Sorry no one has replied before now. That's probably because we're all reluctant to just tell you directly that the best advice anyone can give you is DON'T DO IT. Do not try to buy property here. It will be a nightmare from the moment you start. You will regret it every day, and you will spend a fortune to "buy" (if you can even call it that–you're actually just renting for a really long time) something that is structurally poor, and which can easily be ruined by the actions of neighbors. Then you'll pay constantly escalating taxes for it. You have no guarantee that a totalitarian government won't change all the rules on you next month, next year or ten years from now, in such a way that you will lose everything and get little or nothing in compensation.

If you really want detailed information, I recommend the buying apartment guide on the middlekingdomlife site:

http://middlekingdomlife.com/guide/buying-apartment-in-china.htm

Good luck, and don't do it.

I don't see the issue with buying here, we bought. It's fairly straight forward in all honesty. And the thing about it being "only a lease for 50/70 years" is dishonest. You don't really buy anywhere in the us, you still have to pay property taxes every year.

I love it how in Beijing - the great 'northern capital' - we deal with a snowstorm by having ayi's run around with brooms and garbage cans instead of proper snowplows and the whole world stops. Good times.

That's the question, isn't it? What sane person would rest easy because of any promise the Chinese government makes?

It's rare, but you occasionally see these lease situations in the U.S. too. In my hometown, for example, for some reason all of the lakefront property is sold like normal real estate, but in fact it's a 99-year lease from the city.

That hasn't stopped it from being the most expensive property in town, though, because no one thinks the municipality will simply seize their home when the lease expires. Some of the leases are coming close enough to expiring that the debate about exactly how to handle it has started, but everyone is confident that they'll be treated fairly when the time comes.

Can you have that same confidence in China? Hell no. Especially if you're a foreigner.

I don't see the gov't repossessing homes en masse, but I sure wouldn't put it past them to find excuses to take back the homes of anyone they want to put the screws to.

Agree with everything above, especially with the difference between buying property and paying taxes in the U.S. and buying here.

Good point about eminent domain in the U.S., too, although I spent a few years doing work that had me siding with the "evil" government, and in every case I was involved in, the property owners were treated extremely fairly and generously. The only time we had problems quickly reaching an "everybody's happy" agreement were when a property owner saw the situation as a chance to get rich quick and demanded as much as ten times the market value of the land in question.

And while what will happen when these 70 year leases start expiring is a huge question mark, it really wouldn't be a major factor in my decision to buy or not buy.

I'm scared to death at the idea of buying residential real estate in Beijing today, but for different reasons. I'm jealous of guys like you who bought when prices were still reasonable. If I were in that position, I think I'd be looking to sell at some point within about a two year window and take my profits, but if I planned to live in Beijing for another decade or so I might think differently.

I don't think the ability to only hold on to property for 50 - 70 years was enacted in 1990 because I have seen deeds from long before that that show the property owner only has a fixed time to enjoy the land rights. I have seen anywhere from 50 to about 65 because, as you say, the rights run from the date the property developer obtains usage over the land.

Right now they are just starting out and in the development stage where those in certain cities with multiple properties pay tax, but the stated goal is that all property owners pay property tax. It's just like the capital gains taxes on property sales. Before it didn't exist and then they started with those with multiple properties and not extended it to those who have only one but have not lived in it more than a certain number of years prior to selling it. When the government wants money -- and they inevitably will -- they will turn the screws on those who can supposedly most afford it.

Your understanding of the property tax system in the US is infantile, at best. The idea is that funding for local services come from local residents. That's why property taxes are pretty much determined based on county or school district. If I live in, say, a certain county in LA why should I be paying for schools 75 miles away? If you want to live in an area with crappy schools, then that's a problem you need to discuss with your shrink or your priest and not with me.

Your understanding of "security" is even more absurd -- bordering on laughable. No matter where you live, if you do not have money then life sucks. Yes, in the US you pay property taxes, but also -- with the exception of cities such as NY -- for $800,000 you can buy virtually a mansion. In Beijing you can get a 170 m2 apartment of crappy quality in a crowded area with almost no available parking. And even though you may pay cash for the apartment, things are not as rosy as you pretend if you lose your job. Who pays management fees for you? Electricity? Special assessments when elevators fail? Water? Hot water? Public electricity? Schooling for your kid? If you don't have money saved for those unexpected emergencies in Beijing and you are only earning the city average salary of 5,000 RMB per month, you're life is garbage and the ability to be able to stay in your home -- especially if you have a mortgage -- is minimal.

Hi, can those of you better experienced than I, tell me in the least sarky, agitated way possible how I-a 20something, Chinese-speaking student, can go about buying property in a small area of Jiangsu, not a hotspot but somewhere I can settle down with my Laogong, as I'll be footing most of the money (have about half readily available)I of course want financial security as much as possible should anything untoward happen. I did reside in china on a student visa but still continuing further study in England atm, A new development due to be ready next year has caught my eye...would I be ok to go for it or should I wait until I've lived in china for a few years then look for property-also a bit worried about the proposed inflation of china property prices...Any help would be appreciated as I have so many websites saying so many different things.Rather daunting, Thanks again.

thanks gdbill, the co-purchaser would be a Chinese national, so would signing both our names be ok? the area I want to live still isn't up there with Beijing but it's going through a big revamp with lots of construction and property in nearby areas have already sky-rocketed, hence my prediction of probable price increase, I know there's much to think about and alot of running around to do, but knowing it's possible would at least give me more motivation.

