SheLikesME? Posted July 16, 2008 Report Share Posted July 16, 2008 (edited) Wife was telling me today that no homes are selling. Everyone believes the prices will fall after the Olympics so they are holding on to their cash. Her place supposedly went up from $70 to $100K US in value in just a year. Her brother will be in Beijing, sent there by his company, for 2 months to help and make sure the electricity stays on during the games. Most of my wifes family works for one electric supply company or another. I find this fascinating how much attention the govt is giving to ensure everything will run smoothly. Anyway brother is available to try to handle the sale of her house, if it happens. I still wonder about her plans for the cash once sold. So far her track record on investments is loosing everything. Thus I would like for her to get it tied up in a house over here or not sell the place at all. But she doesn't want renters to destroy her house. PS: It is so hard to resist posting something indecent in Rogies Kigdumb to get it moved to the TC. Edited July 16, 2008 by SheLikesME? (see edit history) Link to comment
GZBILL Posted July 16, 2008 Report Share Posted July 16, 2008 Wife was telling me today that no homes are selling. Everyone believes the prices will fall after the opympics so they are holding on to their cash. It depends on the district. Houses in the Chaoyang District are still hot and prices are not dropping at all. Link to comment
SheLikesME? Posted July 16, 2008 Author Report Share Posted July 16, 2008 Wife was telling me today that no homes are selling. Everyone believes the prices will fall after the opympics so they are holding on to their cash. It depends on the district. Houses in the Chaoyang District are still hot and prices are not dropping at all.It is in what I call the University district or area. Link to comment
ken88 Posted July 16, 2008 Report Share Posted July 16, 2008 Wife was telling me today that no homes are selling. Everyone believes the prices will fall after the Olympics so they are holding on to their cash. Her place supposedly went up from $70 to $100K US in value in just a year. Her brother will be in Beijing, sent there by his company, for 2 months to help and make sure the electricity stays on during the games. Most of my wifes family works for one electric supply company or another. I find this fascinating how much attention the govt is giving to ensure everything will run smoothly. Anyway brother is available to try to handle the sale of her house, if it happens. If you buy house in China and sell it within 5 years, would the government take away your profit ? I heard that it happens in certain cities, but I was wondering if it is true throughout China? Ken88 I still wonder about her plans for the cash once sold. So far her track record on investments is loosing everything. Thus I would like for her to get it tied up in a house over here or not sell the place at all. But she doesn't want renters to destroy her house. PS: It is so hard to resist posting something indecent in Rogies Kigdumb to get it moved to the TC. Link to comment
ken88 Posted July 16, 2008 Report Share Posted July 16, 2008 Wife was telling me today that no homes are selling. Everyone believes the prices will fall after the opympics so they are holding on to their cash. It depends on the district. Houses in the Chaoyang District are still hot and prices are not dropping at all. Do you expect a burst of the housing bubble in china, as it happened in the US? Ken88 Link to comment
rogerluli Posted July 16, 2008 Report Share Posted July 16, 2008 PS: It is so hard to resist posting something indecent in Rogies Kigdumb to get it moved to the TC. Resisting temptation will make you a better man Dougie... Link to comment
GZBILL Posted July 16, 2008 Report Share Posted July 16, 2008 Wife was telling me today that no homes are selling. Everyone believes the prices will fall after the opympics so they are holding on to their cash. It depends on the district. Houses in the Chaoyang District are still hot and prices are not dropping at all. Do you expect a burst of the housing bubble in china, as it happened in the US? Ken88 Tough to say. I do think prices are too high and not sustainable for the most part, but a lot depends on location. In Haidian District (Beijing), perhaps prices can drop. Not in Chaoyang District. If prices do go down, I do not think it will be on the same magnitude as in the US. Whereas in the US houses can be bought with 0% down, in China it's impossible. Minimum now is 30% -- 40% if your second house. Link to comment
