The main issue with property investment in China is that its value primarily depends on appreciation. Buying a property to rent out isn't a smart financial move-that 82m² unit might only bring in $10,000 to $12,000 per year. In contrast, here in Texas, a brand-new property worth half a million dollars can generate over $30,000 a year in rental income.
I would never buy a property to rent out in China. If i did so it would have to be in my wife's name as foreigners can't rent out properties. If i was to have a rental property, it would be in Canada. I am getting a second property to live in, and my current property is smaller. A family member would use our current property.
I made a mortgage calculation, if you purchase a half million home with 20% down ($100k) at 6.95% interest rate (current market), you will be paying about 3k a month including home insurance and property tax. On top of that, to make an extra $30k a year income, you will need to rent out $5.5k a month. Is Texas rent per month that high? or you mean only getting $30k a year, without calculating the mortgage? In that case, you will be at a lost of $6k a year. Also I'm not even counting the $100k you have to invest first (down payment).
You will get a concrete box with nothing inside-no furniture, no floor, etc. That's how it is in China. I also live in Guangzhou, but personally, I rent rather than pay a mortgage for 30 years. A 50% down payment is 250k USD, which will bring you much more if you invest it (which I did). Those properties won't increase in price any time soon because of the economic situation in China right now.
First tier city property prices are still expensive even when compared to places like where I live in Vancouver. Personally, if I lived in GZ, I would look to buy properties in adjacent cities like Foshan or Shunde, where it's much cheaper, and still somewhat close to GZ. Foreigners can only own 1 residential property in China and you must reside in it.
If you have a Chinese spouse, your name can be on more than one property. If my name was the only one on the property, then yes, I could only have one. You also need to have a work visa and other documents before you can even think of buying a property. I'd say Guangzhou prices are similar to Vancouver and Toronto prices if you compare the size of the apartment and how old it is. You are 100% correct about adjacent cities being way cheaper but at the same time you gotta live where work is. I have friends who purchased property in Foshan and Dongguan and have lost over 400k rmb in value over the past few years so its risky. If you are using property as an investment and not just the place you live you are better off buying in Canada.
how much is it in US$ and i believe you only have it for 70 year lease and then you have to renew it? How much would it be to renew the lease once it expires?
Just under 500K. The lease depends on the type of property and can be less or more years. This property would be a 70-year lease. At the end of the lease, you usually start paying a yearly property tax, but in some cases, they are renewed.
No. The main reason is probably because people need to register where they are staying with the local police station. It might be something similar for the Chinese people, but not that I am aware of.
This is a rather speculative investment. It doesn't just feel like luxury. While not large, it is a luxury apartment in one of the most expensive places in the country of China. That square footage is more costly than a nice, upper-middle-class American suburb. Downtown real estate in America can fluctuate pretty wildly. The property market in China isn't exactly stable. You be the judge.
Great points. I wouldn't really call it an investment, as I don't expect the price to go up much. The main reason for buying would be to live in the apartment. The interest rates are very low, so instead of losing money to rent, the money just goes right back into the apartment. If I were to buy the property as an investment, I'd buy a place in Texas or back home in Canada, Vancouver, Toronto, the GTA or Calgary. The property market in Tier 1 cities is pretty stable, but the second you buy outside of Tier 1, it can fluctuate a lot.
Correct. Even the property you own needs to be registered with your work visa, so people on business visas or tourist visas can't purchase a property. If you want a property as a rental unit to make income, you would be a lot better off buying a property in Canada.
@collyslifeadventureinchina Thanks mate if I don't stay on the prime tiers like Peking but is the suburb how much would rental property cost and is RV a better choice if I want to travel around the country?
@@computerjoy Rentals outside of tier 1 and new tier 1 cities are extremely cheap, in my opinion. I've heard of people renting rooms for 800 RMB a month and people renting whole places for 1500-2000 RMB. To travel around it would be best to stay at cheap hostels. Technically, you need to register where you stay with the local police station, and you can't stay just anywhere without breaking your visa terms.
@@collyslifeadventureinchina i saw, just surprised you said 30kish USD annual is a salary for someone with 0 experience teaching english. i know salaries can get really high depending on the city but i would've guessed 30k USD annually to be pretty average, no?
@@agsdjklshadsabn 30k USD is the low end for a legit first-year teacher. you can live a decent life with that salary. After a few year's experience, you can make 50k USD a year and live a nice life. If you get a teaching degree and credentials or a specialty, you can make even more.
@@collyslifeadventureinchina 50k is nice but i wouldn't want to force myself to wake up and teach 9-5 for years of my life, maybe as a last resort if i run out of funds. i was just curious what an average and above average salary looks like so i can plan out my spending for the future. do you think in tier 2 cities (think capital cities like hangzhou, nanjing etc) 30k USD annually (1850 rmb monthly) would be mid instead of low? or are you only saying it's low in the first place because you're comparing it to teachers, who still earn more than most local careers? interesting convo lmk
@@agsdjklshadsabn Yes, in tier 2 cities, it would be mid, but you are really only saving money on rent when you go to lower tier cities. The cost of living in all other aspects is pretty much the same. If you live wisely you save more money in a tier one city. If you dont want to teach for a long period, places like Guangzhou, Yiwu, and Shenzhen give you so many opportunities to start your own business.
