Buying a house and how to keep it

[spacebar]

As my fiancee is ready to pack up and move to the good old USA, she will be leaving her job as a teacher and her condo she lives in. Although she has not decided to sell the home, she has rather opted to keep it and rent it but I would prefer to continue paying for it seeing that she only pays $70-90 a month for her mortgage.

During this entire visa process she has often told me how cheap the property value of China homes is rising and the cost of living is rising. As a teacher, she has the opportunity to buy another home from her school as long as she lives in China for six years but it's not a guarantee she can keep it. She had told me all we would have to do is pay a down payment of 70,000 yuan which is roughly $10,000and then the rest. The only problem is that I don't have that now. I know maybe some people may think I must be crazy because I'm taking a gamble to help her buy a home and risk her running off and I losing all that money. But the fact of the matter is since we will be leaving in USA, she has told me we cannot do both , she means we cannot buy the house and live in USA. It's one or the other. Of course I am aware of this, but if the cost of living in China is rising and if that condo rises in value later on in a few years, we can sell it later and make a lot of money.

Of course, it's not that easy since there are rules one must abide by based on the policys of the government of the good old PRC and the school's policy on keeping a home. Now, I am not familiar one bit on these rules but basically, she has told me if we live in China for six years we can keep the home and later sell it. Does anyone have a lao po who is currently in the same situation. We both really would like to keep this property and buy it together but does anyone know whether this is true or is there another way ??? What does everyone think?

Edited November 18, 2007 by spacebar (see edit history)

[jim_julian]

Bringing a new bride to America plus all the other things you have going on in your life ... why add the extra stress of real estate deals in China where your knowledge is is less than perfect.

 

I would not do it. Too much risk. Too many unknowns.

[spacebar]

Sigh, you sure are right about that. Although it would be nice to invest in the property and later find out that the property value has risen. As I've seen in other posts regarding inflation in China, it seems that homes in China are becoming demanding and who knows how soon China will cease to be considered a second or third world country and be considered a First world country.

 

Bringing a new bride to America plus all the other things you have going on in your life ... why add the extra stress of real estate deals in China where your knowledge is is less than perfect.

 

I would not do it. Too much risk. Too many unknowns.

[GZBILL]

As my fiancee is ready to pack up and move to the good old USA, she will be leaving her job as a teacher and her condo she lives in. Although she has not decided to sell the home, she has rather opted to keep it and rent it but I would prefer to continue paying for it seeing that she only pays $70-90 a month for her mortgage.

During this entire visa process she has often told me how cheap the property value of China homes is rising and the cost of living is rising. As a teacher, she has the opportunity to buy another home from her school as long as she lives in China for six years but it's not a guarantee she can keep it. She had told me all we would have to do is pay a down payment of 70,000 yuan which is roughly $10,000and then the rest. The only problem is that I don't have that now. I know maybe some people may think I must be crazy because I'm taking a gamble to help her buy a home and risk her running off and I losing all that money. But the fact of the matter is since we will be leaving in USA, she has told me we cannot do both , she means we cannot buy the house and live in USA. It's one or the other. Of course I am aware of this, but if the cost of living in China is rising and if that condo rises in value later on in a few years, we can sell it later and make a lot of money.

Of course, it's not that easy since there are rules one must abide by based on the policys of the government of the good old PRC and the school's policy on keeping a home. Now, I am not familiar one bit on these rules but basically, she has told me if we live in China for six years we can keep the home and later sell it. Does anyone have a lao po who is currently in the same situation. We both really would like to keep this property and buy it together but does anyone know whether this is true or is there another way ??? What does everyone think?

 

Keeping the original house is probably a wise move, but buying a new unit may not be at all wise.

 

First of all, there's the issue Jim raised. If you do buy a home, make sure you buy it together and your name appears on the deed. Given that housing bought through a state-owned company (i.e. school) often does not carry an official deed (title) and, even if it does it may take six years -- or more -- to obtain it, well ... a word to the wise.

 

Second, property prices are starting to fall in Shanghai and Shenzhen. Since the government is feeling pressure to control the affordability of housing, expect this drop to continue. Generally other major cities will follow suit and then it will reach secondary locations.

 

Third, housing made available to teachers and other government employees sedlom has resale values equal to those units available to the general public and are not considered "investment grade."

