Bill and Linda Posted May 22, 2008 Report Share Posted May 22, 2008 It appeared that you have been trvelling around looking for houses. Are you a real estate investor? For a $50,000 USD home, how much you put down and how much would be the monthly payment, (PITI) ? Thanks - - Ken88 Right now for new homes the minimum downpayment is 30% I think. If the mortgage is in the expat's name, banks are supposed to be able to finance no more than 50%, but many banks ignore this and allow you to finance as much as a Chinese person could. Interest rates for first time buyers of new homes are approximately 7% minus a 15% discount. Subsequent homes carry a mandatory 25% premium over the base rate of approximately 7%. GZBILL, I have no experience in buying a home (apartment) in China and my Lao Po has two mortgages at this time and says she doesn't want another. Is it possible for me as an expat to get a mortgage at this time? I'm leaning toward a used home, not new, and we will be living in it, not renting out. I don't have any contacts here in Chengdu and her brother is a little hard to communicate with. Thanks! Bill As an expat, it is not possible for you to buy commercial property at all. You can, however, buy residential property -- only one -- but first you must have been living here at least a year on either a student or work-related residence permit. Once you meet that requirement, you may easily obtain a mortgage. On a new property you'll need about 40% cash and on a used property 50%. Fees for obtaining a mortgage are higher with second hand properties as well as the mortgage terms being much shorter. Thanks Bill. I had read the post related to buying a house in China and transfering the money from the US (all 15 pages), but I did not find anything covering mortgages in particular. I will not be obtaining the mortgage by myself, because I am here on the "L" visa (spouse 1-yr), and don't meet the requirement for being here for at least a year. I don't foresee getting the work visa, I'm enjoying taking it easy.... due to all the red tape (pun intended) I don't see starting a tutoring business as hoped. Under these circumstances, will a bank consider a mortgage if my wife and I are both on the note at this time? Will I still need the work visa and one-year residency? To complicate matters more, she no longer works, so she has no income, and my income is my SSA monthly benefit. Does the bank consider assets such as other properties when granting the loan? What is your opinion? The only reason I want a bank mortgage at all is so we will be assured of a proper title. It may be as little as 10%. And although Chengdu was spared large-scale damage from the quake, we are now considering another locale..... my wife has been petrified since the 12th. Thanks in advance Bill Link to comment
avg99 Posted May 22, 2008 Report Share Posted May 22, 2008 I like Weihai....I heard Qingdao is nice too Link to comment
rogerluli Posted May 22, 2008 Report Share Posted May 22, 2008 I like Weihai....I heard Qingdao is nice too We looked at Weihai extensivley also and it is very nice but the winter is a bit chilly for my taste...And Qingdao is a fine choice also but more pricey... Link to comment
avg99 Posted May 22, 2008 Report Share Posted May 22, 2008 Yes weather in Weihai can be very cold during the winter. Link to comment
ken88 Posted May 22, 2008 Author Report Share Posted May 22, 2008 I like Weihai....I heard Qingdao is nice too Where is wihai? Ken88 Link to comment
xiaofeizhu Posted May 23, 2008 Report Share Posted May 23, 2008 Well, I guess no one really mentions the north! LOL. I want to check out Urumqi like someone said, but not live there. My husband and I want to buy a home in Beijing because it's the most convenient. We'd like to keep our ties to Inner Mongolia, too. The town we now live in is on the outskirts of a city called Tongliao. Not much. The only "American" food they have here is KFC LOL. We are thinking of buying a home in the Inner Mongolian capital of Hohhot since they do have a bunch of actual American/European food and people and what not. Inner Mongolia is cold in the winter (duh) and gets pretty hot in the summer, but I guess since we will be living in Hawaii most of the time, it's a good change. But we are still focusing on first buying a house in Beijing, before Inner Mongolia since it's pretty central for the places we intend to go and since most flights from Hawaii fly into Beijing. I guess it's really just what you like, what suits you, if you involve family, etc. My husband's married older sister plans to go to Dalian or Qingdao, and my husband's unmarried older sister plans to go to Beijing or Hohhot. So for us, being more in the north just works out better. Link to comment
avg99 Posted May 23, 2008 Report Share Posted May 23, 2008 (edited) I like Weihai....I heard Qingdao is nice too Where is wihai? Ken88Shandong province......on the coast/finger......korea is directly east.....also on north side of the finger from Qingdao.. Edited May 23, 2008 by avg99 (see edit history) Link to comment
