Hello all,

I would like to know what the rules are to buy Real Estate in Shanghai (or China in general) if you are a foreigner. I am a Canadian citizen coming to Shanghai soon and would like to know if it is possible to buy instead of renting. Any info on the property purchase process for foreigners will be welcome.

Cheers.

Merdy (Montreal Canada)

A foreigner can buy properties in SH, or China. I've been looking for apartments & getting ready to buy one, but I'm still checking to make sure I'm protected. Will post as I learn more

Francis

Oh... I learned that if you want bank finance to buy an apartment, the bank requires at least 30% deposit in cash - not a promissory note. That was a surprise after living in Australia where 5-10% is the norm. On the other hand, interest rates in China are unbelievably low for mortgages: about 2-3%. Very nice !

for a foreigner, if you wanna buy an apartment or villa, you'd better buy some new aparment or preserved construcion...

mortage rate , about 2-3%?? which bank?
what i know is : 4.77% ( 1 to 5 years mortage ) 5.04% ( 6-30 years)

that is the bank loan for $

Foreigners can buy property in Shanghai. 30% down is required for a mortgage. Rates are lower, as described above, if you're paying back in US$. There is an extra tax for foreigners, but it's .15% of purchase price, if I remember correctly.

Thank You all, this is the post I had been waiting on.
Any reputable realtors on the forum?
Particularly fond of the area around Sinan Lu,
And Taikang, Luwan district.

I will be back in the city in a few weeks.
Thank You.
I am thinking about buying a place for my girlfriends parents to stay
I do not like the cr**hole they have been living in.
Ideally something that I can fool around with:
Ie; rebuild...something to keep my head busy when in town.
Modernize, westernize, so I feel comfortable when I am staying there as well.
And give them a taste of how I live so they think I am good enough for their daughter.
Any ideas for price in that area?

johnny_tropicana wrote:I will be back in the city in a few weeks.
Thank You.
I am thinking about buying a place for my girlfriends parents to stay
I do not like the cr**hole they have been living in.
Ideally something that I can fool around with:
Ie; rebuild...something to keep my head busy when in town.
Modernize, westernize, so I feel comfortable when I am staying there as well.
And give them a taste of how I live so they think I am good enough for their daughter.
Any ideas for price in that area?

it is gonna be very expensive for either old style or new houses.

In China, the boy often wants to buy a house to show to the girl's parents that "I am capable and rich enough to despel your worry that your daughter may not be living a happy life with me". Definitely, you have gone one step further to buy a house directly for the parents. I guess you are set to win their hearts for sure.

Good luck!

I was looking at one of those estates that are being built and querying about the possibility of buying an apartment during the weekend, and was told that you need to supply a Chinese name for registering the property. Foreign (read non-Chinese) names are not acceptable. Can anyone shed some light on that?

johnny_tropicana wrote:I will be back in the city in a few weeks.
Thank You.
I am thinking about buying a place for my girlfriends parents to stay
I do not like the cr**hole they have been living in.
Ideally something that I can fool around with:
Ie; rebuild...something to keep my head busy when in town.
Modernize, westernize, so I feel comfortable when I am staying there as well.
And give them a taste of how I live so they think I am good enough for their daughter.
Any ideas for price in that area?

This has disaster written all over it.

Can you buy real estate as a foreigner? Yes.

Is it worth the hassle? Will you get return on investment? Are you protected in the commonly accepted ways you're probably used to in your home country? NO.

You will be taking on a lot of risk for little to no reward.

Yes foreigners can buy real estate in Shanghai. But you have to meet some basic criteria:

1) Proof that you have been working in Shanghai in over 12 months. An employment contract in Chinese is required.

2) For obtaining mortgage you have to produce income proof. Some banks may require evidence of local tax payment.

3) You can own one residential property under your name if one is qualified passing 1 and 2 above. .

4) A foreigner is not allowed to hold commercial properties in person (like retail shop or office building). Such assets have to be held by a PRC locally registered company.

In case you want to know more about the procedure and taxes invloved in buying a residential property, you can visit the following web page : http://www.villable.com/transaction_tax_02.php

You can use your Western name for the purchase? No need to get it registered with Chinese characters?

The Chnese laws only accept Chinese translation of western names. They usually take your employer's translation as evidence. A foreigner has to present an employment contract translated into Chinese during the conveyancing process.

johnny_tropicana wrote:Would it be easier to register the property to a business?

A: A locally registered corporate can buy real estate in Shanghai according to its business needs e.g. a retailer buys a shop, a manufacturer buys a factory building, a consultant firm buys an office unit etc. , any business can buy residential property for the purpose of staff housing but the kind of taxation a corporate shoulders may not make it a desirable option. There are many ways for a corporate to get around such a restriction. Seek professional advice from an ethical property consultant is a must.