That font on the thumbnail, aka Chop Suey or Wonton font, is Orientalist (covered by outlets like Wall Street Journal, CNN, and so forth). It doesn't match the vibe that you'd want to go for.
Uh.. you did post that the property bought you don't "own" you don't really "own" property in China. The government owns all land and property.. you lease it for 70 years and have to relenquish it back. Once you get the property, tell me how it is after a year. You're mixing words here. Rent (you don't own) / Mortgage (you own)
You own the property, and you don't relinquish it back. Yes, you don't own the land, but you own the unit. after 70 years or 55 years, in some cases like lofts, you either pay a fee to lease the lot again or you start paying a property tax. In Canada, you pay property tax right off the rip on any property you own. The government will take a property back after the lease is up if they want to re-develop the area, but they almost always provide the unit owners with a new property in the new development. Sucks for sentimental value, but financially doesn't hurt the people. My wife has family members who are wealthy now because of development take backs. Yes there is the chance they will take the property as its written in law but it almost never happens. One of the reason China has things called nail houses.
its not like you have a choice, if they want your land, they take it whenever and then demo the whole property. Many people lost their property and had to relinquish it due to the government wanting to establish the "Green tech" such as fields of solar panels. It is pretty documented.
yes, check on people had to relinquish their property in china and had their whole property demolished regardless if they liked it or not and solar panels where built in their place. It is WELL documented.
Correct low interest rates, but the initial down payment can be a bit higher. once you have that, instead of wasting rent, the money goes back into your own property.
What a beautiful home to live in! Thank you for making this video.❤
The main issue with property investment in China is that its value primarily depends on appreciation. Buying a property to rent out isn't a smart financial move-that 82m² unit might only bring in $10,000 to $12,000 per year.
In contrast, here in Texas, a brand-new property worth half a million dollars can generate over $30,000 a year in rental income.
I would never buy a property to rent out in China. If i did so it would have to be in my wife's name as foreigners can't rent out properties. If i was to have a rental property, it would be in Canada. I am getting a second property to live in, and my current property is smaller. A family member would use our current property.
I made a mortgage calculation, if you purchase a half million home with 20% down ($100k) at 6.95% interest rate (current market), you will be paying about 3k a month including home insurance and property tax. On top of that, to make an extra $30k a year income, you will need to rent out $5.5k a month. Is Texas rent per month that high? or you mean only getting $30k a year, without calculating the mortgage? In that case, you will be at a lost of $6k a year. Also I'm not even counting the $100k you have to invest first (down payment).
He looks like a cool guy and his wife seems lovely. He’s done well for himself.
Thanks. Still have a lot I want to accomplish.
that 82m really is the cream of the crop, but 700k CAD? and you have to furnish it? sheeesh
insightful video though, thanks man
If we went one city over, it would be less than half that, but that's a nice area. Guangzhou prices for ya.
You will get a concrete box with nothing inside-no furniture, no floor, etc. That's how it is in China. I also live in Guangzhou, but personally, I rent rather than pay a mortgage for 30 years. A 50% down payment is 250k USD, which will bring you much more if you invest it (which I did). Those properties won't increase in price any time soon because of the economic situation in China right now.
First tier city property prices are still expensive even when compared to places like where I live in Vancouver. Personally, if I lived in GZ, I would look to buy properties in adjacent cities like Foshan or Shunde, where it's much cheaper, and still somewhat close to GZ. Foreigners can only own 1 residential property in China and you must reside in it.
If you have a Chinese spouse, your name can be on more than one property. If my name was the only one on the property, then yes, I could only have one. You also need to have a work visa and other documents before you can even think of buying a property. I'd say Guangzhou prices are similar to Vancouver and Toronto prices if you compare the size of the apartment and how old it is. You are 100% correct about adjacent cities being way cheaper but at the same time you gotta live where work is. I have friends who purchased property in Foshan and Dongguan and have lost over 400k rmb in value over the past few years so its risky. If you are using property as an investment and not just the place you live you are better off buying in Canada.
how much is it in US$ and i believe you only have it for 70 year lease and then you have to renew it? How much would it be to renew the lease once it expires?
Just under 500K. The lease depends on the type of property and can be less or more years. This property would be a 70-year lease. At the end of the lease, you usually start paying a yearly property tax, but in some cases, they are renewed.
I would like to see older properties!
When we start looking for new places, I will show them, but that will be a while from now.
When Are too going to make new kinbo market video
Maybe this week. I plan on going today.
Airbnb in china?
No. The main reason is probably because people need to register where they are staying with the local police station. It might be something similar for the Chinese people, but not that I am aware of.
