Comments on: Buying a House in 13 Steps

By: Catshanghai » Long Time No Blog

Catshanghai » Long Time No Blog — Sat, 25 Apr 2009 09:16:21 +0000

[...] I lack focus and passion for blog posts. Is the blog for me or other people? The posts I have written with the most impact have given useful information based on things I have seen or experienced such as my post on buying a house. [...]

By: Estela

Estela — Sun, 23 Mar 2008 02:37:05 +0000

Thanks for this great list (linked via Mad About Shanghai)! We may be relocating from San Francisco to Shanghai by this Summer. Excited & terrified at the same time. Do you know of or can recommend a reputable international moving company?

By: werdna

werdna — Tue, 18 Mar 2008 04:29:01 +0000

For those who pay tax in US, if you use mortgage to pay for your apartment, you can deduct the interest portion from your tax return – just as if it were an apartment in US. The same is true even if you rent the apartment out.

To confirm with IRS: IRS International Tax Law hotline. The number is area code (215) 516–2000

http://www.taxalmanac.org/index.php/Discussion:Foreign_Rental_Income

By: Alex

Alex — Thu, 07 Feb 2008 07:20:00 +0000

I had a guy remodel my apartment about three years ago. He did an excellent job and was very honest. I did not use a designer and bought everything myself with him. If he’s still in town I’d recommend him 1 (366) 166-5838. Tell him 龙先生 sent you. He does not speak English.

Another tip, I got a mortgage in US Dollar, which was one of the best things I did, as I made 15% on the currency change and my payments keep getting smaller in RMB terms. That was through Standard Chartered Bank and was much easier than dealing with BofC.

By: catshanghai

catshanghai — Sun, 03 Feb 2008 11:09:44 +0000

Hi Sal.

Our transaction costs were 2.5 percent of the 1.3 million RMB purchase price. Realtors charge 1 percent and the tax is 1.5 percent. I don’t know if this waived on new builds. Check with your realtor who will handle all your conveyancing. Make sure you check them out by getting 3rd party testimonials and checkibg their credentials. Take a trusted Chinese friend or family member to grill them mercilessly.

I don’t know too much about the difference between villas and appartments except you get more area for your money outside the city centre. I work in Kangqiao where villas were going for 6000 to 8000 RMB per square metre whereas our house cost us 12000 RMB per square metre. This information is out of date. Prices have gone up, but that may not persist if the stock market nosedives.

I am not an economist or speculator, but my view is that properties are bound to increase their long term value in the city centre as long as incomes rise and development continues unabated. We live near Nanpu Bridge, which is near a new metro line and the Expo site. There does seem to be an over abundant supply of empty villas and appartments around the edge of the city. How can these go up in value if there is no demand for them? The paradox is that new, virgin properties keep their value until they are lived in. That’s why Thames Town in Songjiang was still a ghost town 18 months ago. People bought empty properties as investments without living in them.

You might still be able to find bargains near Suzhou and Huangpu River at under 20000 RMB per square metre. These places are both near downtown, but they have been cheaper than other inner city districts that are on the market for well over 20000 RMB per square metre. My information may be out of date, because we completed our transacation last July.

Also, factor in renovation costs. They are significantly cheaper than in Europe. Our building team was OK, but they rushed it at the end and the build quality could have been better. I would hire an independent foreman to keep the working team on a short leash so they finish without cutting corners.

Good luck with the process.

By: Sal Octavia

Sal Octavia — Fri, 01 Feb 2008 13:43:19 +0000

Hi! Great to know about the process of buying house in Shanghai. I have been in Shanghai, Pudong for 2 years. Renting an apartment stone throw away to the financial hub “Lui Jia Zui” Pearl Tower. Lease just expired and considering to buy a property in Shanghai for stay and for investment purposes. Few questions that need your assistance : 1 ) What about buying new apartment that are still in midst of construction by developers? Will the process be the same as second hand apartment? Agent fees?
2) Is “Villa” a better option of investment in Shanghai compare to “Apartment” in the long term, say 5-10 years time? How about “Villa” in the outer ring / outskirt of Shanghai as it is cheaper and may reap better yields with more room for growth in future?
3) Name the few good quality property developlers in Shanghai besides “Tomson”, “Yanlord”,”Captialand” that will be good consideration?
4) Is it true that apartment facing the “Huangpu River” or “Suzhou River” will be better option of purchase compare to those neighbourhood apartments. What I mean is will it be easier to sell off in future?

By: Catshanghai » Looking Back On 2007

Catshanghai » Looking Back On 2007 — Mon, 31 Dec 2007 11:31:17 +0000

[...] Posts Buying a House In 13 Steps State of the [...]

By: Buying an Apartment in Shanghai

Buying an Apartment in Shanghai — Wed, 22 Aug 2007 02:58:05 +0000

[...] We’re about to buy an apartment and originally I planned to write down the process. Catshanghai has done already an excellent job in describing the process. [...]

By: Kiwi Buyer

Kiwi Buyer — Wed, 01 Aug 2007 10:55:43 +0000

Hi – what happens if you want to sell the property before the 5 years is up? Can you sell it and repay the mortgage earlier and if so do you pay any penalties?
What were the total costs outside of the 6000RMB (Sales tax, agent fees etc. We’re thinking of buying in China and I wanted to get some idea of the total costs. The info you have given is really useful. Thanks

By: notary public

notary public — Wed, 25 Jul 2007 17:13:58 +0000

Shanghai is a very beautiful place and you’ve just given me an idea that is really tempting…buy a house and eventually live in a beautiful country like China, particularly in Shanghai!! Thanks for sharing the requirements on how this can be possible. Keep on posting!