So you’ve got a great job offer in China? Way to go! But can you afford it? More specifically, can you afford the large up-front expenses that many foreigners face when they are required to arrange their own housing. That usually doesn’t apply to school teachers living on campus or to many big executives living in palaces (expensive villas), but for many of us, the company or institution we work for requires us to find our own housing (though they may provide a hotel for a couple of weeks to give you time to find a place to rent). Renting an apartment involves enormous expenses. Are you ready?
Rent in China’s large cities is quite high. A small place may still cost you $1,000 a month (6800 RMB) but it can easily be $3,000 a month if it’s in a nice location with, say, three bedrooms. Even if your company reimburses you for rent or for part of your rent, the process of renting involves large up-front costs that you need to pay. Rental agreements usually require a deposit of two months of rent, plus paying up front for your first three months of rent, and then paying 35% of one month as a fee to the real estate agent. You can be broke before you ever move in if you aren’t prepared. Get details and make sure you know what your company will cover and what they won’t.
You may be able to negotiate a reduced deposit of just one month, but even if you do, you need to have a wad of cash of enough funds in your Chinese bank to pay 43,500 RMB for a 10,000/month apartment. That’s over $6,000. Your credit cards won’t be accepted.
Know what you’re up against before you come!
