already has a house paid for, but we want a 2nd home in Dalian. I imagine she will find a way. No matter the law, there is always the Chinese way.

 

Hmm, links, ya links. My wife be de law........er and I am de link to er. Yuan what about dat link ta yer rear paw? Haurts?

[rogerluli]

New policy will be announced shortly allowing only foreign nationals who have worked or studied in China for at least one year to buy a house or apartment for self-use.  Information very reliable.

 

Sorry Guys. 

 

Please read that darn regulation once it is out and lets figure out a way to get around it.

231850[/snapback]

Laopo also heard this on Chinese TV business news. We had already realized that we probably do not have enough money to pay cash for the kind of house we want now anyway. So in financing it will have to be only in the Chinese citizen's name.

[stacato]

New policy will be announced shortly allowing only foreign nationals who have worked or studied in China for at least one year to buy a house or apartment for self-use.  Information very reliable.

 

Sorry Guys. 

 

Please read that darn regulation once it is out and lets figure out a way to get around it.

231850[/snapback]

Laopo also heard this on Chinese TV business news. We had already realized that we probably do not have enough money to pay cash for the kind of house we want now anyway. So in financing it will have to be only in the Chinese citizen's name.

232534[/snapback]

We just bought an apartment and yes, on her name only. They wouldn't allow my name on the loan

[rogerluli]

New policy will be announced shortly allowing only foreign nationals who have worked or studied in China for at least one year to buy a house or apartment for self-use.  Information very reliable.

 

Sorry Guys.  

 

Please read that darn regulation once it is out and lets figure out a way to get around it.

231850[/snapback]

Laopo also heard this on Chinese TV business news. We had already realized that we probably do not have enough money to pay cash for the kind of house we want now anyway. So in financing it will have to be only in the Chinese citizen's name.

232534[/snapback]

We just bought an apartment and yes, on her name only. They wouldn't allow my name on the loan

232629[/snapback]

That has been the policy before though. If there is a mortgage only a Chinese citizen can sign. But soon a foreigner who can pay cash will not be able to buy a house either.

[Tony_onrock]

Just figured a way out of this restriction. As both my wife and I are U.S. citizens living in China for only a few months, we can not buy a house or apartment. At the same time the seller will have to pay 5% tax if he/she sells within 5 years of purchase. I talked to some bankers and consulted government people here in Shanghai and sort of figured out a way to get around both.

[PapaBear]

Just figured a way out of this restriction.  As both my wife and I are U.S. citizens living in China for only a few months, we can not buy a house or apartment.  At the same time the seller will have to pay 5% tax if he/she sells within 5 years of purchase.  I talked to some bankers and consulted government people here in Shanghai and sort of figured out a way to get around both.

235345[/snapback]

You sort of figured out a way around these regulations/restrictions? Well then..... let's hear your way 'round 'em.

 

Just curious. As for ourselves, Lao Po and I are in the remodeling and furnishing phase on our apartment we purchased in Beijing (when I say "we purchased", I mean the loan and house registration is in her name and the funding comes from me).

 

Of course, what's mine is her's and vise-versa.

 

We plan on taking my parents (in their late 70's) to meet her mother (early 80's) and siblings next year. Then we'll have my children visit with us in August 2008 (8/8/08) for the Olympics.

 

All in all, the process is quite exciting and challenging!

 

PapaBear B)

Edited August 3, 2006 by PapaBear (see edit history)

[rogerluli]

Just figured a way out of this restriction.  As both my wife and I are U.S. citizens living in China for only a few months, we can not buy a house or apartment.  At the same time the seller will have to pay 5% tax if he/she sells within 5 years of purchase.  I talked to some bankers and consulted government people here in Shanghai and sort of figured out a way to get around both.

235345[/snapback]

I understand that sellers are getting around the 5% surcharge on 'early' sales by sticking the buyer with the bill... If you want to buy their "house" you pay them and the gummint...

[PapaBear]

Just figured a way out of this restriction.  As both my wife and I are U.S. citizens living in China for only a few months, we can not buy a house or apartment.  At the same time the seller will have to pay 5% tax if he/she sells within 5 years of purchase.  I talked to some bankers and consulted government people here in Shanghai and sort of figured out a way to get around both.

