Chinese Property Guide

China is all set to become the biggest economy in the world in the next few decades and many overseas property investors are now looking to China to pick up property before the boom. However with a population of 1.3 billion, where do you start looking?

The first choice of many property investors has to be China’s capital city Shanghai. Many multinational companies have already started locating their regional HQs in the area, and home to 21 million people, there are many different properties to choose from. Shanghai is also undergoing strong infrastructure and development improvements meaning it should be a strong place to invest in property.

Overseas property buyers are often shown the luxury, high-end properties in the city which sell for around $1.5 million. However this has a small rental market therefore it is advisable to seek out properties on a small budget, perhaps those around the $250,000 mark as this means that the property can be rented not just to tourists but also to locals.

There are plenty of styles of property to choose from in Shanghai – from old villas through to art-deco style buildings, so there is sure to be something there that catches every property investors eye.

Chinese Property Mortgages

When buying in China, it is advisable to factor in 10% costs for taxes and agents fees. Mortgages are generally only really found through Chinese banks. Mortgages tend to be for a maximum of 60% of the property price, on a repayment basis only. Make sure all your paperwork is in order as banks will scrutinise all your papers carefully.

Taxes on Chinese Properties

A 5% tax will be levied on gross rental income. A 5% tax is imposed on anyone who buys or sells within two years of purchase. You may also be liable for taxes in your home country.

RSS Feed for This PostPost a Comment

css.php