Category Archives: Shanghai

Apartment Hunting in Shanghai

Before you start looking for an apartment anywhere, the first step it to set your budget.

I was also quite surprised to find that rents for newer (built after 2008) building are significantly higher than for buildings that are just slightly older. The reason, is due to the amount that the land lord paid when purchasing the apartment. For example, if the land lord paid 50,000 RMB/m²
2 because the unit was purchased after 2008, you can probably find a 2005 unit of identical location and near identical quality for about half the price, as the land lord would have only paid 25,000 RMB/m².

Obviously there is a status benefit, particularly important in China, associated with the higher rent location – but if you’re simply looking for a great location and a great value, you’re best of looking for someplace built between 2000-2005.

Next, DO NOT GIVE UP, DO NOT GET DISCOURAGED. Each time I’ve found an apartment that I really liked, I searched for two weeks, looking at 50 different apartment units, before finally settling on one that I like. No single agent will take you to so many places, but there’s an easy work around.

First, decide approximately which neighborhoods you would consider living in, probably something in proximity to your work, your social circle, or your preferred transit option, and then walk around on the neighboring streets looking for real estate agents. Agencies are local, and even though they can access their shared database throughout the city, they’ll often have the key to the units you want to see at an office near by.

These are the obvious things – what about not so obvious things.

1. HEAT SITUATION

Shanghai is extremely cold in the winter. If you haven’t lived here yet for an entire winter, you really have no idea how cold it gets. Most importantly, when you’re outside with heavy clothes the Shanghai winter is OK, but when you come home, stop moving and remove your down jacket, you’re in for a horrible surprise. Shanghai has high humidity, between the low temperature and the wind, it’s possible that you’ll never feel warm at home.

First thing, make sure that you’re apartment has THERMAL PANE (double pane) windows. I’ve found some amazing apartments with beautiful views, but rooms full of big, sliding, single pane windows provide approximately zero insulation value.

My advise, forgo the most breathtaking, all glass walls, in favor of more moderate window placement.

If you can find a place with either heated floors (地暖) or boilers/radiators (暖气), then you’ve hit the jackpot. These systems burn natural gas (煤气) so while they provide heat that doesn’t dry the air, they also will save you thousands of RMB/month if you leave the heat on.

2. TAX RECEIPT (发票)

Depending on your personal situation, you may or may not need a tax receipt. If you do not need one, expect to save about 5%, or conversely, if you do need one, expect to add 5%. For rental properties, there is no “standard” of whether or not a tax receipt is or is not included in the asking price. You need to inquire.

3. ASSOCIATION FEE (物业)

Under normal market terms, the association fee (物业费) is to be paid by the landlord, not by the tenant. If the land lord wants to fight about who is responsible for the association fee (物业) then you’ve probably found a real cheapskate and will probably run into other problems down the road.

Normally you will only be responsible for: Water, Electricity, Gas and Internet (水电煤及宽带).

4. WENZHOU PEOPLE (温州人)

Throughout Shanghai, a large percentage of the landlords are from Wenzhou. Almost all are absentee landlords and they generally take zero pride in maintaining a quality apartment, or providing a fair value. They are generally real estate speculators, and are generally horrible land lords. If anything breaks, do not expect your Wenzhou land lord to do a respectable job making repair.

On the other hand, land lords that have an overseas connection are generally fair and win-win oriented. The stronger that overseas connection, the better I’ve found it is to work with them.

Bottom line, if the land lord is from Wenzhou, a big minus. If they went to school overseas, a big plus.

5. WHY NOT THREE YEAR?

Whenever possible, I would recommend signing a three year contract. Inflation in China, particularly in Shanghai is out of control. Signing up for a longer contract is beneficial for the land lord, they know that the apartment is not at risk of sitting empty, but more importantly, it protects the tenant against annual rent increases. Use a longer term as negotiating leverage to get the lowest possible price, and lock in that price for as long a period as reasonable.

