Forum Replies Created
- Originally posted by learn&share:
Hi Ian,
Wouldn’t it be inconvenience to invest in China, if someone doesn’t have a friend or relative there.
And By the way, what are the conditions for a foreigner to invest in the mainland?thanks,
I wouldn’t suggest buying in China unless you were able to keep check on things yourself. I’ve been working in China for some years now, so it’s not a problem. Taking profits is also a problem as the currency is not yet fully convertable, although it is likely to substantially appreciate.
The market is an intersting one to watch. It’s also a lot of fun setting up and renovating apartments where the cost of decorating is relatively cheap and so many products are available.
Property Management! What’s that?
The agents I have dealt with in China only provide an introduction service. I have a friend who manages my properties for me.
If you want someone to look after your property for you, you might consider investing in a serviced apartment which will let out your property short term – for a fee of course.
One of the international banks such as HSBC might have a product. What currency do you want the loan in?
Ian.
I recently bought an up-martket 3 bedroom apartment in Nanjing China for around A$130-140K. The oncosts for the sale were much lower than for my property in Australia. Furnishings were also much better value than in Oz.
The purchase was for my own residence but, for the sake of comparisons, similar apartments on the estate rent in excess of $1000 per month, more to foreign companies who need staff housing. My choice was determine more by the stability of the investment and my desire to make good use of a housing allowance than by investment/profit ratios.
So, what do you get for this price in Nanjing? The apartment has 122 sq. m. on the ground floor and 30-40 sq. m. in the three room cellar. It is situated less than two minutes walk from a lake facing the Ming Dynasty city wall. Situated in manicured gardens, it is serviced by swimming pool (in summer) and a comunity centre with bowling alley, indoor sporting facilities, supermarket and restaurant.
Who can buy in China? That seems to depend on where you want to buy and what kind of property you want. I understand that foreign property investment is encouraged, but it might be restricted to new developments. The regulations are quickly changing. For residents in most cities second hand properties are an easy option, provided that the authorities have recognised and registered them as “safe” housing.
As for the finance, I redrew 20% from my mortgage in Australia and borrowed 80% from the Bank of China. Neither bank showed much interest in my loan commitments in the other country.
Having discovered how easy it is to set up overseas property investments, I am keen to do so in other locations, more fore retirement income and lifestyle flexibility than for immediate income. Please respond if you have a story about your propertypurchase overseas.
Ian.
