A comparative introduction to the differences in home buying between China and the United States

#AmericanImmigration# Introduction Many people will choose to immigrate to the United States, so what are the differences between buying a house in the United States and buying a house in China? This is a question that many people are concerned about. Let’s take a look at the differences between buying a house in China and the United States. Comparative introduction, welcome to read.

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 is 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 cities and villages. Each area has its own set of systems, including shops, restaurants, hospitals, and schools, which provide a large degree of convenience to the people who live there. Convenience.

2. Real estate-related systems: While the U.S. system is sound, China still needs to improve it

In the United States, there are many third-party assistance agencies when buying and selling real estate, including appraisal companies and home inspections. , notary companies, banks, broker systems, title insurance companies, etc. Each institution plays its own role in the buying and selling process to ensure that every link of the buying and selling process is perfect. Enable the real estate industry to develop fairly, transparently, healthily and vigorously

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-style private property system, the sale and purchase of houses includes land. In other words, when you buy a house, you also Bought the land on which to build the house. 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 imposes strict taxes on holdings, while China has high taxes on transactions.

In the United States, as long as you own a house, you have to pay real estate tax. The United States usually It is 1-3%. Each state 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. Real estate system: The United States has an official real estate sharing system, but China’s real estate information is still opaque

There is an essential difference between the real estate industries in the United States and China. , which is their housing system. 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 real estate sharing system called MLS. Every reporter transmits the real estate information to this system. All listed houses are very transparent in this system and can be seen 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, the seller pays it, but 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, and the owner entrusts a broker to sell it. When purchasing a house, a contract is signed, and 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.