cgmatson

Does anyone know anything about, or have any experience with buying property in China? I am not sure if there are any particular laws about Americans buying property in China, but I found an apartment that I would love to buy, and was just wondering if anyone had any experience, good or bad, with buying property there...

BillT

Ok let me state the obvious (I know I'll get flack but here goes)

1) Its a communist country
2) Its a long way from where you live now I assume
3) I assume your risk tolerance is high- you like adventure- right?
4) Your prpoerty rights- if you have any- would be somewhat hard to protect if there are after the sale issues.
Given the above I would say- no don't do it.

Neil_Oz

To describe China as "a communist country" (on no better grounds than that its ruling clique continues to call itself the Chinese Communist Party) is to confuse the issue. I see precious little evidence of "communism" in a country that lacks elementary social security and whose workers are exploited by big and small business day in and day out. China seems to operate to the Golden Rule (he who has the gold, rules).

Having said that I think BillT's caution may be warranted. How would you go about navigating the web of bribes and kickbacks that you would surely encounter in dealing with the authorities? Presumably a local agent could take care of this, but how would you find him or her?

Are there any expat discussion boards that might provide you with some clues about property purchase in China?

rkkwan

Many of my relatives have bought properties in southern China (in the region between Guangzhou and Macau; as well as in Shenzhen.) They are all Hong Kong residents, but one of them a US citizen, and another a UK citizen.

I don't think it's too much trouble. Many developers build apartments and townhomes with specific intention to sell to Hong Kongers and other overseas Chinese, and I'm sure there are lawyers (law specialists) that do these things.

Of course they may be complications of various kinds, especially if you're not ethnic Chinese, but I think if you're careful and do your homework, this can be done.

Patty

If you're looking to purchase brand new property that's yet to be built, do research carefully. My parents 'purchased' an apartment in Beijing years ago. Long story short, it was never completed and the process of getting their deposit back took quite some time. The same thing could've happened in the US, but as a non-resident, you're sometimes less aware of what legal rights and protections you have, and when complications arise they can take longer to resolve simply because you're not physically there.

But yes as an American you can purchase property there. At one point, real estate in China was separated into property that could be purchased by foreign nationals and property that could only be purchased by Chinese nationals, but that restriction no longer applies.

As others have mentioned, do you homework carefully. BTW how did you find this particular apartment that you're interested in?

Bchen

When you buy property in China, you never own the land. You just get the "right to use the land" for 70 years, or comparable. If you buy second hand, you only get the remainder of that land use right. At any given time, the gov't can sieze the land (and hence your property)citing national matters superceding your rights (like needing to pave a 5 lane highway through your condo.

Laws exist, for better or worse, and you are best to check out:
Beijing home buyers Guide 2005 (ISBN 7-5085-0726-6). Just put out this or last month, by the publishers of thats beijing (www.thatsbj.com)

cgmatson

My situation is as follows: I have been living in Hangzhou, China for the past seven months studying chinese and working. I am planning on coming back to the US at the end of July, but definitely want to come back to live here again some time in the future. At this point, I am pretty much fluent in the language, which is how I heard about this place. I came upon this apartment because it is part of a new development area that is just now being built up. The apartment is gorgeous, has never been lived in, and according to the real estate agent, very easy to rent out if I am not living there because it is new and in such a desirable location. I of course understand that being in a communist country would make this sale much more difficult than buying property in the US, but I feel that it is a good invest on many levels, firstly because I could live there at any time in the future, secondly because the property is very desirable, and would be easy to rent out because it is in a nice, safe, gated community, and thirdly because I am sure that the value of the property will increase significantly in the next few years...I am just not sure what problems I should be prepared to run into, and where I should be careful. For example are property prices at all negotiable? What should I look out for in the way of real estate agencies, and where they make their money in property sale?

BillT

Ok a few more points/questions
1) Have you been a landlord in the past- if so then you know the pitfalls, if not then plan for the worst and you will be ready should it happen.
2) You would be well advised to deal with a property managment firm there if such services exist- they take all the hassle out of rental situations.
3) Be prepared to pay for the apartment if you can't rent it- that way if you do rent its fine.