Buying A Home in China

[Willy The Londoner]

We are into the fun and games of buying a second home here.

There is a new complex being built a block away from our existing home and we really like the idea of a much bigger apartment that is twice the size of our existing one. 

Before the developer would accept a deposit from us we had to make a trip to the Tax Payers Hall and obtain a copy of my wifes tax records for the past 10 years to ensure that she was not behind in any payments to the Government!

We did this and low and behold my wife in those ten years had a shortfall in her payments of 16.40 rmb less that 3 dollars I believe. That entailed her making a payment of this amount and then when paid we received a printed statement for each of those ten years in duplicate.

A day or so later we returned to the developers sales office to find that the tax statement was only needed to show how much one earned and how much tax one had paid to qualify for a bank loan and to satisfy the developer that we could pay for the apartment.  A wasted journey to the tax office as far as I was concerned as we had no need of a bank loan but without it the sales office would not accept the deposit from us! It cost more in gas, time and costs of paper and printing but it was an eye opening trip.

With the first home we bought this was a pre-lived in one and we paid a deposit and moved in and then paid the balance a month after moving in!!!

A week after signing the contracts for the new home we paid the full amount to the developer and we now have to sit back and wait for that particular block to be ready which they estimate will be sometime in September.

Then which ever company we give the contract to will go in and and start to convert the concrete shell into the apartment of our choice which will add another 2 or three months depending on what 'thank you bonus' we pay to the individual workers on site doing the fitting out.

So maybe by Christmas or Western New Year we could well be installed in the new apartment and then we will have to make a decision whether to sell or rent the existing one.

With the bank interest rate being very low here and maybe getting a 6 - 7% from renting then that may be better than selling.

Any thoughts on this.   Better still anyone want to rent a home from the New Year?

Willy

[Pineau]

I will tell my friends but i don't think you will have any trouble renting in today's market.

How big? number of rooms? what floor? Is there an elevator?  How much per month?  If you decide to sell, how much?

[JohnB]

".. that she was not behind in any payments to the Government!
We did this and low and behold my wife in those ten years had a shortfall in her payments of 16.40 rmb..."

kind of funny in a way. it is tax time in America. Jing does not understand why she has to sign the American tax
form since she is in China. I told her no matter where we are, we are required to pay taxes to the government every year.
& it does not matter where we are domiciled. 

Willy,
kind of curious. what are the going prices of new apartments? May I ask.
Trying to get an idea of the China terrain thing of things, as to what is doable.

Jing wants Seattle big time. Now. I am resisting that.

[Willy The Londoner]

We will wait and see what the market is like early in 2015 when we move into the new place.  Then we will decide on either a sales price or renting price.

This one is only 60 m2  and has two bedrooms. In the three years that we have had it every thing that needed fixing has been fixed.

It is on the third floor with no elevator.  Best thing about it is that there is lots of sunlight but no direct sun into the property. 

The new place is 130 m2 so will have a lot more room to wander around in.

Willy

[2hip]

John B, over time she will wear you down.  She has the proper equipment to bend your will...smile

[Willy The Londoner]

Willy,
kind of curious. what are the going prices of new apartments? May I ask.
Trying to get an idea of the China terrain thing of things, as to what is doable.

The prices in Zhongshan are quite reasonable at the moment compared to the most popular and highly populated cities.

Our present apartment is valued between 450 and 500,000 rmb.

Our new apartment which will be finished to our specification will probably work out to a little under 1 million rmb fully furnished.  But there are many other pre owned completed 3 bedroom apartments for sale at prices between 550 - 800,000 rmb.

As I say the prices in Zhuhai are a little higher then go up considerably in Shenzhen and very much higher in Guangzhou  compared to here.

The prices will rise a little more now we are connect to the high speed line to Beijing.

I paid 2400 rmb rent in Zhuhai and then when I first came to Zhongshan the monthly rent dropped to 1400 rmb

Willy

[Scottish_Robbie]

.......will have a lot more room to wander around in. .....

Will that be AFTER you walk up those flights of stairs......AFTER COMING UP THE STAIRS WILLY YOU'LL BE HALF DEAD MATE....!!

[David E]

With the bank interest rate being very low here and maybe getting a 6 - 7% from renting then that may be better than selling.

Any thoughts on this.   Better still anyone want to rent a home from the New Year?

Willy

Willy

As always us "older" folk consider assets in a slightly different light to the young bulls out there....

When you are young, with time on your side, asset growth is important.....ultimately it is your assets that will contrive to keep you in some form of luxury as you get older, you convert assets to cash and benefit from the slow and steady growth of these assets over the long haul.. If, however you are at the "twilight" of your life, then cash is King !!!!

So to keep your 2nd apartment for rental would only give you marginal asset (future cash) growth in the short/medium term, whereas converting that current asset to cash gives you immediate access for whatever you need over the next phase of your life.

That is sorta how I planned my own retiremant and now I am steadily selling accumulated assets plus superannuation cash to generate the amount of income to keep us in the style that we wish. If, however I live to 120 years old (!!!!!!) I may run out of assets.......(dont think that is a likely outcome)....

[Willy The Londoner]

If, however I live to 120 years old (!!!!!!) I may run out of assets.......(don't think that is a likely outcome)....

What living to 120 or running out of assets?

We will probably sell because as years go by the value of older homes must fall as their life gets closer to that 70 year mark. Still a way to go for our present one but it is a consideration.

I have toyed with the idea of buying  unfinished homes and then sit on them until the complex is completed and then sell. You can get an idea of the increased value in these unfinished properties from the sale prices asked as the values rise for the last few homes available on these complex. 

My brain will never allow me to retire, retire, until its normal functions cease altogether.

Willy

[Willy The Londoner]

.......will have a lot more room to wander around in. .....

Will that be AFTER you walk up those flights of stairs......AFTER COMING UP THE STAIRS WILLY YOU'LL BE HALF DEAD MATE....!!

Hopefully I will be able to continue climbing the stairs to our existing home for the short period we will be staying there as it is there that there is no elevator. The new place has two elevators and each floor serves four apartments. And it has a plus considering it is Chinese and that is it has slopes which affords wheelchair access should I ever get to that state. 

Willy

[Scottish_Robbie]

I take it I'll be pushing the weelchair??

[Willy The Londoner]

I take it I'll be pushing the weelchair??

Pushing it!!
 Pushing it?? 
You will be pulling it.  I will want my pusher to see where they are going.
Willy

[IrishGuy65]

I take it I'll be pushing the weelchair??

Pushing it!!
 Pushing it?? 
You will be pulling it.  I will want my pusher to see where they are going.
Willy

A rickshaw wheelchair... interesting.

[Willy The Londoner]

I take it I'll be pushing the weelchair??

Pushing it!!
 Pushing it?? 
You will be pulling it.  I will want my pusher to see where they are going.
Willy

A rickshaw wheelchair... interesting.

I never thought of that.  I was just concerned that if he was behind the wheelchair pushing then he would not be able to see, where he was pushing me, over my shoulders.
Willy

[Scottish_Robbie]

aHH A PUSH YOU PULL ME VEHICLE....