chilton747 Posted June 2, 2008 Report Share Posted June 2, 2008 It appeared that you have been trvelling around looking for houses. Are you a real estate investor? For a $50,000 USD home, how much you put down and how much would be the monthly payment, (PITI) ? Thanks - - Ken88 Right now for new homes the minimum downpayment is 30% I think. If the mortgage is in the expat's name, banks are supposed to be able to finance no more than 50%, but many banks ignore this and allow you to finance as much as a Chinese person could. Interest rates for first time buyers of new homes are approximately 7% minus a 15% discount. Subsequent homes carry a mandatory 25% premium over the base rate of approximately 7%. GZBILL, I have no experience in buying a home (apartment) in China and my Lao Po has two mortgages at this time and says she doesn't want another. Is it possible for me as an expat to get a mortgage at this time? I'm leaning toward a used home, not new, and we will be living in it, not renting out. I don't have any contacts here in Chengdu and her brother is a little hard to communicate with. Thanks! Bill As an expat, it is not possible for you to buy commercial property at all. You can, however, buy residential property -- only one -- but first you must have been living here at least a year on either a student or work-related residence permit. Once you meet that requirement, you may easily obtain a mortgage. On a new property you'll need about 40% cash and on a used property 50%. Fees for obtaining a mortgage are higher with second hand properties as well as the mortgage terms being much shorter. A few ways around the ownership issues if you have the contacts. One way is to use a local company to own the property, or a local family member. Than you have a contract with them on the ownership and the use of the land. The mortgage is harder to work around. Since almost all of us have wives who are PRCC it's even easier...Just put it in her name... Remember every house you buy in your wife's name = 10 years of wedded bliss... Eunice said so... B) Wedded bliss for you or for her? Link to comment
ken88 Posted June 2, 2008 Author Report Share Posted June 2, 2008 It appeared that you have been trvelling around looking for houses. Are you a real estate investor? For a $50,000 USD home, how much you put down and how much would be the monthly payment, (PITI) ? Thanks - - Ken88 Right now for new homes the minimum downpayment is 30% I think. If the mortgage is in the expat's name, banks are supposed to be able to finance no more than 50%, but many banks ignore this and allow you to finance as much as a Chinese person could. Interest rates for first time buyers of new homes are approximately 7% minus a 15% discount. Subsequent homes carry a mandatory 25% premium over the base rate of approximately 7%. GZBILL, I have no experience in buying a home (apartment) in China and my Lao Po has two mortgages at this time and says she doesn't want another. Is it possible for me as an expat to get a mortgage at this time? I'm leaning toward a used home, not new, and we will be living in it, not renting out. I don't have any contacts here in Chengdu and her brother is a little hard to communicate with. Thanks! Bill As an expat, it is not possible for you to buy commercial property at all. You can, however, buy residential property -- only one -- but first you must have been living here at least a year on either a student or work-related residence permit. Once you meet that requirement, you may easily obtain a mortgage. On a new property you'll need about 40% cash and on a used property 50%. Fees for obtaining a mortgage are higher with second hand properties as well as the mortgage terms being much shorter. A few ways around the ownership issues if you have the contacts. One way is to use a local company to own the property, or a local family member. Than you have a contract with them on the ownership and the use of the land. The mortgage is harder to work around. Since almost all of us have wives who are PRCC it's even easier...Just put it in her name... Remember every house you buy in your wife's name = 10 years of wedded bliss... Eunice said so... B) Wedded bliss for you or for her? Bliss for her for ever; and you might lose your shirt! Link to comment
GZBILL Posted June 2, 2008 Report Share Posted June 2, 2008 It appeared that you have been trvelling around looking for houses. Are you a real estate investor? For a $50,000 USD home, how much you put down and how much would be the monthly payment, (PITI) ? Thanks - - Ken88 Right now for new homes the minimum downpayment is 30% I think. If the mortgage is in the expat's name, banks are supposed to be able to finance no more than 50%, but many banks ignore this and allow you to finance as much as a Chinese person could. Interest rates for first time buyers of new homes are approximately 7% minus a 15% discount. Subsequent homes carry a mandatory 25% premium over the base rate of approximately 7%. GZBILL, I have no experience in buying a home (apartment) in China and my Lao Po has two mortgages at this time and says she doesn't want another. Is it possible for me as an expat to get a mortgage at this time? I'm leaning toward