A professional consultant can help you navigate the sometimes murky buying process
Beijing residential property is an attractive investment prospect, but for some buyers it can be a bit murky. So what should a potential buyer be looking for when buying in Beijing?
Entry to the market is easy -- there are no restrictions on foreign investors buying property in China and mortgages are available. However, exiting the market is less clear. There are still areas where the market is immature, such as with finding tenants once you have bought a property.
Meanwhile, the government is about a speculative bubble. New taxes are reportedly coming into effect, and there may be restrictions on taking money out of China. The new measures will also likely limit credit for property deals. It?s worth noting that these new rules follow last month?s changes in legislation in Shanghai requiring home owners pay off their mortgages before selling property.
Changing laws, of course, introduce a measure of uncertainty into the property market, making it essential that you talk to a property consultant.
?We deal with clients who have successfully bought and sold properties here. You have land right use for 70 years once you?ve bought,? said Anna Kalifa, senior manager of research at Jones Lang LaSalle in Beijing. ?Location, location and quality are the first steps. And doing your due diligence,? she said.
Due diligence is vital to make sure the developer is not going to go belly-up before you?ve moved into your new property. The actual mechanics of buying are straightforward. You find the property, sign a deposit agreement and put three percent of the value of the property down. Then you sign a notarized purchase agreement and pay afurther 27 percent to the vendor. The ownership details are changed at the district?s real estate office, you pay tax and the vendor receives the remaining 70 percent of the purchase price. Then you receive your property licence, and the keys to your villa, apartment or courtyard-style home are yours.