Moreover, if you know you’ll be in a unit for three years, it’s reasonable to make some improvements to the unit, without being concerned that you’re simply giving your land lord leverage to raise the rent a few months later.

For example, if you sign three years, and spend 20,000 RMB on repairs, that only works out equivalent to the land lord raising rent by 555 RMB/month.

You’ll also save paying out the AGENT FEE if you decide to move.

6. AGENT FEE (中介费)

Agencies try to hold off discussion of their fee for as long as possible. For the agency, their preferred arrangement is: landlord pays 1-month rent to agency as referral fee plus, tenant pays 1-month rent to agency as finders fee

I’ve even heard of cases where the tenant is to pay 2-months fee to the agency, but I would suggest you walk away immediately if your agent tries something like that.

The best case scenario is that the landlord + tenant combined pay 1-month of rent to the agency.

As the tenant, the lower you can negotiate the fee, obviously the better. Depending on your style, you may or may not want to negotiate it up front. If the agent that showed you a unit that you happen to really like seems to not be operating in your interest, and tries to charge you more than 50%-month worth of rent, then you may consider telling one of the other agents that you’ve been working with about the community/building/unit number, and they can look it up and broker it for you. This is a bit devious, so you should only resort to this sort of thing if your agent is simply doing the minimum amount of work possible and not working in your best interest.

It’s also important to understand exactly what the agency is responsible for delivering. There are a lot of lazy agents that simply pick a few nearby units that seem to be at the top of your price range (therefore maximizing their commission), take you for a quick look, and pressure you to sign the contract.

There are also excellent agents that will spend hours going through the listings databases plus their own network of contacts to find a unit that really matches what you’re looking for.

Some agents provide amazing after sales service. If there is a problem, you call them, rather than the landlord, and they will help you to resolve it. If there is some repair or customization that you would like to do, they’ll help find people to do it.

Finding a hard working, intelligent agent makes a big difference.

7. NOT FOR SALE

Sometimes an apartment gets sold right out from under a rental tenant. You should ask the rental agency if this apartment has ever been listed for sale before signing a contract. If the apartment was listed for sale, then the owner isn’t committed to holding onto the property and you are at high risk of having it sold out from under you.

The ideal situation is to have a clause written into the contract that IF the unit is sold: Damages (赔偿) some specifically defined amount of money should be paid out to you if the unit is sold Notice (通知) in addition to damages, you need to be notified at least X amount of time before sale

Best of luck trying to get the “no sale” clause added to the contract. Standard is about 30 days, and as long as the apartment hasn’t previously been listed the risk is low, but at least it gives you a bargaining chip to use with the land lord.

8. INTERNET: Slow or Slower?

Most apartment units in Shanghai only have 1MB or 2MB “broadband” connections, but some units quality for 10MB connections. If you use the internet extensively, it’s worth giving China Telecom (中国电信) a call at 10000 (一万) and asking which type of service is available in the unit that your considering.

9. Utility Bills

When handing over the keys, the land lord should give you the most current utility bills (water, electricity, and gas) and explain the current account situation. If the bills are not yet paid, then you can deduct that amount from your rent and pay it to the utility company. If the bills are over-paid, then your expected to pay the difference to the land lord.

10. Apartment Inventory

Normally all apartments in Shanghai come furnished, so the land lord will provide you with a printed sheet showing each of the items that they have provided (ie. tv, refrigerator, microwave, bed, etc), a bit like a physical inventory sheet for a warehouse. You’re responsible for making sure all of these items are retuned to the land lord when you leave, else it will be deducted from your deposit. If you want to get rid of any items in your apartment, make sure that your land lord has some location where they can be stored. Often times the land lord does not have any such location, so if you have a lot of possessions of your own to bring in, be careful to avoid apartments that are “over furnished”.

11. Payment Terms

Normally all apartments in China are “Pay Three, Deposit One” (付三押一) meaning that on day one, when you want to get the keys, you’ll need to bring cash for four months worth of rent, plus the fee payable to the agency. The agency fee could be as low as 25% of one month, and as high as 200% of one month. Also, the higher the monthly rent, it has a big impact on the actual amount of money that you need to turn over to get the keys.

