purchasing a home in China

[chilton747]

When buying a home in China, what is the best way to transfer the funds from the US for the purchase?

[Tony_onrock]

This is a pretty difficult task, depending on the local government's attitude. By law, unless you have been in China under a student or work visa for 1 year, you can not buy and the government will not allow conversion of the money no matter how you send it in.

 

If you are buying in your SO's or other people's name, the limit for conversion is 50k US per year, per person. You can also convert 50KUS. Depending on the price, you may need several people to open up bank accounts to convert the money.

If you are legally allowed to buy, the easiest way is to send the money into the Seller's bank account and the seller can use the contract, your visa, etc to convert.

 

If you are going the second route, do not send into your account in PRC, as you may only transfer foreign currency to another person's account if that person is a close relative. Set up the accounts and transfer 50K US. into each account. Then have them convert the money and then consolidate the RMB into your account and pay for the apartment.

 

One other alternative is to talk to your bank here in PRC (such as HSBC or Standard Chartered etc) and see if they have any customer that needs US. currency and do a swap through the bank. This is not really legal but bank will help out if you are a premium customer.

 

Good luck

[rogerluli]

Tony's account may be a little different because both he and his wife are USC. What we did was use electronic transfer to laopo's account at BOC in her Hunan hometown. There she knows the bank manager and together with her father they were able to exchange the $ to RMB. The electronic transfer was only $20 at Chase. It may be more problematic for you to BE SURE that the funds have arrived in your account and then do the exchange without someone on the ground there to help.

[SirLancelot]

Tony's account may be a little different because both he and his wife are USC. What we did was use electronic transfer to laopo's account at BOC in her Hunan hometown. There she knows the bank manager and together with her father they were able to exchange the $ to RMB. The electronic transfer was only $20 at Chase. It may be more problematic for you to BE SURE that the funds have arrived in your account and then do the exchange without someone on the ground there to help.

 

Roger, I think Tony has a point in that even if one of the spouses is Chinese, she'll also have problems converting large amounts of USD into CNY. I think the Chinese government has recently--within the past year--implemented new policy to restrict the conversion of large amounts of USD to CNY by everyone, foreigners and Chinese alike.

 

However, their might be an exception when one is purchasing a house/apartment. Chilton's wife really has to look into the specifics by checking with the Bank of China and her real estate company in her city.

Edited July 30, 2007 by SirLancelot (see edit history)

[rogerluli]

Tony's account may be a little different because both he and his wife are USC. What we did was use electronic transfer to laopo's account at BOC in her Hunan hometown. There she knows the bank manager and together with her father they were able to exchange the $ to RMB. The electronic transfer was only $20 at Chase. It may be more problematic for you to BE SURE that the funds have arrived in your account and then do the exchange without someone on the ground there to help.

 

Roger, I think Tony has a point in that even if one of the spouses is Chinese, she'll also have problems converting large amounts of USD into CNY. I think the Chinese government has recently--within the past year--implemented new policy to restrict the conversion of large amounts of USD to CNY by everyone, foreigners and Chinese alike.

 

However, their might be an exception when one is purchasing a house/apartment. Chilton's wife really has to look into the specifics by checking with the Bank of China and her real estate company in her city.

 

I'm not sure about recent changes but even when we did it in early 2006 laopo's father was only allowed to exchange $10,000/day to RMB.

Edited July 31, 2007 by rogerluli (see edit history)

[chilton747]

Thanks guys for your experiences and opinions. The purchase will definitely be under 50K. My wife tells me that the house can be in both of our names. I fully expect for her to do all of the transactions in China as she is the ROC citizen. Since the purchase is under 50K and there is nothing suspicious going on, doesn't it sound reasonable that there should not be a great degree of difficulty sending the money to China for the purchase?

[SirLancelot]

Thanks guys for your experiences and opinions. The purchase will definitely be under 50K. My wife tells me that the house can be in both of our names. I fully expect for her to do all of the transactions in China as she is the ROC citizen. Since the purchase is under 50K and there is nothing suspicious going on, doesn't it sound reasonable that there should not be a great degree of difficulty sending the money to China for the purchase?

 

Under 50K should be doable. I believe the new rule stipulates that one can only convert up to $50K USD total a year. If you fall below that number, then you should be ok this year.

 

To get into the details, here is what has changed. Previously, each bank kept a file of how much you exchanged. So you can go to Bank of China and do some conversion and move on over to ICBC and do another and then move on to Bank of Agriculture and do yet more exchanges. With the implementation of the new policy, there is a national exchange bureau of some sorts which is tracking all exchanges done by any individual, via the Chinese National ID number or a foreigners passport number. So now, each currency exchange one makes, the central government is keeping a tab on it. Any individual won't be allow to make over $50K USD currency exchanges in one year.

 

But policies change quickly in China. Best advise is to have your wife go to Bank of China in her city and ask directly. Also have her ask at her real estate company.

