Guest ShaQuaNew Posted October 23, 2008 Report Share Posted October 23, 2008 (edited) I got a little snippet from the Chinese news this morning, that many Chinese people are waiting to buy homes because the Chinese government will be easing the requirements for home lending, and at the same time lowering the property tax. Several would-be buyers are waiting in the wings for this to happen. I am told that this is a sure thing. Now mind you, I'm not able to corroborate this as my wife was translating the news, but it is indeed something that appears on it's face to be some sort of stimulus package for Chinese citizens. Additionally, the anticipation of these new home-buying policies, appears to be having a positive affect on the Chinese stock market. Edited October 23, 2008 by ShaQuaNew (see edit history) Link to comment Share on other sites More sharing options...
GZBILL Posted October 24, 2008 Report Share Posted October 24, 2008 I got a little snippet from the Chinese news this morning, that many Chinese people are waiting to buy homes because the Chinese government will be easing the requirements for home lending, and at the same time lowering the property tax. Several would-be buyers are waiting in the wings for this to happen. I am told that this is a sure thing. Now mind you, I'm not able to corroborate this as my wife was translating the news, but it is indeed something that appears on it's face to be some sort of stimulus package for Chinese citizens. Additionally, the anticipation of these new home-buying policies, appears to be having a positive affect on the Chinese stock market. It's true that the People's Bank is lowering the requirement of a 30% down payment to 20% for first-home buyers. It's not clear if this will apply to expats, though. They are also allowing banks to discount the interest rate by 30%. These new incentives have some conditions attached, though. I think one of them is that they only apply to those buying properties that are 70 m2 or less so this means it targets the lower income population. I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. Link to comment Share on other sites More sharing options...
rogerluli Posted October 24, 2008 Report Share Posted October 24, 2008 I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. That's what I read...The BIG DROP is coming next spring... Link to comment Share on other sites More sharing options...
Guest ShaQuaNew Posted October 24, 2008 Report Share Posted October 24, 2008 I got a little snippet from the Chinese news this morning, that many Chinese people are waiting to buy homes because the Chinese government will be easing the requirements for home lending, and at the same time lowering the property tax. Several would-be buyers are waiting in the wings for this to happen. I am told that this is a sure thing. Now mind you, I'm not able to corroborate this as my wife was translating the news, but it is indeed something that appears on it's face to be some sort of stimulus package for Chinese citizens. Additionally, the anticipation of these new home-buying policies, appears to be having a positive affect on the Chinese stock market. It's true that the People's Bank is lowering the requirement of a 30% down payment to 20% for first-home buyers. It's not clear if this will apply to expats, though. They are also allowing banks to discount the interest rate by 30%. These new incentives have some conditions attached, though. I think one of them is that they only apply to those buying properties that are 70 m2 or less so this means it targets the lower income population. I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. Thanks for that information Bill. My wife and I have discussed the possibility of buying a house, perhaps in the latter part of next year. I wonder if there would be any advantage in leaving me, as an expat out of the contract, and having her make the deal? Do you know whether the Chinese government would allow that? Then again, I guess I may have to be in the picture, as it would be my income. I haven't looked into this at all, but it might be a good deal for us to buy rather than rent. Link to comment Share on other sites More sharing options...
NUWORLD Posted October 24, 2008 Report Share Posted October 24, 2008 I got a little snippet from the Chinese news this morning, that many Chinese people are waiting to buy homes because the Chinese government will be easing the requirements for home lending, and at the same time lowering the property tax. Several would-be buyers are waiting in the wings for this to happen. I am told that this is a sure thing. Now mind you, I'm not able to corroborate this as my wife was translating the news, but it is indeed something that appears on it's face to be some sort of stimulus package for Chinese citizens. Additionally, the anticipation of these new home-buying policies, appears to be having a positive affect on the Chinese stock market. It's true that the People's Bank is lowering the requirement of a 30% down payment to 20% for first-home buyers. It's not clear if this will apply to expats, though. They are also allowing banks to discount the interest rate by 30%. These new incentives have some conditions attached, though. I think one of them is that they only apply to those buying properties that are 70 m2 or less so this means it targets the lower income population. I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. Bill, Yes very true indeed.Just yesterday the wife and i were watching CCTV-4 and on the news they where talking about this. My wife was doing some translating for me and told me the same thing. they only apply to those buying properties that are 70 m2 or less so this means it targets the lower income population. Everyone is waiting for the plunge.Should be any day now! Link to comment Share on other sites More sharing options...