Looks like a winning location, all the best buddy!
This is a rather speculative investment. It doesn't just feel like luxury. While not large, it is a luxury apartment in one of the most expensive places in the country of China.
That square footage is more costly than a nice, upper-middle-class American suburb. Downtown real estate in America can fluctuate pretty wildly. The property market in China isn't exactly stable. You be the judge.
Great points. I wouldn't really call it an investment, as I don't expect the price to go up much. The main reason for buying would be to live in the apartment. The interest rates are very low, so instead of losing money to rent, the money just goes right back into the apartment. If I were to buy the property as an investment, I'd buy a place in Texas or back home in Canada, Vancouver, Toronto, the GTA or Calgary. The property market in Tier 1 cities is pretty stable, but the second you buy outside of Tier 1, it can fluctuate a lot.
I saw as foreign can only buy one and not rent it out or earn money from the properties? Is this not correct?
Correct. Even the property you own needs to be registered with your work visa, so people on business visas or tourist visas can't purchase a property. If you want a property as a rental unit to make income, you would be a lot better off buying a property in Canada.
@collyslifeadventureinchina Thanks mate if I don't stay on the prime tiers like Peking but is the suburb how much would rental property cost and is RV a better choice if I want to travel around the country?
@@computerjoy Rentals outside of tier 1 and new tier 1 cities are extremely cheap, in my opinion. I've heard of people renting rooms for 800 RMB a month and people renting whole places for 1500-2000 RMB. To travel around it would be best to stay at cheap hostels. Technically, you need to register where you stay with the local police station, and you can't stay just anywhere without breaking your visa terms.
how much does the average person probably spend in GZ? 30k USD/220k RMB good enough for a single guy living an average life?
Do you mean yearly? Check out some of my cost of living videos.
@@collyslifeadventureinchina i saw, just surprised you said 30kish USD annual is a salary for someone with 0 experience teaching english. i know salaries can get really high depending on the city but i would've guessed 30k USD annually to be pretty average, no?
@@agsdjklshadsabn 30k USD is the low end for a legit first-year teacher. you can live a decent life with that salary. After a few year's experience, you can make 50k USD a year and live a nice life. If you get a teaching degree and credentials or a specialty, you can make even more.
@@collyslifeadventureinchina 50k is nice but i wouldn't want to force myself to wake up and teach 9-5 for years of my life, maybe as a last resort if i run out of funds. i was just curious what an average and above average salary looks like so i can plan out my spending for the future. do you think in tier 2 cities (think capital cities like hangzhou, nanjing etc) 30k USD annually (1850 rmb monthly) would be mid instead of low? or are you only saying it's low in the first place because you're comparing it to teachers, who still earn more than most local careers? interesting convo lmk
@@agsdjklshadsabn Yes, in tier 2 cities, it would be mid, but you are really only saving money on rent when you go to lower tier cities. The cost of living in all other aspects is pretty much the same. If you live wisely you save more money in a tier one city. If you dont want to teach for a long period, places like Guangzhou, Yiwu, and Shenzhen give you so many opportunities to start your own business.
That font on the thumbnail, aka Chop Suey or Wonton font, is Orientalist (covered by outlets like Wall Street Journal, CNN, and so forth). It doesn't match the vibe that you'd want to go for.
The font is Oriental, and my channel is about China...
That's crazy expensive
I mean, it is Guangzhou, and it is a brand-new property. It's not much different than getting a new place in Toronto. But yes, it's expensive.
Uh.. you did post that the property bought you don't "own" you don't really "own" property in China. The government owns all land and property.. you lease it for 70 years and have to relenquish it back. Once you get the property, tell me how it is after a year. You're mixing words here. Rent (you don't own) / Mortgage (you own)
You own the property, and you don't relinquish it back. Yes, you don't own the land, but you own the unit. after 70 years or 55 years, in some cases like lofts, you either pay a fee to lease the lot again or you start paying a property tax. In Canada, you pay property tax right off the rip on any property you own. The government will take a property back after the lease is up if they want to re-develop the area, but they almost always provide the unit owners with a new property in the new development. Sucks for sentimental value, but financially doesn't hurt the people. My wife has family members who are wealthy now because of development take backs. Yes there is the chance they will take the property as its written in law but it almost never happens. One of the reason China has things called nail houses.
Can you tell us ANY case about the owner relinquished their property in China? 😂😂😂
its not like you have a choice, if they want your land, they take it whenever and then demo the whole property. Many people lost their property and had to relinquish it due to the government wanting to establish the "Green tech" such as fields of solar panels. It is pretty documented.
yes, check on people had to relinquish their property in china and had their whole property demolished regardless if they liked it or not and solar panels where built in their place. It is WELL documented.
Actually you lease the land but own the building.
China has very low interest rates ! Be cheap to finance !
Correct low interest rates, but the initial down payment can be a bit higher. once you have that, instead of wasting rent, the money goes back into your own property.