[spacebar]

Thanks so much GZBILL, I appreciate the feedback. It helps shed some light and I had no idea that prices in Shanghai and Shenzhen are falling. I was under the impression that property value was rising. Well anyhow, you make a strong point and who knows whether we will actually buy it. We have both talked about it. I would mainly like to keep it not only for the property but in case we were to want to live in China and retire there and then rent another property to other people so we can live very modestly in China I guess my lao po and I will probably have to scratch that idea out since she also wants for us to buy property here in Chicago. I guess we will opt for now not to buy any property at all and keep her current condo and buy a home here in Chicago.

 

Thanks everyone

\

 

errr. I just noticed post # 100

 

yay ^o^!

 

 

As my fiancee is ready to pack up and move to the good old USA, she will be leaving her job as a teacher and her condo she lives in. Although she has not decided to sell the home, she has rather opted to keep it and rent it but I would prefer to continue paying for it seeing that she only pays $70-90 a month for her mortgage.

During this entire visa process she has often told me how cheap the property value of China homes is rising and the cost of living is rising. As a teacher, she has the opportunity to buy another home from her school as long as she lives in China for six years but it's not a guarantee she can keep it. She had told me all we would have to do is pay a down payment of 70,000 yuan which is roughly $10,000and then the rest. The only problem is that I don't have that now. I know maybe some people may think I must be crazy because I'm taking a gamble to help her buy a home and risk her running off and I losing all that money. But the fact of the matter is since we will be leaving in USA, she has told me we cannot do both , she means we cannot buy the house and live in USA. It's one or the other. Of course I am aware of this, but if the cost of living in China is rising and if that condo rises in value later on in a few years, we can sell it later and make a lot of money.

Of course, it's not that easy since there are rules one must abide by based on the policys of the government of the good old PRC and the school's policy on keeping a home. Now, I am not familiar one bit on these rules but basically, she has told me if we live in China for six years we can keep the home and later sell it. Does anyone have a lao po who is currently in the same situation. We both really would like to keep this property and buy it together but does anyone know whether this is true or is there another way ??? What does everyone think?

 

Keeping the original house is probably a wise move, but buying a new unit may not be at all wise.

 

First of all, there's the issue Jim raised. If you do buy a home, make sure you buy it together and your name appears on the deed. Given that housing bought through a state-owned company (i.e. school) often does not carry an official deed (title) and, even if it does it may take six years -- or more -- to obtain it, well ... a word to the wise.

 

Second, property prices are starting to fall in Shanghai and Shenzhen. Since the government is feeling pressure to control the affordability of housing, expect this drop to continue. Generally other major cities will follow suit and then it will reach secondary locations.

 

Third, housing made available to teachers and other government employees sedlom has resale values equal to those units available to the general public and are not considered "investment grade."

Edited November 18, 2007 by spacebar (see edit history)

[spacebar]

Thanks Toplaw, I'll definitely take his advice and make good use of it.

 

Bringing a new bride to America plus all the other things you have going on in your life ... why add the extra stress of real estate deals in China where your knowledge is is less than perfect.

 

I would not do it. Too much risk. Too many unknowns.

 

 

At the risk of being labeled an old timer like Jim (just kidding Jim ), I agree completely. He has given you wise advice IMHO.

[Don]

As my fiancee is ready to pack up and move to the good old USA, she will be leaving her job as a teacher and her condo she lives in. Although she has not decided to sell the home, she has rather opted to keep it and rent it but I would prefer to continue paying for it seeing that she only pays $70-90 a month for her mortgage.

During this entire visa process she has often told me how cheap the property value of China homes is rising and the cost of living is rising. As a teacher, she has the opportunity to buy another home from her school as long as she lives in China for six years but it's not a guarantee she can keep it. She had told me all we would have to do is pay a down payment of 70,000 yuan which is roughly $10,000and then the rest. The only problem is that I don't have that now. I know maybe some people may think I must be crazy because I'm taking a gamble to help her buy a home and risk her running off and I losing all that money. But the fact of the matter is since we will be leaving in USA, she has told me we cannot do both , she means we cannot buy the house and live in USA. It's one or the other. Of course I am aware of this, but if the cost of living in China is rising and if that condo rises in value later on in a few years, we can sell it later and make a lot of money.

Of course, it's not that easy since there are rules one must abide by based on the policys of the government of the good old PRC and the school's policy on keeping a home. Now, I am not familiar one bit on these rules but basically, she has told me if we live in China for six years we can keep the home and later sell it. Does anyone have a lao po who is currently in the same situation. We both really would like to keep this property and buy it together but does anyone know whether this is true or is there another way ??? What does everyone think?

 

Keeping the original house is probably a wise move, but buying a new unit may not be at all wise.