Yes I believe it derives from the Chinese tradition of the Grooms family having to buy the house and many wealthy families worried about their sons attracting golddiggers who plan to run off with money in the divorce, I recently read the law states that instead of the estate being divided by halves like in the UK, it would be awarded to the family who invested the most. Some of the people I've spoke to think England should adopt something like this, haha.

If I just moved back to China but have lived/Studied here for multiple years in the past will that count? Or do I have to wait a full year before trying to make a purchase?

1. Make sure your are eligible. Uninterrupted 1 year on working VISA.
2. Go to the VISA office near Yong-he-gong to get your “I have worked 1 year in China”-certificate. Takes 7 working days. Costs less than 100 from what I remember. You need a bunch of photos but you can take them there. Just bring passport, emplyment contract, and work permit.
3. Now get your passport translated (takes 1-3 days) and costs 300 RMB, This is done at the 公证处, a place Kafkaesque nightmarish place.
4. Find an apartment and a nice real-estate agent
5. Purchase certificate: Give your passport, translated passport, temporary residence card(暂住证), work permit, and employment contract and give it to the real-estate agent, He will apply for a certificate to purchase apartment 资格 something.
6. Make sure you have "30%" of the apartment listing price in cash and extra for the taxes and real-estate fees.
ex. An apartment with list price 2.000.000, ends up costing 2.2M of which you are allowed to borrow around 1.3M
7. Sign a contract with land-lord and pay downpayment (5-10% of price)
8. Now go to the bank and ask for a loan, ask them first what papers you need. Roughly you can lend up to 70% of the total list price, but the cost of the mortgage cant exceed 50% of your income after tax.
9. You probably want to bring money from abroad for cash payment (首府) and tax. You can easily send money from your foreign bank to your local using BIC/IBAN. You bank knows this stuff. This wont give you RMB but you will have USD/HKD/GBP or other approved currency on your Chinese account.
10. Now, since your currency exchange limit is 50.000USD a year you need to go to the "currency office" in Xidan to get an approval to exchange more than that. Ask them in ADVANCE what you need to bring.
11. Now you should have your money, go to the bank with landlord and real estate to pay the cash downpayment. Signature time!
12. Time for 过户, this is when the apartment becomes yours. This is done in a special office for these things. Again your real-estate agent will help you.

FYI: Real-estate fee is paid by purchaser in Beijing!

++++ Disclaimer +++++
Some of the steps above might be in the wrong order. And some agents claim that its different depending on your nationality (which I find hard to believe)

Currently, foreign investors are severely limited in making investments in China’s real estate market. They must possess a Work (Z) Visa valid for 1 year and they are restricted to purchasing ONLY 1 unit of residential property. Similarly, a foreign company must set up a Representative Office in China but even then it is permitted to purchase ONLY commercial properties in the vicinity of their RO. These regulations are very restricting and will block you from truly benefiting from China’s real estate market.

But by registering a Wholly Foreign Owned Enterprise (WFOE) in China, a foreign individual and foreign company canobtain direct and total access to Chinese real estate market.--I got the informaiton on the net of http://www.jayandshaw.com/en/wgrzq/78-rei.html

The above "advice" is almost worth what we paid for it.

First, nobody on here is talking about foreign businesses investing in property. Everybody was clearly talking about foreign individuals purchasing a residential property to live in.

Second, there is no requirement that a foreign business has to set up a rep office. On the contrary, rep offices are now falling out of favor, and are faced with increasing restrictions on the number of visas, etc.

Third, your post seems to be advising foreign investors to form a sham company in China to engage in real estate speculation. Having a dormant company suddenly sell off the property seems like a risky strategy. Would you be able to get foreign currency exchange from the sale (to get your money out of China) if you never actually operated the business?

Which banks will extend mortgages to foreigners? And any tips for getting the lowest interest rate (the current undiscounted rate is 7.05%)?

Ah, I had heard about these "US mortgages" but didn't realize that they were mortgages based in USD. When I asked the loan manager at HSBC about using a "US mortgage" to finance a local home purchase, he said it was absolutely not possible. Perhaps he thought I meant using a mortgage taken out in the US?

So how does one qualify for a USD mortgage? Does the bank require you to have assets and/or income based in the US? Or is having a large enough China income sufficient? And how does one make payments on a USD mortgage? Is it simply a matter of converting some RMB into USD and then depositing that into a USD account?

This seems like a very good option as US interest rates are likely to remain low for the forseeable future. Regarding currency fluctation, with the long-term appreciation of the RMB the effective rate of a USD mortgage would be 0% or less. Actually, it seems like a no-brainer for a foreigner looking to buy an apartment here. Or am I missing something?