235345[/snapback]

I understand that sellers are getting around the 5% surcharge on 'early' sales by sticking the buyer with the bill... If you want to buy their "house" you pay them and the gummint...

235477[/snapback]

We paid, I think, 2.5% to the house company. And I remember thinking that the house seller must be paying the other 2.5%, but when I specifically asked the question.....I discovered we were the only party paying the house company a commission.

 

Also, I remember our payment to them as a commission was negotiated. My wife did get the house company to accept a lesser amount during our negotiations.

 

It was very difficult for myself to be involved in the negotiations having to ask Lao Po every few minutes what was being discussed. She finally had to ask me to just let them talk and when she could, she would translate for me. But we did take our time and work out a deal we both understood.

 

The process may have been stressful, but now we're excited planning and designing and saving for improvements and furniture. Also, looking forward to a visit to our own space.

 

PapaBear B)

[PapaBear]

Ooops I just realized the 5% you're refering to is a tax from the State. Guess you probably understand I was talking about real estate commision.

 

Sorry about that!

 

PapaBear

[Tony_onrock]

The way is to use a mortgage loan from the buyer and rent free renting to replicate the ecnomics for the remaining part of the five year holding period.

[rogerluli]

Just figured a way out of this restriction.  As both my wife and I are U.S. citizens living in China for only a few months, we can not buy a house or apartment.  At the same time the seller will have to pay 5% tax if he/she sells within 5 years of purchase.  I talked to some bankers and consulted government people here in Shanghai and sort of figured out a way to get around both.

235345[/snapback]

I understand that sellers are getting around the 5% surcharge on 'early' sales by sticking the buyer with the bill... If you want to buy their "house" you pay them and the gummint...

235477[/snapback]

We paid, I think, 2.5% to the house company. And I remember thinking that the house seller must be paying the other 2.5%, but when I specifically asked the question.....I discovered we were the only party paying the house company a commission.

 

Also, I remember our payment to them as a commission was negotiated. My wife did get the house company to accept a lesser amount during our negotiations.

 

It was very difficult for myself to be involved in the negotiations having to ask Lao Po every few minutes what was being discussed. She finally had to ask me to just let them talk and when she could, she would translate for me. But we did take our time and work out a deal we both understood.

 

The process may have been stressful, but now we're excited planning and designing and saving for improvements and furniture. Also, looking forward to a visit to our own space.

 

PapaBear B)

235482[/snapback]

In China, it takes laopo approximately 30 minutes of intense interrogation and discussion with the waitperson to order lunch... I can only dimly imagine what will transpire in the process of buying a house... Just hope they have a big stock of puerh tea for me to drink...

[hankster]

In China, it takes laopo approximately 30 minutes of intense interrogation and discussion with the waitperson to order lunch... I can only dimly imagine what will transpire in the process of buying a house... Just hope they have a big stock of puerh tea for me to drink...

235641[/snapback]

Funny, Roger. I know what you mean.

I asked Laopo, "why does it take so long to order food. What can you possibly be asking the waitress?"

She looked puzzled and asked me, "what words you speak to waitress in usa?"

I said, " Cheeseburger, fries, Bud"

[rogerluli]

In China, it takes laopo approximately 30 minutes of intense interrogation and discussion with the waitperson to order lunch... I can only dimly imagine what will transpire in the process of buying a house... Just hope they have a big stock of puerh tea for me to drink...

235641[/snapback]

Funny, Roger. I know what you mean.

I asked Laopo, "why does it take so long to order food. What can you possibly be asking the waitress?"

She looked puzzled and asked me, "what words you speak to waitress in usa?"

I said, " Cheeseburger, fries, Bud"

235646[/snapback]

You're pushing me... ...again Hank but twice I've been in restaurants in China that featured a "Bud girl" circulating among the tables. She never seemed to do anything other than be a 'walking billboard' in her little Bud outfit...of course Bud may be allowed in China but never Wisconsin... Up North here it is a "foreign beer"...