How can a foreigner buy a house in Shenzhen?---Shirley Pan

You may ask whether a foreigner can buy a house in Shenzhen or not.
The answer is not every foreigner in China is entitled to buy a house in Shenzhen. According to the "Notice to regulate foreign institutions and foreign individuals to buy commercial houses “(Shen Guo Housing [2007] No. 254), jointly issued by Urban Planning Land and Resources Commission of Shenzhen Municipality and Housing Authority, the Shenzhen Branch of the State Administration of Foreign Exchange, only those who work or study in Shenzhen for more than one (1) year, are allowed to purchase a set for owner- occupied houses in Shenzhen (residential).
Please be noted, here mentioned is referring to buying residential property. Foreign individuals are forbidden to buy commercial properties under his or her own name, unless he or she incorporates a company in Shenzhen to do that.
 
 
As for how to purchase a house, I’d like to remind the buyer to figure out the following points seriously before the purchasing house contract is signed:
 
1.      The buyer’s qualification.
The buyer must pay attention to whether she or he meets the qualified buyer or not, to avoid liable for breach of performance of the contract.
 
2.      The buyer’s repayment capacity and loan qualification.
It is better to pay the full amount at one time for the house. If not, can she or he be eligible for a loan to the bank? The buyer should consider thorough to circumvent liable for breach of performance of the contract.
 
3.      The house status.
Due diligence is necessary.
If the property is a brand-new first-hand house, the buyer need to check whether the real estate developer had valid business license, real estate development enterprise qualification certificate and 5 permits, etc.
If the buyer is interested in the second-hand housing transactions, the best way is to choose a professional agent to assist you to complete the whole process of dealing.
 
 
4. The house price.
The property value was determined by location, structure, historical records, construction costs and prices of similar properties. If the house price includes relevant taxes.
When vendors and buyers register housing transactions at much lower prices than property value, the system can automatically send a warning signal to remind taxation bureau employees It would also produce reasonable property prices and the housing transaction center would act for the taxation bureau levying the taxes, which would include business tax, personal income tax and a transaction tax for buyers.
 
5. Relevant rules, regulations and taxes.
 
SHENZHEN will release a detailed plan recently for local implementation of the new national tax law that levies a 20-percent tax on profits from sales of pre-owned homes. That means Shenzhen’s housing market likely will be greatly affected by the upcoming policy.
 
6. The relationship between the seller and the title of property certificate.
To clarify whether the seller and the title of property certificate is the same person, whether the seller has the right to sale the house, otherwise the transfer will be difficult. Also please check the details of the property certificate to confirm the integrity of the property rights, there is no mortgage or tenants, etc.
 
In a word, purchasing house is not a small deal. Above reminds are only for your reference.
Shirley Pan
April 22, 2013