12. Getting started

There are lots of websites that you can use to research possible apartments, but be advised that the “for rent” pages of these sites are full of bait-and-switch tactics, outright lies, and stale listings that have already been listed. Consider the risks when looking online, and once you zero in on a few areas that you like, just look for the actual real estate broker offices in that area.

Websites that you can use to get started include:

There are also english language oriented services, but I would avoid these unless your not concerned about paying a premium price for an agency fee.

Considering the difficulty of parking in the city and driving around rush hour, I recommend forgoing the automobile all together and simply finding a location with great subway access. By great, I mean less than 2 minutes walk to the station, which is less than the normal walk to find the parking structure. If you take this approach, a few stations that you might start focusing your search around are:

  • Line 1 – Xinzha Rd (新闸路站)
  • Line 8 – Laoximen (老西门站)
  • Line 9 – Xiaonanmen (小南门站)
  • Line 9 – Madang Rd (马当路站)
  • Line 10 – Xintiandi (新天地站)
  • Line 10 – South Shaanxi Rd (陕西南路站)

Of courses there are many many places to choose from, but these are a few of the more centrally located places that still have very good subway access to nearby communities.

Google Maps in China: FIXED! (iPhone/iPad)

Google Maps works great in Beijing, but it has never worked accurately in Shanghai or many other parts of China. Countless requests to Google and Apple to fix the problem go unanswered, so we’re forced to take matters into our own hands.

You’ll need to Jailbreak your iOS device (which is completely legal), thereby installing Cydia.

Once you’ve got Cydia installed, open Cydia and choose “Manage” from the bottom menu, then choose “Sources”. Click the “Edit” button on the top right and then click the “Add” button on the top left. In the dialog box that comes up, enter the following address:

http://apt.mirrordev.com
google-map-cydia-add.jpg

Click the “Add Source” button to continue, Cydia will verify the URL, then download a list of packages. Once that’s complete just press “Return to Cydia”, and on the top right of the Cydia window click “Done”.

Now, click on “MirrorDev” in your list of Sources, and choose “Location Fixed” from the list. Click the “Install” button on the top right.

google-map-cydia-location-fixed.jpg

After “Location Fixed” is installed, you’ll see a new entry in your Settings screen called “中国区地图校正” (China Map Correction”) that has two settings:

启动 (Activate) [On/Off]

联通版本(China Unicom Version) [On/Off]

Thanks to the developers at MirrorDev for doing what Apple and Google have consistently failed to do. Better yet, check out MirrorDev’s post about the Google Map Fix.

google-map-settings.jpg

订车电话-Good Luck

If you need to get to some horrible airport that doesn’t even have a subway connection – well my first thought is good luck. But sometimes you have no choice in the matter. Well, keep in mind that Taxi slots start booking on Saturday morning! So as soon as you’ve got your airline tickets booked, you should call 大众 (dazhong) or 海波 (haibo) to reserve a ride to the airport.

If you’ve got to have a taxi waiting for you at 8:00 AM, and you’re reserving the night before – well don’t bother.

大众: 96822(dazhong)
海波: 96933 (haibo)
巴士: 96840 (bashi)
锦江: 96961 (jinjiang)
强生: 6258 0000 (qiangsheng)
上海市出租车统一电话调号码 96965 (meta-number)

看朋友,然后到热带风暴去

这个星期六我要到热带风暴去。我记得前年我到了热带风暴时发现前一天关门了,季节结束了。真倒霉。今年应该想办法4次左右到了热带风暴去。
地址:上海市闵行区新镇路78号
网站:www.dinobeach.com.cn

我朋友那里到了热带风暴路线。。。

先,我要乘地铁一号线到了莘庄附近。
离朋友家一点是:“锦江乐园站”
离热带风暴比较直接路线是:“莘庄站”

中间也有两个站可能也行:“莲花路站”和“外环路站”


View Larger Map

Dialing Int’l Calls from Shanghai ~ 0.4元/分钟

no_skype-1.png

Call direct from your mobile phone. No calling card. Only 2x the price of Skype In, but better quality and you can call out!

