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bearcanada
Joined: 04 Sep 2005
Posts: 312
Location: Calgary, Canada
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 Posted: Sat Feb 02, 2008 11:11 am Post subject: Finding an Apartment |
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Several people have inquired about locating an English-speaking real estate agent for finding an apartment in various cities.
Certainly it's possible in many locations to find a competent real estate agent who has very good English, but your options may expand if you just use a Chinese agent and have a friend or student translate for you. Pretty girls always preferred.
It is important that you understand all the discussion about renting a flat because often the realtor won't tell you many things you would like to know. In Shanghai a realtor is paid equally by the landlord and tenant (50% each), but the emphasis is often on earning the commission rather than protecting your interests.
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Voldermort
Joined: 14 Apr 2004
Posts: 597
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| Posted: Sat Feb 02, 2008 4:43 pm Post subject: |
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| The finding, negotiating, viewing of and comparison of an apartment here is not really a problem for me. I have often thought about buying an apartment rather than wasting money on rent ( I much prefer to waste money on booze ), but have no idea as to how. Back home, getting a mortgage was as simple as telling the bank the address of the property and which estate agent was handling it. How does a poor old FT go about securing a mortgage here? What are the restrictions, deposit, interest rates etc...? |
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Joe C.
Joined: 08 May 2003
Posts: 993
Location: Witness Protection Program
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| Posted: Mon Feb 04, 2008 1:22 am Post subject: |
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| Voldermort wrote: |
| I have often thought about buying an apartment rather than wasting money on rent ( I much prefer to waste money on booze ), but have no idea as to how. Back home, getting a mortgage was as simple as telling the bank the address of the property and which estate agent was handling it. How does a poor old FT go about securing a mortgage here? What are the restrictions, deposit, interest rates etc...? |
Before you can purchase a house here you need to have already been here one year on a work or study-related residence permit.
Once that is out of the way, you look around for a place that you are willing to buy and sign a purchase offer with approximately 10% down. In Beijing you need to get clearance from the government so that you don't end up buying a place that is too close to one of the government ministries or other sensitive areas, but in other cities you then just go directly to the bank from which you wish to obtain your mortgage and find out what documentation they require.
In many areas each bank is same in regards to obtaining a mortgage. For example, almost all of them offer only adjustable rate mortgages. In other areas, they can be quite different. For example, some make early repayments difficult or expensive and some require additional documents such as verification from your government as to the validity of your passport which must be further authenticated by the Chinese consulate in your country. Sometimes the developer from whom you are purchasing the house will try and force you to use a certain bank.
Once you start collecting the documentation the bank needs, you go back to the developer and put down the rest of the deposit and get an appointment with the developer's attorney to sign the formal purchase contract.
With the purchase contract, receipts and other documentation required by the bank, you make an appointment with the bank's attorney. They will have you sign a ton of forms and then have you wait a couple of weeks. In about two weeks the bank will call you and tell you to come in to open your repayment account and then tell you how much and when your payments begin.
As long as you have income statements from your employer showing your income is sufficient to be able to afford the mortgage payments, they'll approve the mortgage. At some point up to the time you see the bank's lawyer the bank will tell you exactly how much income you need to show.
Currently the interest rate is about 6% I think -- possibly a little less. There's a rule by the People's Bank of China that a foreigner can only obtain a mortgage for no more than 50% of the house value, but many banks don't follow that rule anymore. If it hasn't changed recently, a Chinese person can obtain a mortgage for 60% and you will probably be able to, too. |
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China.Pete
Joined: 27 Apr 2006
Posts: 547
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| Posted: Mon Feb 04, 2008 2:09 am Post subject: Cash and Carry |
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"(J)ust go directly to the bank from which you wish to obtain your mortgage and find out what documentation they require. " -- Joe C.
Or, you can do what many people in China or their parents do and just pay cash.  |
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Voldermort
Joined: 14 Apr 2004
Posts: 597
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| Posted: Mon Feb 04, 2008 3:45 am Post subject: |
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Joe C. thanks for the info.
In my city, an average ( new ) apartment goes for somewhere in the region of 300,000. A 50% down payment on that is really quite steep. Back home it's possible to get a 99% mortgage, though the interest is a little higher, with 90% being the most common for first time buyers. |
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Joe C.
Joined: 08 May 2003
Posts: 993
Location: Witness Protection Program
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| Posted: Mon Feb 04, 2008 4:19 am Post subject: |
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| Voldermort wrote: |
Joe C. thanks for the info.
In my city, an average ( new ) apartment goes for somewhere in the region of 300,000. A 50% down payment on that is really quite steep. Back home it's possible to get a 99% mortgage, though the interest is a little higher, with 90% being the most common for first time buyers. |
Where's home? Certainly not China or the USA.
Since it changes so often, I forget whether in China you can mortgage 50% or 60%. |
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