rogerluli Posted July 16, 2008 Report Share Posted July 16, 2008 Minimum now is 30% -- 40% if your second house. Bill I'm assuming this is if the first house has a mortgage on it also??? Link to comment
Joshua + Wang Zhuo Posted July 16, 2008 Report Share Posted July 16, 2008 I have often wondered about the housing market here in China as well......It seems to me that the prices for homes here in Tianjin are way more than they should be. A 100 m2 Apartment sells for about 100-130k US. When you look at how much people make it seems impossible. My thought though is that the one child rule is to blame. (This is just theory) I think that when people get married here families often come together to buy a home for the children. If each family had 2 children instead of one, the amount that the could contribute would be cut in half. The demand for housing continues to rise because of the number of people that are moving to the cities from the country. Coupled with the fact that Chinese people are much better at saving than Americans helps drive the housing market higher all the time. Will the olympics cause the market to bubble? I guess we will know soon. Link to comment
Joshua + Wang Zhuo Posted July 16, 2008 Report Share Posted July 16, 2008 Minimum now is 30% -- 40% if your second house. Bill I'm assuming this is if the first house has a mortgage on it also??? Usually by second house it just means that you are not living in it. Down payments are almost always required to be higher on a house you are not going to live in......I guess it is because people are more likely to default if they are not worried about losing the roof over their heads. Really doesn't make a difference if there is a mortgage on the first house or not. Link to comment
rogerluli Posted July 16, 2008 Report Share Posted July 16, 2008 http://news.bbc.co.uk/2/hi/asia-pacific/7509614.stm And in other Beijing house news... "In Beijing you can't even buy a place the size of a toilet for that"... Link to comment
rogerluli Posted July 16, 2008 Report Share Posted July 16, 2008 Minimum now is 30% -- 40% if your second house. Bill I'm assuming this is if the first house has a mortgage on it also??? Usually by second house it just means that you are not living in it. Down payments are almost always required to be higher on a house you are not going to live in......I guess it is because people are more likely to default if they are not worried about losing the roof over their heads. Really doesn't make a difference if there is a mortgage on the first house or not. But if you are buying a house in a different city and using a different bank... I doubt that China has anything like the US credit bureaus that know every financial detail of our lives... Link to comment
rogerluli Posted July 18, 2008 Report Share Posted July 18, 2008 I am informed that house prices have seen their greatest plunge in... SHENZHEN... Some owners there have "walked away" from loans when values plummeted from the 10,000 RMB they had paid to 6,000... Link to comment
GZBILL Posted July 18, 2008 Report Share Posted July 18, 2008 Minimum now is 30% -- 40% if your second house. Bill I'm assuming this is if the first house has a mortgage on it also??? Yes ... and no. It is not supposed to work that way. Supposedly a second home is supposed to require a 40% downpayment regardless of whether the previous house(s) was financed or not. However, since their usual way of checking is through the People's Bank of China credit reporting system (similar to our credit bureaus) and that only -- for the moment -- picks up homes with mortgages. If they see from the PBOC credit reporting system you have a house already, they will make you put down 40% plus raise the interest rate 25 basis points. Now, let's say you do have a first house that is mortgaged. The PBOC system -- when it comes to listing expats -- is completely and predictably fallible. I, for example, have six first houses. Currently expats may only own 1 property which must be residential and your primary place of residence. This is also not a major obstacle, usually. Legally, according to PBOC regulations, an expat can finance no more than 50% of the appraised / purchase value of a new home. This regulation -- as with the regulation on maximum credit card limits -- is routinely ignored by the banks. Link to comment
rogerluli Posted July 18, 2008 Report Share Posted July 18, 2008 I am informed that house prices have seen their greatest plunge in... SHENZHEN... Some owners there have "walked away" from loans when values plummeted from the 10,000 RMB they had paid to 6,000... http://www.atimes.com/atimes/China_Business/JG18Cb01.html Here's an article to back up my claim... Link to comment
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