The top ten differences between China and the United States in real estate

The top ten differences between China and the United States in real estate 2018-01-26 The light of political perspective The top ten differences in Chinese and American real estate: 1. City...

The top ten differences in Chinese and American real estate 2018-01-26 The light of political perspective The top ten differences in Chinese and American real estate: 1. The difference between urban and rural areas: The gap between urban and rural areas in China is still relatively large, but it is not obvious between urban and rural areas in the United States. In China, if you live in a city or a country, it's obviously completely different. A city is a relatively concentrated place of commerce, with all institutions in it. The economic conditions are much better than those in rural areas, and daily necessities of life, food, clothing, housing and transportation will be much more convenient. Rural areas are much further behind. In the United States, whether in New York or Los Angeles, there is no absolute distinction between city and country. Each region has its own system of shops, restaurants, hospitals, and schools, which provide a great degree of convenience to the people who live there.

2. Real estate-related systems: The United States has a sound system and China still needs to improve it. In the United States, there are many third-party assistance agencies when buying and selling real estate, including valuation companies, house inspections, notary companies, banks, brokerage systems, title insurance companies, etc. Each institution plays its own role in the buying and selling process to ensure that every aspect of the buying and selling process is perfect. Enable the real estate industry to be fair, transparent, healthy and prosperous. China's real estate industry has just started in recent years and is still not perfect. There are many problems in both the intermediary system and the buying and selling process. The government's macro-control measures at different times are unpredictable and confusing. Speculation in real estate as a whole far exceeds actual demand for real estate.

3. Nature of property rights: Chinese residential property rights have the right to use American permanent property rights. In the American private property system, the sale of houses includes land. In other words, when you buy a house, you also buy the land on which the house is built. Moreover, the property rights in the United States are permanent, while the residential property rights in China have a term of 70 years, and the term of general commercial real estate is only 50 years.

4. Real estate tax: The United States has strict tax collection during the holding phase. China has high taxes and fees during the transaction phase. In the United States, as long as you own a house, you have to pay real estate tax. The United States is usually 1-3%. Each continent has its own different standards. California is probably between 1.2-2.0%. Therefore, after you buy a house, you have to pay property taxes every year, which becomes the carrying cost of owning the property. In order to curb the vacancy of empty houses, China began to experiment with real estate taxes in several major cities.

5. Housing system: The United States has an official housing sharing system. Real estate information in China is not yet transparent. There is an essential difference between the real estate industries in the United States and China, which is their housing systems. There is no unified housing supply in China. Each real estate company only sells the houses it has bought, or exchanges housing listings with a small number of well-connected peers. In the United States, there is a house listing sharing system called MLS. Every reporter transmits house listing information to this system. All listed houses are very transparent and clear at a glance. I can take my client to find a house that he is happy with, and it doesn't have to be the house that I'm selling. The same goes for other agents, who can bring their clients to buy the houses I sell. There is mutual benefit and reciprocity, and the number of things harboring dirt and evil is relatively reduced. The entire real estate market is booming as a result.

6. Commission payment methods are different: in the United States, it is paid by the seller. In China, it is mostly paid by the buyer. When buying and selling real estate in the United States, the commission is always borne by the seller. When the homeowner entrusts a broker to sell the house, he or she signs a contract. The commission is generally around 6%. When a buyer is led by another agent to buy a house, the seller's agent must pay half of the commission to the buyer's agent. The reason why the United States stipulates that the seller pays the commissions of both brokers is mainly because in the buying and selling process, the seller is the party who obtains the money, and the buyer is the party who pays. In China it is just the opposite, the buyer pays the commission.

7. The concept of house is different: most houses bought in China are apartments, while most houses bought in the United States are independent houses. In China, buying a house refers to buying an apartment. In the United States, buying a house generally refers to a second-hand house or a detached house. What needs to be emphasized here is that independent houses in the United States are not what the Chinese call villas. Although some detached houses look similar to villas in appearance, there are also houses in the United States that are very old and need to be repaired. It seems inappropriate to call these detached houses villas. The same detached house can be a mansion worth tens of millions of dollars, or a shabby house worth thirty or fifty thousand dollars. In addition to detached houses in the United States, there is also a type of house called a condo, or townhouse, which is a house with two or more units connected to the wall and can also be called a row house. This type of townhouse is worth much less than a detached house because it occupies a much smaller area of ​​land than a detached house. Of course, it also depends on where the house is located and the level of the city. What we mean here by comparison is that townhouses are cheaper than detached houses in the same area. The value of a home in the United States depends on two items, the land and the building. Buildings become cheaper as they age, while land increases in value based on development and environmental changes in the area. 8. Mortgage policies are different: fixed interest rates are available in the United States, but floating interest rates are mostly available in China. When buying a house in the United States, most loans have a fixed interest rate of fifteen or thirty years. Loans in the United States also have floating interest rates, but few people use them because the lender has to bear the risk of rising interest rates. No matter how you borrow money in the United States, you can refinance or pay it off in full before the loan expires. Unless the house price depreciates and your house price cannot repay the bank loan, you need to make up the difference, and the bank will not allow you to refinance. Loans in China adopt floating interest rates. According to market changes, home buyers need to bear the risk of interest rate changes. I don't know much about China's loan market, but I haven't heard any news yet about which home buyers can refinance. I'm afraid it's because of the floating interest rate, so there's no need to refinance. Another interesting question is that in the United States it is called a loan, but in China it is called a mortgage. In addition, there is no "limited loan" policy for home loans in the United States, but the down payment ratio for foreigners to purchase a house with a loan is relatively high, some requiring up to 50%, while the down payment ratio for domestic citizens is generally 20%.

9. The interest on buying a house in the United States can be deducted from your personal income tax. After buying a house in the United States, the loan interest you pay can be deducted from your personal income tax. This is a preferential policy provided by the government to encourage people to buy their own houses. The tax in the United States is relatively heavy. If you have an annual salary of 50,000 yuan, buy a house worth about 400,000 yuan, and take a loan of 300,000 yuan, you will have to pay about 1,800 yuan per month. The interest rate averages 1,500 yuan, which is 18,000 yuan a year. When you file your tax return at the end of the year, deduct the interest of 18,000 yuan, and your tax base will be reduced to 32,000 yuan, which saves a lot. 10. Different scales are used to calculate the area of ​​a house. In the United States, square feet are used to calculate the area of ​​a house, while in China, the metric system is square meters, where 1 square meter is equal to 10.764 square feet.