Buying Property In Shanghai \/\/FREE\\\\
According to the Chinese Property Law, foreigners cannot buy land in China, as the land belongs to the state. Even if some limitations exist, foreigners who work in China or want to relocate here can purchase a property according to their needs and budget. If you want to move here, you can rely on our immigration lawyers in China.
buying property in shanghai
Although the general requirements have changed, rules may be different in various Chinese regions, like Shanghai, where it is possible to have additional requirements; in this sense, the foreign persons who want to purchase a property in Shanghai have to prove that they are married. The legislation applicable in Shanghai also states that a foreigner without a household registration is allowed to purchase only one property. In Beijing, foreign persons would be permitted to buy a house if they pay social security and taxes for five years before the purchase.
The number of houses that can be purchased by a foreigner in China is no longer regulated to a maximum of one. A mandatory rule is that foreigners use the acquired property only for residential purposes and not for renting purposes or other activities. An important aspect is that the new legislation is available for Chinese mainland.
Foreign companies and foreign citizens who want to use a property for other needs than their own must firstly open a company in China. The following requirements need to be considered when wanting to buy a property in China:
Our immigration lawyers in China are at your disposal if you want to move and buy a property here. In addition to this, if you are a foreigner who is in China to conclude a marriage by divorce, you are welcome to get in touch with our lawyers. Choosing to divorce your spouse is a major life decision. In addition to this, the decision to engage an attorney is a challenging task; for starters, you must decide who to hire and how much it will cost. For acquiring all this information, you can consult with our lawyers. They can guide you in detail about the proceedings of divorce in China.
The foreigners who have been living in China for a while must have witnessed the housing quality in China. If they are trying to get their personal property instead of paying apartment rents, they can contact our attorneys in China for a complete guide. However, here is a general guide provided for foreigners interested in buying a house in China:
An important aspect for persons interested in purchasing a property in China is that foreign banks can offer various types of loans to foreigners. Real estate due diligence services can be offered by our attorneys so that you can make sure that the property bought is sold in good faith. We remind you that our lawyers can ease the procedures related to immigration to China.
Here are some of the restrictions described for foreigners while purchasing a property in China. The property that a foreigner can own must be residential, but if he/she wants to have a commercial property, then he/she must incorporate it in China. A foreigner cannot be a landlord in China; he/she further needs to pay an initial 30% of the purchase price to the seller in RMB and a 1% deposit if he/she obtains a mortgage.
A person seeking to buy a property in China can search for an apartment with the help of a real estate agent or on their own; it is advisable to receive the legal assistance of a Chinese lawyer who is familiar with the local procedure. A preliminary purchase agreement is concluded with the seller and if the terms and conditions are agreed upon, the buyer must make a deposit, which is usually established at 1% of the value of the purchase. The final sale contract needs to be signed by both parties and notarized. Our Chinese lawyers can provide you with further information on the provisions of a purchase contract. The transfer of ownership is performed under the surveillance of the Deed and Title Transferring Office, which will then issue an ownership certificate, testifying the new owner of the property.
The notarized contract comprising information about the property purchase, the house insurance, the 0.5% transfer tax, the 7% construction tax, the property tax of 3%, and the notary fees are among the costs related to property purchase in China.
The average house prices differ from city to city in China. In central Beijing, the prices per square meter conservatively start from 34,000 Yuan. Xujiahui, one of the most expensive areas in Shanghai, has prices from 103,724 to 116,690 Yuan per square meter. The average price of pre-owned apartments in Shenzhen is about 21,000 Yuan per square meter as it is among the biggest property markets in mainland China. Whereas, in Luohuand Nanshan districts, the houses are more expensive. Guangzhou is the third-largest city in China and a new apartment in this city is worth up to 18,500 Yuan per square meter.
Before concluding any final purchase agreement, our Chinese lawyers can help the buyers with specific information on the property. The due diligence procedure for real estate properties in China includes the verification of the following issues:
The financial statements for the property will be thoroughly checked by our team to make sure that there are no mortgages on the house. The information on the building will target specific data, such as reports about the safety of the building, seismic risk, environmental reports or mechanical system reports.
Selling a property in China may represent a challenge for the seller, in terms of taxes imposed by the Chinese legislation. Our law firm in China can represent your interests, according to the sale you are interested in, but as a client you should know that the following taxes may apply:
Identify a property you would like to purchase. You can search for suitable properties on your own or hire a broker to search for you. We can also introduce you to English-speaking real estate brokers in China.
If you purchase an older home, the government has the power to purchase your home and tear it down for new construction. In this case, you may lose money on your investment. The newer your home is, the less likely it is that this will happen.If you sell your property with only 40 years left on the lease, that will be reflected in a lower sales price.
If You Have Questions About Buying Property in China, Contact YK Law Today.We keep current with housing trends and local rules and restrictions in China and can help you purchase property in China as a foreigner. Call us to discuss your plans to purchase real estate in China.
If you purchase an older home, the government has the power to purchase your home and tear it down for new construction. In this case, you may lose money on your investment. The newer your home is, the less likely it is that this will happen. If you sell your property with only 40 years left on the lease, that will be reflected in a lower sales price.
If You Have Questions About Buying Property in China, Contact YK Law Today. We keep current with housing trends and local rules and restrictions in China and can help you purchase property in China as a foreigner. Call us to discuss your plans to purchase real estate in China.
The answer is yes, foreigners are allowed to purchase property in China! The essential requirement is that you have studied or worked in China for at least one year on a residence permit. Foreigners are allowed to only own one residential property for dwelling purposes. You may not rent out the property or act as a landlord. Requirements and restrictions may differ in different provinces and cities. For example, Shanghai requires that non-Shanghai hukou families, including foreigners, have to provide proof of income tax or social insuranceto the local government.
All land in China is owned by the Chinese government, who then lease it out for 70 years at a time. When you buy a home a China, you are only buying the property and not the land the property is built on, meaning if the government decides that they need the land your property is on for any reason, they may evict you. Although this may sound a little severe, it is actually not a big problem. These regulations were first amended in 1988, making the earliest expiration date of leased land somewhere in the late 2050s, which is still a long time away. If it does happen that the government evicts you, you will be compensated.
Selling a home in China is very similar to the buying process, just in reverse order. As when buying a home, it is best to have everything be handled by a reputable agent. You will also have to pay transaction fees, land-use tax and a number of other minor costs as a seller.
Investment returns for residential properties can amount to 13% in Shanghai, according to Yunfang Data, a Beijing-based real estate consultancy. Couples who are eager to take advantage of the smaller down payment would opt for a quick divorce after buying a first property together. Following the separation, they would register their existing homes with the name of a former spouse, leaving the other one buying a new property as a first time buyer. Very often couples would remarry after purchases are completed. 041b061a72