Is there anyplace i can compare standard rates at the different banks? Or anybody know what would be 'reasonable' rate for a 'average' homebuyer? Thanks in advance!

I would NEVER purchase a house unless I could pay cash here in China. Going through a bank is ripoff, especially for foreigners. Not to metion the many hoops you must jump through.

I would agree with that. Renting is cheaper, affords more choice, and provides flexibility. But im interested in the cost of money.

..

Agree also on the "Don't buy, renting is better in this market" line of thinking. Real estate security here is illusory anyway.

Even if you have a sweet place, great management, good price ... it could fall apart in 10 years, get knocked down by the government (or worse: everything around it does, and it doesn't), be next to a new huge construction project every year (meaning constant dust and noise), etc. That's not even mentioning the standard new-build apartment complex scenario where people moving in provide guaranteed renovation noise for the first 2-3 years. Then there's the 70 year dealio where the government wants you to pay again. Weird illegal shit that happens with utilities where they sell you as a monopolized market to a certain telecom company who refuse to provide the service you need. Water mains that just stop working for a week or more. You name it, I've seen it here.

With all the fundamental unknowns ... not all of which we can openly discuss ... renting just makes far more sense.

Check out prices for luxury apartments in Thailand if you must have your name on something .. they're far better and cheaper than Kunming.

I believe the interest rate on a 20 year mortgage is between 5-6%. I doubt this would vary from bank to bank. The bank also reserves the right to adjust your interest rate once a year (I would guess according to the current bank lending rate).

The 70-year lease isn't such a big deal, as you pay no annual property tax. However, this system may be reformed in the next 5-10 years.

.

If you are planning to stay here long term then buying is the way to go. Renting is a bitch when the 'landlord' decides they want you out or raises the rent at will. Moving is a pain.

buy at the top of th emarket with prices going down. not unless i have too

You guys are missing the point. He seems to want to know what it costs Chinese to borrow money.

Anyway, the information is readily available if you are able to search in Chinese. Search for [Name of Bank]贷款利率

I just checked CMB (www.cmbchina.com/cmbwebpubinfo/cdrate.aspx?chnl=cdrate), which has rates from 4.85%-5.4% depending on the term of the loan. They also have a loan calculator: www.cmbchina.com/CmbWebPubInfo/Cal_Loan_Per.aspx

Bank of China (www.bankofchina.com/fimarkets/lilv/) seems to have the same rates.

You can do the rest on your own with my search formula above.