Real estate differences between China and the United States.
1. Urban-rural gap: The urban-rural gap in China is still relatively large, but it is not obvious in the United States.
If you live in a city or a country in China, it is obviously very different. Cities are places where businesses are relatively concentrated, and all institutions are in them. The economic conditions are much better than those in the countryside, and the usual food, clothing, housing and transportation will be much more convenient. Rural areas are far behind. In American words, there is no absolute city or country in new york or Los Angeles. Every region will have its own system, including shops, restaurants, hospitals and schools, which provides great convenience for residents.
2. Real estate-related system: The system in the United States is sound, but China still needs to improve it.
In buying and selling real estate in the United States, there will be many third-party assistance agencies, including appraisal companies, housing inspection companies, notary companies, banks, brokerage systems, property insurance companies and so on. Each institution plays its own role in the process of buying and selling, ensuring that every link of the buying and selling process is perfect. So that the real estate industry is fair, transparent, healthy and vigorous.
The real estate industry in China has just started in recent years and is not perfect. There are many problems in both the intermediary system and the buying and selling process. The government's macro-control in different periods is unpredictable, which makes people at a loss. The hype of the whole real estate far exceeds the actual demand of real estate.
3. Nature of property rights: China has the right to use residential property rights, and the United States has permanent property rights.
American-style private property system, the sale of houses includes land, that is to say, when you buy a house, you also buy land to build a house. Moreover, in the United States, property rights are permanent, while in China, the term of residential property rights is 70 years, and the term of general commercial real estate is only 50 years.
4. Property tax: The United States imposes strict taxes on holding links, while China imposes high taxes on trading links.
In the United States, as long as you own a house, you have to pay real estate tax, which is usually 1-3% in the United States. Each state has its own different standards, and California is probably between 1.2-2.0%. So after you buy a house, you have to pay the property tax every year, which becomes the holding cost of the property you own. In order to curb vacant houses, China began to levy real estate taxes in several major cities.
5. Housing system: The United States has an official housing system, but the real estate information in China is still opaque.
In the real estate industry of the United States and China, there is an essential difference, that is, their housing system. There is no unified housing in China, and real estate companies only sell their own houses, or a small number of related peers exchange housing. In the United States, there is a house sharing system MLS, and every Gigi person transmits the house information to this system. All listed houses in this system are very transparent and clear at a glance. I can take the guest to find a house that he is satisfied with, and this house may not be sold by me. The same is true for other brokers, who can bring guests to buy the house I sell. Mutual benefit and reciprocity, the number of things that shelter evil people and shelter evil practices is relatively reduced. Therefore, the whole real estate market is booming.
6. There are different ways to pay the commission: in the United States, the seller pays, and in China, the buyer pays.
When buying and selling real estate in the United States, the commission is borne by the seller. When the owner entrusts a broker to sell the house, he enters into a contract, and the commission is generally around 6%. When the buyer is led by another broker to buy a house, the seller's broker needs to give the buyer's broker half the commission. Why does the United States stipulate that the seller should pay the commission of both brokers, mainly because in the process of buying and selling, it is the seller who gets the money and the buyer who pays. In China, on the contrary, the buyer pays the commission.
7. The concept of house is different: most houses in China are apartments, while most houses in the United States are detached houses.
In China, buying a house means buying an apartment. In the United States, buying a house generally refers to second-hand houses and independent houses. What needs to be emphasized here is that detached houses in the United States are not what China people call villas. Although some detached houses are similar to villas in appearance, there are also very old houses in the United States that need maintenance. It seems inappropriate to call these detached houses villas. It is also an independent house, which can be tens of millions of luxury houses or 30,000 to 50,000 broken houses. In the United States, in addition to detached houses, there is another kind of house called Kangdu, or city house, which is a house where more than two houses are connected together, which can also be called townhouse. The value of this townhouse is much lower than that of detached house, because it occupies much smaller land area than detached house. Of course, it depends on the location of the house and the level of the city. By comparison, we mean that townhouses are cheaper than detached houses, that is, in the same area. In America, the value of a house depends on two things, land and architecture. Buildings will become cheaper and cheaper over time, and land will increase in value according to regional development and environmental changes.
8. Different mortgage policies: The optional fixed interest rate in the United States is mostly floating interest rate in China.
In the United States, loans to buy a house are mostly fifteen or thirty years, with fixed interest rates. Loans in the United States also have floating interest rates, but few people use them because lenders themselves have to bear the risk of rising interest rates. In the United States, no matter how you borrow money, you can refinance it or pay it off in full before the loan expires. Unless the house price depreciates, your house price cannot repay the bank loan. If you need to make up the difference, the bank will not allow you to refinance. In China, floating interest rates are used for loans. According to the changes in the market, buyers have to bear the risk of interest rate changes. I don't know much about the loan market in China, but I haven't heard the news that any property buyers can refinance. I'm afraid it's because of the floating interest rate, so there is no need to borrow again.
Another interesting question is that in the United States this is called a loan, while in China it is called a mortgage. In addition, there is no "loan restriction" policy for housing loans in the United States, but the down payment ratio of foreign loans to buy a house is relatively high, some of which require 50%, while the down payment ratio of domestic citizens is generally required to be 20%.
9. Interest on buying a house in the United States can be tax deductible.
After buying a house in the United States, the loan interest you pay can be deducted from the personal income tax. This is a preferential policy for the government to encourage people to buy houses. Taxes in the United States are relatively heavy. If you earn an annual salary of 50,000 yuan, buy a house worth about 400,000 yuan, and take out a loan of 300,000 yuan, and pay back about 1800 yuan a month, in which the average interest is 1500 yuan, which is 1.8 million yuan a year. When you file your tax returns at the end of the year, after deducting the interest of18,000 yuan, your tax return base will be reduced to 32,000 yuan, which saves a lot.
10, the scale of calculating housing area is different.
The United States uses square feet to calculate the area of a house, and China uses metric square meters. 1 square meter is equal to 10.764 square foot.
The above is the difference between Chinese and American real estate that I have carefully sorted out. I hope I can help you.