1. Foreigners can invest in real estate in China.
2. Foreign investors can get a mortgage.
3. The Chinese government can not just take your home, as defined and clarified by laws promulgated in March and October 2007.
4. The China market can provide fantastic investment opportunities.
LOANS & LAWS:
From 1st October 2007, mortgage down payments for additional units were likely to rise from thirty to forty per cent. Also, the seventy "lease term" for a property could be automatically renewed. Thus, clarifying land ownership. The subject of how much one can borrow is a little trickier, however, and depends on the bank and the investment. Most private investors can get a mortgage relatively easily. And as a bonus, mortgages in foreign currency are locked into an exchange rate. But, the bargaining power over mortgage rates is smaller as a private investor. Banks will not usually loan more than five million yuan which may make it difficult to finance more expensive properties without a larger down payment. In most cities, prospective buyers must make a down payment to the seller before applying for a mortgage. If a loan should be denied, the seller must return the down payment. In most cases, there aren’t any problems, but there have been some first-time buyers who, without the support of an agency, have had to resort to legal action to get deposits refunded.
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