a used home, not new, and we will be living in it, not renting out. I don't have any contacts here in Chengdu and her brother is a little hard to communicate with. Thanks! Bill As an expat, it is not possible for you to buy commercial property at all. You can, however, buy residential property -- only one -- but first you must have been living here at least a year on either a student or work-related residence permit. Once you meet that requirement, you may easily obtain a mortgage. On a new property you'll need about 40% cash and on a used property 50%. Fees for obtaining a mortgage are higher with second hand properties as well as the mortgage terms being much shorter. A few ways around the ownership issues if you have the contacts. One way is to use a local company to own the property, or a local family member. Than you have a contract with them on the ownership and the use of the land. The mortgage is harder to work around. Since almost all of us have wives who are PRCC it's even easier...Just put it in her name... Remember every house you buy in your wife's name = 10 years of wedded bliss... Eunice said so... B) Wedded bliss for you or for her? The idea of using a local company is, frankly speaking, one of the most foolish suggestions ever. Not only will there be issues with obtainng a mortgage, but you will never own the property and will be at the mercy of the company which does. Any potential problems the company may have (legal or civil) will be passed down through the assets of the company and you could very easily find yourself on the street. Very easily. Also, there is the issue of taxation. You will need to budget an additional 30% for taxes. 5% would be for the issuance of the tax receipt that companies must obtain when renting property and an additional 20 - 25% will be the corporate income tax on the rental income. Now, should the company not bother with the taxation issues -- as many do -- when the tax bureau finds out you not only loose the property but are liable for back taxes and an extremely stiff penalty -- plus interest. The best bet is to put the house in your spouse's name if you are not elegible to buy property yourself. Link to comment
GZBILL Posted June 2, 2008 Report Share Posted June 2, 2008 It appeared that you have been trvelling around looking for houses. Are you a real estate investor? For a $50,000 USD home, how much you put down and how much would be the monthly payment, (PITI) ? Thanks - - Ken88 Right now for new homes the minimum downpayment is 30% I think. If the mortgage is in the expat's name, banks are supposed to be able to finance no more than 50%, but many banks ignore this and allow you to finance as much as a Chinese person could. Interest rates for first time buyers of new homes are approximately 7% minus a 15% discount. Subsequent homes carry a mandatory 25% premium over the base rate of approximately 7%. GZBILL, I have no experience in buying a home (apartment) in China and my Lao Po has two mortgages at this time and says she doesn't want another. Is it possible for me as an expat to get a mortgage at this time? I'm leaning toward a used home, not new, and we will be living in it, not renting out. I don't have any contacts here in Chengdu and her brother is a little hard to communicate with. Thanks! Bill As an expat, it is not possible for you to buy commercial property at all. You can, however, buy residential property -- only one -- but first you must have been living here at least a year on either a student or work-related residence permit. Once you meet that requirement, you may easily obtain a mortgage. On a new property you'll need about 40% cash and on a used property 50%. Fees for obtaining a mortgage are higher with second hand properties as well as the mortgage terms being much shorter. Thanks Bill. I had read the post related to buying a house in China and transfering the money from the US (all 15 pages), but I did not find anything covering mortgages in particular. I will not be obtaining the mortgage by myself, because I am here on the "L" visa (spouse 1-yr), and don't meet the requirement for being here for at least a year. I don't foresee getting the work visa, I'm enjoying taking it easy.... due to all the red tape (pun intended) I don't see starting a tutoring business as hoped. Under these circumstances, will a bank consider a mortgage if my wife and I are both on the note at this time? Will I still need the work visa and one-year residency? To complicate matters more, she no longer works, so she has no income, and my income is my SSA monthly benefit. Does the bank consider assets such as other properties when granting the loan? What is your opinion? The only reason I want a bank mortgage at all is so we will be assured of a proper title. It may be as little as 10%. And although Chengdu was spared large-scale damage from the quake, we are now considering another locale..... my wife has been petrified since the 12th. Avoiding real estate in or around Chengdu is a wise move. Property values there are practically zero now. Even those buildings that appear untouched may have severe structural issues