 

First of all, there's the issue Jim raised. If you do buy a home, make sure you buy it together and your name appears on the deed. Given that housing bought through a state-owned company (i.e. school) often does not carry an official deed (title) and, even if it does it may take six years -- or more -- to obtain it, well ... a word to the wise.

 

Second, property prices are starting to fall in Shanghai and Shenzhen. Since the government is feeling pressure to control the affordability of housing, expect this drop to continue. Generally other major cities will follow suit and then it will reach secondary locations.

 

Third, housing made available to teachers and other government employees sedlom has resale values equal to those units available to the general public and are not considered "investment grade."

 

usally these school or company housing compounds are only for employees. They have strict rules, like live in for 6 years. You can only keep the unit if you live there. All of your neighbors will also work for the school and they will know if all of sudden some one else live there PLus, like others said you will not hold all the tittles the school will hold part of it.

[spacebar]

Thanks Don£¡ But it sure would be nice though if we could. Sometimes, the thought of living in China and having an additional home without worrying to pay rent sure sounds luxurious especially since they are being newly built.

 

As my fiancee is ready to pack up and move to the good old USA, she will be leaving her job as a teacher and her condo she lives in. Although she has not decided to sell the home, she has rather opted to keep it and rent it but I would prefer to continue paying for it seeing that she only pays $70-90 a month for her mortgage.

During this entire visa process she has often told me how cheap the property value of China homes is rising and the cost of living is rising. As a teacher, she has the opportunity to buy another home from her school as long as she lives in China for six years but it's not a guarantee she can keep it. She had told me all we would have to do is pay a down payment of 70,000 yuan which is roughly $10,000and then the rest. The only problem is that I don't have that now. I know maybe some people may think I must be crazy because I'm taking a gamble to help her buy a home and risk her running off and I losing all that money. But the fact of the matter is since we will be leaving in USA, she has told me we cannot do both , she means we cannot buy the house and live in USA. It's one or the other. Of course I am aware of this, but if the cost of living in China is rising and if that condo rises in value later on in a few years, we can sell it later and make a lot of money.

Of course, it's not that easy since there are rules one must abide by based on the policys of the government of the good old PRC and the school's policy on keeping a home. Now, I am not familiar one bit on these rules but basically, she has told me if we live in China for six years we can keep the home and later sell it. Does anyone have a lao po who is currently in the same situation. We both really would like to keep this property and buy it together but does anyone know whether this is true or is there another way ??? What does everyone think?

 

Keeping the original house is probably a wise move, but buying a new unit may not be at all wise.

 

First of all, there's the issue Jim raised. If you do buy a home, make sure you buy it together and your name appears on the deed. Given that housing bought through a state-owned company (i.e. school) often does not carry an official deed (title) and, even if it does it may take six years -- or more -- to obtain it, well ... a word to the wise.

 

Second, property prices are starting to fall in Shanghai and Shenzhen. Since the government is feeling pressure to control the affordability of housing, expect this drop to continue. Generally other major cities will follow suit and then it will reach secondary locations.

 

Third, housing made available to teachers and other government employees sedlom has resale values equal to those units available to the general public and are not considered "investment grade."

 

usally these school or company housing compounds are only for employees. They have strict rules, like live in for 6 years. You can only keep the unit if you live there. All of your neighbors will also work for the school and they will know if all of sudden some one else live there PLus, like others said you will not hold all the tittles the school will hold part of it.

[Don]

Thanks Don£¡ But it sure would be nice though if we could. Sometimes, the thought of living in China and having an additional home without worrying to pay rent sure sounds luxurious especially since they are being newly built.

 

 

It is we have two homes, one is like the work housing you are talking about, but right now she has lived there a long time. We expect them to tear her unit down to make room for a tall commerical building. All around her unit they are doing that, when that heppens she will get a new one out futher from the center city. New but not right downtown. They

[carl.hops]

Thanks Don£¡ But it sure would be nice though if we could. Sometimes, the thought of living in China and having an additional home without worrying to pay rent sure sounds luxurious especially since they are being newly built.

 

 

It is we have two homes, one is like the work housing you are talking about, but right now she has lived there a long time. We expect them to tear her unit down to make room for a tall commerical building. All around her unit they are doing that, when that heppens she will get a new one out futher from the center city. New but not right downtown. They

 

I'f you dont mind, are they giving you what the property is worth? I've seen a short documentary of people getting little to nothing for the home, and being evicted with short notice so buildings can be put up to take advantage of the Olympic Games, propaganda yeah, or no? I'm sure your property has nothing to do with the games, but it seems that they can do whatever they want.

