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How to Find a House in China

chinahouseFinding a home in China is not as easy as moving down the block, but it can be accomplished with the least amount of grief. However, it is going to take a little bit of planning and patience to find a house in China. It is also important to note that purchasing Asia real estate can be quite different than purchasing North American real estate and the rules can be quite different, so vigilance is always recommended. Below are some tips that are useful for buying a home in China and cutting through the red tape.

Use A Real Estate Agency

It is always recommended to use a real estate agency when buying Asian real estate. Real estate agents not only know where the most affordable houses are located, but also know what more of the desirable neighborhoods are located.

When choosing a real estate agency it is important to find one that is proficient in dealing with foreign clients. Many local Chinese real estate agencies lack the English skills or the expertise to deal with clients of other nationalities.

Obtaining A Mortgage

What many people don’t realize is that before they can get a mortgage on a Chinese home they have to meet a few requirements. First, they have to have lived in China for at least year. Second, they have to have a 30 percent down payment. This can present quite a challenge for foreign buyers because foreign exchange rates prohibit converting more than $50,000 each year. That means that either the seller must agree to accept the dollar as their down payment, or special permission must be received from the Foreign Exchange.

Understand The Contract

Most Chinese contracts, including purchaser agreements and mortgage papers, are available in both Chinese and English. However, the English documents don’t have the same force of law in Chinese courts as the Chinese documents. Therefore, it is important to have someone you trust and is capable of reading both languages to go over the documents with you.

Understand The Taxes And Fees

Sometimes home buyers in China become confused over the taxes and fees associated with buying a home. However, they can usually be broken down in the following manner. Most home buyers will have to a five percent deed tax and this tax is usually in addition to the three percent tax levied for the agent’s commission. Home buyers also should be aware that some parts of China also levy property taxes and these taxes must be paid in addition to the deed taxes.

Keeping the above guidelines in mind will help any consumer looking to find a home in China avoid many of the headaches associated with purchasing Asia real estate.

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