Forums > Living in Kunming > Bank Loan for buying a house in Kunming There is a lot of confusion at every level over how the new regulations (c. Jan 2011 in Kunming Shi) work out in reality.
I have no solutions but can at least tell you what I understand. Caveat: this may or may not be current knowledge and may not be accurate.
Under the old regulations a non PRC citizen could officially not get a loan, but some did.
Under the new regulations all persons must have paid tax in Kunming for a year in order to buy property in Kunming (Chinese people too). You can only purchase a second property in Kunming if you have a Kunming HuKouBu.
Citizens cannot purchase a third or subsequent property in major cities in China. However, many people are buying in county level areas.
General notes.
The best source of advice on property ownership is the housing bureau.
The best source of advice on what the bank can do is that particular bank (even down to the branch). Make sure that you go to a main branch (not sub branch) as the managers there will have more discretion on how the rules are interpreted.
The bank will tell you what paperwork is needed for their institution, and where to get it.
Chinese banks are good at gouging fees from all of their customers, 12000 rmb seems reasonable to get something that is technically irregular.
Companies can also buy property, perhaps your company can. However, you are then into the realm of a commercial mortgage with shorter repayment periods (10 yrs I think) and higher interest rates. There are no limits on how many properties a company can own.
Beware of SOHO. There is a lot of SOHO property on the market that appears to be residential. It is the developer getting around some of the regulations. The problem for the buyer will be the commercial loan fees and commercial taxes for purchase or sale. But lots of local buy this way to get around some of the limits on property. Private owners can also buy SOHO.
If you are buying new, the developer can also help you get loans if they have a special relationship with the bank.
Most regulations in China are open to local interpretation. The fact that you are getting different stories is not important. Just give them what they ask for, and expect this to change as the process moves along. This is not surprising as each level of the process with have people with a slightly different interpretation of what is needed by whom. If you can't get what you want from one bank, try another; or try another way. There are no definitive answers, TIC.
Good luck
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