[Urkidding]

My take on this would be to keep what invest home your SO has and continue to make your low low payments on it¡­ That way you could also fall back on it like a savings account if you ever need to.

 

I would also look around here in US for investment properties. Depending where you live, there are some really good investment opportunities turning up everywhere. Its unfortunate for some other¡¯s because of recent foreclosures, but it does allows for some good pickings here and there.

 

Real estate market here in Houston is still going pretty strong and if you look around though, you can find some real good deals. I have invested both in real estate and stocks and I must say you are better off in land investment in the long haul¡­

[spacebar]

Good point She sure is looking forward to checking out the properties in Chicago

 

 

My take on this would be to keep what invest home your SO has and continue to make your low low payments on it¡­ That way you could also fall back on it like a savings account if you ever need to.

 

I would also look around here in US for investment properties. Depending where you live, there are some really good investment opportunities turning up everywhere. Its unfortunate for some other¡¯s because of recent foreclosures, but it does allows for some good pickings here and there.

 

Real estate market here in Houston is still going pretty strong and if you look around though, you can find some real good deals. I have invested both in real estate and stocks and I must say you are better off in land investment in the long haul¡­

[Don]

Thanks Don£¡ But it sure would be nice though if we could. Sometimes, the thought of living in China and having an additional home without worrying to pay rent sure sounds luxurious especially since they are being newly built.

 

 

It is we have two homes, one is like the work housing you are talking about, but right now she has lived there a long time. We expect them to tear her unit down to make room for a tall commerical building. All around her unit they are doing that, when that heppens she will get a new one out futher from the center city. New but not right downtown. They

 

I'f you dont mind, are they giving you what the property is worth? I've seen a short documentary of people getting little to nothing for the home, and being evicted with short notice so buildings can be put up to take advantage of the Olympic Games, propaganda yeah, or no? I'm sure your property has nothing to do with the games, but it seems that they can do whatever they want.

 

The way her area does it is they give her a new unit of the same size. So it is worth it. We can pay extra to upgrade to three bedrooms, but it is a low rate to do that. This is partly since it is part of her old department.

[rogerluli]

Is the sky the limit???

 

 

 

 

Mainland real-estate spending skyrockets

 

 

INVESTMENT in the real-estate market on China's mainland jumped 31.4 percent in the first 10 months of this year from 2006 to a mind-blowing 1.92 trillion yuan (US$259 billion), the National Bureau of Statistics reported yesterday.

 

About 1.37 trillion yuan was invested in residential property, rising 33.7 percent from the same period last year.

 

Of this 61.8 billion yuan was pumped into budget homes, up 32.2 percent, the bureau said.

 

Robust investment and demand fueled the real-estate market. The 31.4-percent growth outpaced the 30.3-percent growth in the first nine months and the 29-percent growth through August.

 

The country has issued a string of policies to cool down the real-estate boom, such as tightening credit to developers, increasing supervision over land use and enforcing tax policies.

 

However, it appears the rollercoaster cannot be stopped despite the initiatives by the central government as major cities have all reported rapid growth this year.

 

Last month's average housing price in the mainland's 70 biggest cities jumped 9.5 percent on a yearly basis, compared with September's 8.9-percent growth rate, the National Development and Reform Commission said last week.

 

"Housing prices will keep heading north as the country's annual supply of residences can't follow the annual demand of 700 million square meters," said Jia Zuguo, an analyst at China Merchants Securities.

 

The country had 117.69 million square meters of vacant property by the end of October, dropping 3.9 percent from a year earlier, and vacant residences covered an area of 58 million square meters, down 13.3 percent, the statistics bureau said.

 

A total of 1.65 billion square meters of residences were under construction during the 10 months - rising 24 percent from a year earlier - and developments on 198 million square meters of land were completed, growing 7.9 percent.

 

The real estate climate index grew 2.34 points in October from a year earlier to 105.74, a growth of 0.75 points from September, the bureau said.

 

Average housing prices in Shanghai rose 7.9 percent last month from a year earlier, outpacing September's growth rate by two percentage points.

 

Prices of new homes in the city grew 8.3 percent in October and second-hand home prices rose by 8.9 percent, the NDRC said.

[BuffaloPaul]

I would sell the house. My wife listened to some bad advise on 001 and kept her house "just in case". For the past 2 years this house has been nothing but a worry for her. There is no one to look in on the house and she has no idea if it is vacant or occupied by squatters. She has no idea how to get rid of it now.