As you know I bought a flat in Dalian four years ago. Fortunately I bought at the right time in the right area.
Things to consider:
Location, environment, amenities nearby, construction quality (very imp.), price...all which go without saying.
I chose to buy a flat in Qing Yun Lin Hai (Clouds and Woods Apts) on Jie Fang road only 2 kms from the city centre. Our estate sits within a valley surounded by mountains. We paid only 3700 per m2, but now you would expect to pay around 7000.
Prices vary greatly. Within the city centre you can expect to pay between 5500-10000. Out of the city centre around 3000, and towards the development zone as low as 2000. However it is important to consider resale value, concvenience and demand and supply.
Environment is everything to me. I love to have a garden. Unfortunately for most, gardens are very hard to come by. I visited at least 30 apt. complexes but found only one which I would consider as having 'a garden'. That's where I decided to buy and I'm glad I made the decision.
Why should you buy?
Why would you buy back home? To save throwing away rent every month. It's a good investment especiall in Dalian. Property prices have been rising at an incredible rate here. However it's important also to consider that in China 14% of newly built apts. are unsold. I'm not sure about Dalian though.
I paid 350'000 for my flat 4 years ago and my neighbour with the same flat just sold for 970'000. Nowadays it's hard to pay as little as what I paid for the same quality, but prices are expected to keep rising nevertheless.
Financing
As for financing it's not usually decided by the buyer. When I bought my flat, the complex had an agreement with ICBC and that was the suggested bank. If I had chosen another bank a lot more paperwork would have been required. Probably a few fat envelopes had been passed around.
Down payment:
If you have a Dalian residence card you can borrow 70%.
If you are a resident outside of Dalian you can borrow 60%.
If you are a laowai you can borrow 50%.
Requirements:
Co-signer for Dalian non-residents. (ie. Someone from Dalian who agrees to pay the mortgage if you don't)
Proof of income letter from employer.
Mortgage rates:
Just like the UK, China has both fixed and variable rate mortgages. I'm not quite sure on the rates now, but I will find out and post them asap. Check back later for specific info.
House designs:
Most were of Chinese design, but many are not. However if you hire a good interior designer there's not much that can't be solved with a sledge hammer and a bit of careful planning.
My house is 140m2 on the sixth floor (no lift) with two bedrooms (we knocked the third bedroom wall down to make one larger bedroom) vaulted celilings (4m high), skylight windows, studio layout (ie. The kitchen is not enlosed but faces the living room through a bar style opening with a breakfast bar). It has two extended balconies over looking the mountains, bathroom with jacuzzi etc. and all the mod cons.
Decorating: "A nightmare"
We had terrible problems when decorating. We used China's most famous decorating company yet still I had to train their 'monkeys' how to decorate. This involved pulling all the tiles down in the bathroom because they didn't know what tiling adhesive, grout or spacers were. Replumbing both the bathroom and the kitchen. Replastering every room in the house. Repainting all of the doors windows and anything gloss. Reinstalling the windows. And that's not the end of it. Virtually everything was redone.
I do have high standards to say the least and I have extensive experience in the construction and decoration industry. The builders and decorators however, did not. They were clearly migrant workers with absolutely no experience in the trade.
Also just like everything else in China, they expected a big envelope of money even after having done a shoddy job (and that's being kind).
I suggest that if you are having your house decorated, supervise at all times or face the consequences. To summarise...decorating was one of the most frustrating times of my life and approach it with extreme caution.
Purchasing furniture: 'God help you all'
Another nightmare. You'll have to travel to all ends of the city to find perhaps one item that you would consider suitable. If you like plastic, faux Victorian or Elizabethan, tacky 60s and 70s style furniture or anything awful then you're going to have no problem. If you don't, then your going to have a really hard time. Happy hunting. lol
All in all buying the house was easy. The bank was great and very helpful. After that it was a headache from start to finish.
I wish those who are planning to buy a house the best of luck.
Remember to choose wisely and don't give up if you don't find anything to your liking. There's something out there that'll suit you, you've just got to find it. It all takes time.
From the minute you pay you can expect to wait at least a month before you get the keys.
Note: Unlike the west, no lawyer is required for the buying process.
Happy hunting everyone.
Mat
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jerryzhou
