We have heard for years that there is a bubble, particularly in Shanghai, and it is true that prices have fallen slightly there. But I have to wonder if it is not still a good investment. Afterall in big cities (Tokyo excluded) prices tend to bounce back pretty well. In New York or Hong Kong there may be dips, but long-term you should be in good shape. (Correct me if my facts are wrong).
So one thing I would want to know is, there are rumors that they tax the crap out of you if you turn property over in fewer than five years. Is this true, and if so is true for everyone of just foreigners? If that's true then it seems even less likely that a bubble would continue since there would be little incentive in quickly flipping property.
If people have property owning experiences in China I would be interested in learning more.
The Geezer
Comments
Bubblicious
You make some good points Geezer. In theory Chinese property should be a good investment, even with all of the talk of a bubble. Basically there is a pretty good chance that the market with crash at some point, much like the stock market. But that doesn't mean it won't rebound.
There are two additional concerns that I would have that you did not mention. First, most Chinese buildings are made very poorly. What you're buying now might look good, but who knows if they'll have to tear it down in 15 years or what it'll look like. This could be an issue when you think about it together with the tax issue.
Second, no one actually owns the land. It's all rented on 99 year leases. This may change, and if the building is brand new it may be okay. But let's say it's 25 years old, and you want to keep it it for 15. If the laws don't change then an apartment that could theoretically by seized some time down the road would lose value, even if it was an unlikely outcome.
Biggest issue
seems like taxes and quality would be a much bigger issue than having the land repossessed if the lease ran out. Besides, can't the government force people of the land anyway?
Hutong
Some guy just bought a hutong for 14 million bucks in beijing. bet they won't tear that sucker down!
Pool in the basement
Apparently he's a Russian who is planning on building a pool in the basement!
Hi Geezer,that is true.they
Hi Geezer,that is true.they tax the crap out of you if you turn property over in fewer than five years.No matter you r foreigners or chinese people.Wanna dicuss the housing prob more if you r interested.My mail:chrisfu1227@hotmail.com.Btw,am doing leasing and selling in DTZ Chengdu Branch.
Proof of Marriage for House Purchase in China
All,
I am new to this Chinaexpat forum. Just wondering if anyone has been asked to provide proof of marriage in order to buy a house in China. I am a U.S. citize and my wife is a Chinese national. We got married in U.S. and had trouble proving our marriage since the China housing department asked for Chinese Consulate in the U.S. to stamp our marriage certificate. Does anyone know if there is an easier way to prove a marriage between a U.S. citizen and a Chinese national without me having to deal with Chinese Consulate in U.Ss? Thanks!
Kenneth
Re:
Hi Kenneth,
Register your marriage in your chinese wife's hometown marriage registration office. It's a snappy issue.
market
Businesses are predominant in capitalist economies, where most are privately owned and typically formed to earn profit to increase the wealth of their owners.
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