[chilton747]

Thanks guys for your experiences and opinions. The purchase will definitely be under 50K. My wife tells me that the house can be in both of our names. I fully expect for her to do all of the transactions in China as she is the ROC citizen. Since the purchase is under 50K and there is nothing suspicious going on, doesn't it sound reasonable that there should not be a great degree of difficulty sending the money to China for the purchase?

 

Under 50K should be doable. I believe the new rule stipulates that one can only convert up to $50K USD total a year. If you fall below that number, then you should be ok this year.

 

To get into the details, here is what has changed. Previously, each bank kept a file of how much you exchanged. So you can go to Bank of China and do some conversion and move on over to ICBC and do another and then move on to Bank of Agriculture and do yet more exchanges. With the implementation of the new policy, there is a national exchange bureau of some sorts which is tracking all exchanges done by any individual, via the Chinese National ID number or a foreigners passport number. So now, each currency exchange one makes, the central government is keeping a tab on it. Any individual won't be allow to make over $50K USD currency exchanges in one year.

 

But policies change quickly in China. Best advise is to have your wife go to Bank of China in her city and ask directly. Also have her ask at her real estate company.

 

Thanks Lance and that is exactly what I will have her do and I will post the results. I think that they are keeping an eye for for terrorist money activities. It will be easy to see that I do not fall into that catagory

[rogerluli]

I don't want to buy a house - we already have one in Guangzhou - but I would like to send about ten grand so it will be there before I arrive in September.

 

This is way more than I can do with Western Union in an on line transaction. So do I need to open (or have Ping open) a bank account in China, or can I just send it to Ping's account?

 

Thanks.

 

You can send it to her account no problemo...

[rogerluli]

My wife tells me that the house can be in both of our names.

 

My understanding is that it cannot be in a foreigner's name... only PRC citizens need apply...

[chilton747]

My wife tells me that the house can be in both of our names.

 

My understanding is that it cannot be in a foreigner's name... only PRC citizens need apply...

 

My wife has told me that she would have to do the purchasing and it would be under her name. My name can be added to the deed (or whatever you call it there). This is what she has told me. If I find out any different then I will let you know. She asked me just a bit ago if she could have my name put on her current house. It seems that her family is always wanting to get her house and give it to her brother. She feels that having my name on it also would make it more difficult for them to get. She comes from rural China where the son gets all. My wife has worked hard all of her life and her family has in turn worked hard to take everything she has.

[SinoTexas]

If there is a risk of you and your wife losing the house, and ya'lls money, to her brother, I would think very hard about doing something like that. I would thoroughly investigate the legal system in China and retain an attorney to see what could be done to protect your assets. Good luck.

 

As aye,

 

Jim

[chilton747]

My wife tells me that the house can be in both of our names.

 

My understanding is that it cannot be in a foreigner's name... only PRC citizens need apply...

I asked Ying about this and she doesn't know the answer. She said things change so often and quickly that most people don't know.

 

I guess it depends on what mood they're in.

 

Chilton, you're my friend and I am sorry that the only advice I can give you is to please be careful whatever you do.

 

I do business here and have seen some unheard of in America cut-throat screwings. But, if we get stuck here I would like you as a neighbor, so if there is anything I can do for you while living here just let me know. B)

My buddy Steve I an very happy to be your friend. I am buying this house in Zhongshan because I feel it is the right thing to do. As to whether I live there sooner or later depends on how things go here. Getting to know you as I have here on CFL has taught me some valuable lessons. In this life we are given opportunity and it is up to us to seize it or release it. But as you said, we need to be careful.

Sometimes I feel that I could learn a lot more about life living in China. I am certain that you have The USA is getting kind of boring to me.

[chilton747]

If there is a risk of you and your wife losing the house, and ya'lls money, to her brother, I would think very hard about doing something like that. I would thoroughly investigate the legal system in China and retain an attorney to see what could be done to protect your assets. Good luck.

 

As aye,

 

Jim

 

Good point Jim. I guess I needed to add that everything she has had taken from her was when she lived in her hometown. This is why we will get the house in Zhongshan. They will never know we are there

[GZBILL]

When buying a home in China, what is the best way to transfer the funds from the US for the purchase?

 

For conversion of US$ to RMB you can transfer in and convert a virtually unlimited amount. The problem arises when you want to convert US$ to RMB.

 

When the issue is exchanging RMB to US$, you have several options. One is that a Chinese citizen or Chinese permanent resident can freely convert up to $50k per year for virtually any reason simply upon producing their ID card. All others have to jump through hoops and face many restrictions. A new rule allows any foreigner to convert RMB to up to $500 per day -- definitely a hassle for large amounts.

 

However, when converting the RMB realized from the sale of a property which was your principal place of residence, there is no limit. You first need to apply to SAFE (State Administration of Foreign Exchange) for approval though, which is not very difficult.

 

You do know that an expat can only purchase one property and that property must be your principal place of residence, right? One way around this is by purchasing the property jointly with a Chinese citizen or PR.