在上海,申请中国移动的国际长途就发“3211”到10086。这样可以申请国际IP长途服务,每次拨国际电话号码,先拨:12593+00+国际电话号码,比如:

拨美国的“+1-206-555-1212”,变成:
12593-00-1-206-555-1212

Give China Mobile a call and Sign-up for IP Int’l Long Distance. Just send an SMS containing only “3211” to 10086. Each time you want to dial an Int’l number, just add: 1259-00, then the country code and the number.

如果你忘记你的密码,就发密码查询的拼音到10086,那就是:MMCX

If you forget your password, just send MMCX to 10086

如果要查你的账户还有多少钱,发“余额查询”的拼音到10086,那就是:YECX

If you need you current account balance, send YECX to 10086

China Mobile call to the USA for 30¢/minute

china_mobile_logo.jpg

If you’re a China Mobile user, you may or may not be aware that you can get inexpensive international long distance (国际长途)by dialing 17951+00 then the country code and number you want to reach. You can actual save the full number in your address book (not like using a calling card) for the people you call most frequently and make the habit of saving a lot. Note that you don’t want to save this as the primary number in your address book, else you won’t be able to send text messages.

That is 2.2元/minute (See complete IP talk Rate Chart), compare this to the direct dial price of 0.8元/6 seconds – or 8.0元/minute, it’s a savings of almost 80%. At the currently miserable USD exchange rate, using “IP Phone” from China Mobile is just over USD 30¢/minute.

If you check the Skype Rate Chart, calling to a China Mobile phone is only 2.4¢/minute, so Skype In is still by far the cheapest way to talk to someone on your mobile for a long conversation. Here’s China Mobile’s post about Int’l Long Distance

国际长途
您打给国外朋友的长途电话
使用方式
1、确认您的手机号码已经开通国际长途功能;
2、您可以直接拨打:
00+国家或地区代码+城市代码+对方号码
或00+国家或地区代码+对方手机号码
3、也可以加拨17951进行IP通话:
17951+00+国家或地区代码+城市代码+对方号码
17951+00+国家或地区代码+对方手机号码
标准资费
1、至世界各地0.80元/6秒,采用分时段及国家法定节假日资费优惠的办法;
2、加拨17951具体资费以当地移动公司公布为准
特别提醒 
目前国际长途可通达世界上280多个国家和地区。
具体开通情况,请以当地移动公司公布为准。

Details at Baidu “Know” (chinese) on a variety of Int’l calling options.

The Octopus is Alive…

Interesting eating choices around Shanghai…


Live shrimp: Yue Lai Jiu Jia
Price: ¥25.
Availability: They’re open 24 hours, but if you’re coming just for this, it’s best to come in the early evening, as they sell out later on.
81 Huanghe Lu, near Fengyang Lu, 6327 1026
黄河路81号, 近奉贤路


Live fish: Spring Summer Autumn Winter
Price: Market price, depending on variety of fish. As a rough guide, expect to pay ¥150-200 per fish.
Availability: As long as there are fish in the tank.
3/F, Minfang Department Store, 593 Fuxing Lu, near Ruijin Lu, 2402 8111
复兴路593号民防大厦, 近瑞金路.


Live octopus: He Lin
Price: ¥15 per octopus.
Availability: November to February is the high season for eating octopus, and during that time you’ll need to call in advance to reserve.
232 Ziteng Lu, near Qingshan Lu, 3431 3930
紫藤路232号, 近青杉路.


More at SH the Shanghai Magazine…

Also, here are some great Youtube videos of Squid eating…











What a difference a year makes… No Valentines day!

You may or may not remember my post last year about Shanghai being the new Paris – Three Valentines Day’s in a single year!

