Hi, I'm trying to find some information about buying property in Kunming; I'm a foreigner that visits Kunming on business several times each year and have been thinking about buying an apartment instead of staying at hotels all the time.
Could anyone give me some advice on this, or even details about where I could go to get the information?
You can post to this thread or email me direct at frank@traminer.net

you'll find it very difficult (if not impossible) to get any sort of loan or mortgage at the moment. have you thought of sharing the rent with others in a similar situation? i'm not sure if you can buy property without a residence permit... maybe someone else can help with that.

Thanks debaser for your reply, I'm not looking for a mortgage, and I'm not interetsed in renting a shared property, I just need more information on how to buy property. I dont have a residence permit, I'm only a regular visitor.

You can buy an apartment, but you need to pay all the amount when you sign the contract. Also, I think you already know that you can only have the apartment for 70 years according to the property law of China. My husband and I helped our foreign friend to buy two apartments already. Please contact me with tao.adele@gmail.com if you need more information.

Also, you are theoretically only allowed to buy one apartment, to have lived in China more than 1 year, and for the apartment to be your primary place of residence. How strictly this last one is enforced varies from region to region, though you are potentially leaving yourself open to problems down the line. Having said that, since I bought my apartment 3 years ago I have lived in it less than 6 months. Letting it out would also have potential to create problems for yourself.

Hi Frank, I've just bought an apartment last September so I'll shed some light on the actual process.

Assuming you qualify to purchase real estate under the new rules, all you need to have your passport translated by the Yunnan Translation professional Association near Kundu. The translation is usually done on the spot in about 30 minutes or less and the cost is only about 30 yuan. You and the owner of the property then need to go to the registry office, you need to bring the translation of the passport, your original passport and a photo copy, the previous owner need to bring the title deed to the property. At the registry office you need to fill out some forms, pay the various services fees and taxes. In about a week you can go back to pick up the new deed with your name on it, that's about it.

This was before the new rules went into effect, so you still have to inquire as to whether or not you can qualify to purchase a property now. But the process it self is pretty straight forward.

Tonyaod. Can you tell us a little about the fees and taxes? Are we talking set fees or something like a small percentage of the price? I know when you buy a new car you have to pay 10 percent of the price added on in taxes. Anything like that buying property as far as you know?

The fees is a percentage of the listed sales price you put in your paper work (more on this later). The percentage also depends on whether or not the previous owner held the property for more than 5 years. If they have than all the fees and the tax comes out to be about 2-3%. If they haven't than I think there are additional taxes which would come out to about 5-8% of the total transfer value.

As to the amount of the sales price you put in the paperwork, it is standard practice to put a lower amount than what the actual sales price is. For example, a house sold for 500K would put 260K as the sales price on the paperwork and all the tax would be based on 260K.

There are some small consequences to consider when you put a lower sales amount. If the hold the property for 5 years or more before you sell, then it doesn't matter too much, however, if you sell within the 5 year period, then the difference in the amount between the purchase price and the new sales price is considered profit for you and therefore subjected to a income tax which unless you are willing to lower your asking price, would be a deterrent to potential buyers since they would need to pay this amount.

Frankn
First - regret I have no people leads for you at this time.

I believe there are several loopholes on the purchase of multiple properties - although this topic may be of limited interest. Personally, I'd use a known and recognized attorney with a LONG history for safety - that or local relatives who also own property - but better to use an independent third party - just to ensure you own the property title clear and free (aka with no hidden debts). New residences can be less complicated, both legally, financially, and operationally (aka stronger infrastructures such as plumbing, sewage, electrical, gas, water, etc). Older places - you may find you're tripping the main circuit breaker every time to turn your printer on...and other logistical nightmares - replacing a circuit breaker with a higher load can quickly devolve into an exercise in anger management. Also - older places usually come with inherent gate guards - who tend to shutdown at midnite. Newer mega places usually come with 7/24 access. You do NOT want to be stuck outside your apartment complex on a cold rainy night banging on the main gate trying to get the deep slumbering guard to wake up and let you in, waking everyone in the neighborhood (including the guard across the street) except the guard - although that's what saunas are for.

International law firms, accountants, and real estate firms can assist in the process for a fee - list in order of decreasing cost - just to make sure you've followed the most recent approved procedures as laws still can become more flexible in proportion to distance from beijing (example the recent thread on land seizures in and around Yunnan).

1. Individual purchases - Individuals may purchase multiple properties in different cities or areas. As most police databases are not linked - this is a legal blindspot - buyer beware.
2. Corporate purchases - corporations may purchase multiple dwelling units for employee housing. Consult your attorney.

That said - you may wish to use a local RE firm "experienced" with foreigners - as you may also want them to manage the property while you're absent - example send someone to clean the unit before and after you leave - and maybe while your domiciled here - stock the fridge with groceries if you cook/eat at home - operational considerations, pay utility bills (power, gas, water, internet/phone, etc ad infinitum.

For recommendations on companies who can assist - I suggest you first narrow down the area you want to live in - then the expat community can recommend various RE agents (e.g. my cousin's son with extremely marginal english skills - who specializes in areas around the old airport - its quieter now that air traffic moved to Chenggong - but you have to worry about ground pollution in the area - something the Chinese won't tell you (or more probably don't know about).

For SERIOUS research - in addition to asking the expat blogs - highly suggest you retain a temporary assistant to do this kind of research for you and provide a report - the most English FLUENT students tend to come from the tourism universities - so non-kunming natives aside - look for these kinds of graduates first. They can be a big boon in helping you navigate the various language impeded activities - but remember - many are young and naive - so you'll have to train them on the business side of things - such as preparing a useful report with REFERENCES (example RE agents, attorneys, CPAs)...i.e. you'll need to give them the FORMULA.

Also - remember chinese attorneys are NOT the same as US attorneys - they have different skill levels and rankings of attorneys - buyer beware. Accountants are the same, RE agents DEFINITELY your mileage WILL vary.

Some of the university teachers with modestly skillful english are married or related to such professionals - that can also be quite helpful as a local resource for a variety of reasons - to include expanding your local network - if such things are of interest.

Cheers and good luck.

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