now. If your spouse, a PRC citizen, is a co-purchaser, you'll have no problems. You will still have your name on the title and on the mortgage documents, but the mortgage will be reported only to your wife's credit file and not yours. This is because the bank can only report the mortgage to the People's Bank credit reporting system under one name. No big deal. Obtaining the mortgage will be relatively easy. They will want to see a certain amount of income depending on themortgage amount. The bank's lawyer will tell you exactly how much you need to document. Your income will be considered as well as any income your wife has. If, for example, you need to document $1000 per month in income and you have $500, you're spouse will need to document $500. Again, obtaining the mortgage is really easy -- nothing like in the US. Choose a bank that is easy to deal with -- such as ICBC. Avoid Bank of China and China Construction Bank like the plague. Link to comment
chilton747 Posted June 2, 2008 Report Share Posted June 2, 2008 It appeared that you have been trvelling around looking for houses. Are you a real estate investor? For a $50,000 USD home, how much you put down and how much would be the monthly payment, (PITI) ? Thanks - - Ken88 Right now for new homes the minimum downpayment is 30% I think. If the mortgage is in the expat's name, banks are supposed to be able to finance no more than 50%, but many banks ignore this and allow you to finance as much as a Chinese person could. Interest rates for first time buyers of new homes are approximately 7% minus a 15% discount. Subsequent homes carry a mandatory 25% premium over the base rate of approximately 7%. GZBILL, I have no experience in buying a home (apartment) in China and my Lao Po has two mortgages at this time and says she doesn't want another. Is it possible for me as an expat to get a mortgage at this time? I'm leaning toward a used home, not new, and we will be living in it, not renting out. I don't have any contacts here in Chengdu and her brother is a little hard to communicate with. Thanks! Bill As an expat, it is not possible for you to buy commercial property at all. You can, however, buy residential property -- only one -- but first you must have been living here at least a year on either a student or work-related residence permit. Once you meet that requirement, you may easily obtain a mortgage. On a new property you'll need about 40% cash and on a used property 50%. Fees for obtaining a mortgage are higher with second hand properties as well as the mortgage terms being much shorter. Thanks Bill. I had read the post related to buying a house in China and transfering the money from the US (all 15 pages), but I did not find anything covering mortgages in particular. I will not be obtaining the mortgage by myself, because I am here on the "L" visa (spouse 1-yr), and don't meet the requirement for being here for at least a year. I don't foresee getting the work visa, I'm enjoying taking it easy.... due to all the red tape (pun intended) I don't see starting a tutoring business as hoped. Under these circumstances, will a bank consider a mortgage if my wife and I are both on the note at this time? Will I still need the work visa and one-year residency? To complicate matters more, she no longer works, so she has no income, and my income is my SSA monthly benefit. Does the bank consider assets such as other properties when granting the loan? What is your opinion? The only reason I want a bank mortgage at all is so we will be assured of a proper title. It may be as little as 10%. And although Chengdu was spared large-scale damage from the quake, we are now considering another locale..... my wife has been petrified since the 12th. Avoiding real estate in or around Chengdu is a wise move. Property values there are practically zero now. Even those buildings that appear untouched may have severe structural issues now. If your spouse, a PRC citizen, is a co-purchaser, you'll have no problems. You will still have your name on the title and on the mortgage documents, but the mortgage will be reported only to your wife's credit file and not yours. This is because the bank can only report the mortgage to the People's Bank credit reporting system under one name. No big deal. Obtaining the mortgage will be relatively easy. They will want to see a certain amount of income depending on themortgage amount. The bank's lawyer will tell you exactly how much you need to document. Your income will be considered as well as any income your wife has. If, for example, you need to document $1000 per month in income and you have $500, you're spouse will need to document $500. Again, obtaining the mortgage is really easy -- nothing like in the US. Choose a bank that is easy to deal with -- such as ICBC. Avoid Bank of China and China Construction Bank like the plague. Essentially this is exactly the way it worked for me. The ICBC bank was very easy as GZBILL said it was. A letter of employment stating the employer's name and monthly salary was all that was needed. Link to comment