Well, I’ve got to visit LA over the next week and I’ll be flying back to Shanghai on the 13th. I’ll actually arrive in Shanghai on the 14th at about 9:00 PM (about 6:00 am Valentines Day back in LA). Assuming that the flight isn’t late and customs is fast, that should get me home about 11:00 PM on Valentines Day — so I shouldn’t say “No Valentines Day”, but only for about an hour…

I guess it’s an opportunity — all of the flight attendants on All Nipon should be in unusual mood ~ I’ll be practicing my Japanese 😉

こんにちは。私はライアン!

For anybody with a cold who needs cheering up….

As you’re sitting there sick, imagine how hilarious it was when I lost my voice and went to the hospital to check it out. Of course I couldn’t talk so everybody thinks “this dumb foreigner has no clue what’s going on — let’s send him to the foreigner hospital ASAP” – and of course I’m way too chinese to pay 2 times the price for the same service, only spoken in really bad english that I can’t understand anyway… So I used my mobile phone to just type in chinese what I need to tell them – which of course they think a chinese friend sent to me and try to send me away… Finally in chinese I type: “You damn idiot ~ my voice is gone ~ I need to see the doctor!” Of course, I had to repeat this process 12 times at each level of hospital bureaucracy to actually see a Doc.

Jim Rogers in Shanghai Again…

I was extremely pleased to get another chance to meet Jim Rogers, though this time only at a brief speech ~ not really any time to chat. This was the first time I’ve seen Jim speak in public and I thought he did an excellent job! There are a few speaking notes that I think anyone can take away:

Humanize it – Turn it into a story. If we were looking for only the cold, dry facts, we could scan through the 10Ks ourselves, but few financial reports are truly memorable – we remember stories!

Repeat It – Jim would say the same thing over and over and over. He would say it 10 different ways. He might have 1000 other peals of wisdom that quickly get thrown out, and a few will appeal to different sections of the audience, but the core of what you are trying to persuade MUST BE REPEATED – use the same words, and then use different words, but repeat it.

Slowly. Speaking, like art is not a race. The whitespace in an Ad, the open space in a courtyard, and the silent pauses while you are speaking are all equally important. Do not talk to fast!

Additionally, there were 3 questions that I was particularly interested in, and Jim was able to answer them for me quite quickly.

1. Doesn’t the fact that the US Federal Debit is denominated in US Dollars make the actual $9 Trillion dollar figure much less important that it appears to be? Not to quote Jim response, but basically, there will come a time when other countries are no longer willing to continue financing the US debit. As that happens, interest rates in the USA will rise – potentially quite high. Jim did not mention this, but I would expect that one day we’ll see other nations demanding that US treasuries are denominated in a basket of currencies, rather than dollar debt backed by yet more dollars…

2. The British Pound once served as the global reserve currency. How did this change and what was the process like? There was a long period of recession in the UK, making it a miserable place to live. This period was not short, and caused extensive changes throughout the UK economy. Again, I’m just paraphrasing an answer, but this topic is now the single economic topic that I’m most interested in… What happened to the Pound Sterling?

3. Do you worry about China’s centrally (mis)-managed investment in Gas Stations where there are no cars stopping for Gas (every 1km in Xinjiang, every station empty), empty airports in Zhuhai (16 terminals, but 2 FLIGHTS DAILY – TOTAL) and empty high rises all over the country? Jim partially answered by saying that he would NOT be in China’s real-estate market, particularly in any of the “Tier-1 Cities” – Prices are all hyper-inflated and due for a large correction. Shanghai is probably number one in that group… As for the empty capacity – well, at least it’s better than just the excess consumption in the USA – at least they do have a gas station to show for it, rather than just another empty Starbucks cup in a landfill…

My good friend Wu Yi (who I met the day I first met Jim Rogers in Shanghai) also came with me Saturday morning for Jim’s speech 🙂

ErwinErwin_and_Jim_Rogers_Shanghai_2nd_time.JPG

(BTW: Pic came out badly…. But was in a hurry and I’m not a suit guy to begin with…)