GZBILL Posted June 2, 2008 Report Share Posted June 2, 2008 It appeared that you have been trvelling around looking for houses. Are you a real estate investor? For a $50,000 USD home, how much you put down and how much would be the monthly payment, (PITI) ? Thanks - - Ken88 Right now for new homes the minimum downpayment is 30% I think. If the mortgage is in the expat's name, banks are supposed to be able to finance no more than 50%, but many banks ignore this and allow you to finance as much as a Chinese person could. Interest rates for first time buyers of new homes are approximately 7% minus a 15% discount. Subsequent homes carry a mandatory 25% premium over the base rate of approximately 7%. GZBILL, I have no experience in buying a home (apartment) in China and my Lao Po has two mortgages at this time and says she doesn't want another. Is it possible for me as an expat to get a mortgage at this time? I'm leaning toward a used home, not new, and we will be living in it, not renting out. I don't have any contacts here in Chengdu and her brother is a little hard to communicate with. Thanks! Bill As an expat, it is not possible for you to buy commercial property at all. You can, however, buy residential property -- only one -- but first you must have been living here at least a year on either a student or work-related residence permit. Once you meet that requirement, you may easily obtain a mortgage. On a new property you'll need about 40% cash and on a used property 50%. Fees for obtaining a mortgage are higher with second hand properties as well as the mortgage terms being much shorter. Thanks Bill. I had read the post related to buying a house in China and transfering the money from the US (all 15 pages), but I did not find anything covering mortgages in particular. I will not be obtaining the mortgage by myself, because I am here on the "L" visa (spouse 1-yr), and don't meet the requirement for being here for at least a year. I don't foresee getting the work visa, I'm enjoying taking it easy.... due to all the red tape (pun intended) I don't see starting a tutoring business as hoped. Under these circumstances, will a bank consider a mortgage if my wife and I are both on the note at this time? Will I still need the work visa and one-year residency? To complicate matters more, she no longer works, so she has no income, and my income is my SSA monthly benefit. Does the bank consider assets such as other properties when granting the loan? What is your opinion? The only reason I want a bank mortgage at all is so we will be assured of a proper title. It may be as little as 10%. And although Chengdu was spared large-scale damage from the quake, we are now considering another locale..... my wife has been petrified since the 12th. Avoiding real estate in or around Chengdu is a wise move. Property values there are practically zero now. Even those buildings that appear untouched may have severe structural issues now. If your spouse, a PRC citizen, is a co-purchaser, you'll have no problems. You will still have your name on the title and on the mortgage documents, but the mortgage will be reported only to your wife's credit file and not yours. This is because the bank can only report the mortgage to the People's Bank credit reporting system under one name. No big deal. Obtaining the mortgage will be relatively easy. They will want to see a certain amount of income depending on themortgage amount. The bank's lawyer will tell you exactly how much you need to document. Your income will be considered as well as any income your wife has. If, for example, you need to document $1000 per month in income and you have $500, you're spouse will need to document $500. Again, obtaining the mortgage is really easy -- nothing like in the US. Choose a bank that is easy to deal with -- such as ICBC. Avoid Bank of China and China Construction Bank like the plague. Essentially this is exactly the way it worked for me. The ICBC bank was very easy as GZBILL said it was. A letter of employment stating the employer's name and monthly salary was all that was needed. Another plus with ICBC is that they don't make you jump through moronic hoops in the mortgage process. BOC, for example, wants you to go back to the US and get your passport legalized by the Chinese embassy there. You need to be careful which bank you deal with, too, because each has different prepayment policies. Not sure about all others, but I like to pay my mortgages down as early as possible. CCB and BOC have very unfavorable prepayment policies. ICBC does not. Link to comment
canrun Posted June 4, 2008 Report Share Posted June 4, 2008 No doubt...Zhuhai, Guangdong! Link to comment
ken88 Posted July 6, 2008 Author Report Share Posted July 6, 2008 No doubt...Zhuhai, Guangdong! Hello: Zuhai is one of the places that interested me the most. I like to know a little bit more about it. Were you travelling? Is your wife/gf from there? I heard it is a beautiful tourist town. Is it expensive? How much would the rent for a 1 and 2 br apartment be? How would you compare it with the nearby city, Zhongshou (sp?), and GUZ itself? Thanks. . . . Ken88 Link to comment
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