rogerluli Posted October 24, 2008 Report Share Posted October 24, 2008 I got a little snippet from the Chinese news this morning, that many Chinese people are waiting to buy homes because the Chinese government will be easing the requirements for home lending, and at the same time lowering the property tax. Several would-be buyers are waiting in the wings for this to happen. I am told that this is a sure thing. Now mind you, I'm not able to corroborate this as my wife was translating the news, but it is indeed something that appears on it's face to be some sort of stimulus package for Chinese citizens. Additionally, the anticipation of these new home-buying policies, appears to be having a positive affect on the Chinese stock market. It's true that the People's Bank is lowering the requirement of a 30% down payment to 20% for first-home buyers. It's not clear if this will apply to expats, though. They are also allowing banks to discount the interest rate by 30%. These new incentives have some conditions attached, though. I think one of them is that they only apply to those buying properties that are 70 m2 or less so this means it targets the lower income population. I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. Bill, Yes very true indeed.Just yesterday the wife and i were watching CCTV-4 and on the news they where talking about this. My wife was doing some translating for me and told me the same thing. they only apply to those buying properties that are 70 m2 or less so this means it targets the lower income population. Everyone is waiting for the plunge.Should be any day now! Only thing I wonder about is usually when everyone knows something is going to happen... it doesn't... Link to comment Share on other sites More sharing options...
IllinoisDave Posted October 24, 2008 Report Share Posted October 24, 2008 (edited) I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. That's what I read...The BIG DROP is coming next spring... So does that mean that we should try to unload my wife's property (an apartment) in Shenzhen now if she can find someone to buy? If we wait will we be SOL? Will prices go back up after they hit the bottom making it worth hanging onto for the long term? Edited October 24, 2008 by IllinoisDave (see edit history) Link to comment Share on other sites More sharing options...
rogerluli Posted October 24, 2008 Report Share Posted October 24, 2008 I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. That's what I read...The BIG DROP is coming next spring... So does that mean that we should try to unload my wife's property (an apartment) in Shenzhen now if she can find someone to buy? If we wait will we be SOL? Will prices go back up after they hit the bottom making it worth hanging onto for the long term? You own a house in SZ??? B) I read prices are down by 1/3rd there...One new housing development that is all sold had 50 apartments occupied out of 780...Will it come back??? When??? Geez Dave I'm not a mystic only a mini-mod... Link to comment Share on other sites More sharing options...
Sebastian Posted October 24, 2008 Report Share Posted October 24, 2008 I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. That's what I read...The BIG DROP is coming next spring... So does that mean that we should try to unload my wife's property (an apartment) in Shenzhen now if she can find someone to buy? If we wait will we be SOL? Will prices go back up after they hit the bottom making it worth hanging onto for the long term? Shenzhen is such a migrant city (ppl come from all over china to work there) . Why not just keep it rented out for the duration? Link to comment Share on other sites More sharing options...
IllinoisDave Posted October 25, 2008 Report Share Posted October 25, 2008 I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. That's what I read...The BIG DROP is coming next spring... So does that mean that we should try to unload my wife's property (an apartment) in Shenzhen now if she can find someone to buy? If we wait will we be SOL? Will prices go back up after they hit the bottom making it worth hanging onto for the long term? You own a house in SZ??? I read prices are down by 1/3rd there...One new housing development that is all sold had 50 apartments occupied out of 780...Will it come back??? When??? Geez Dave I'm not a mystic only a mini-mod... Well, my wife does anyway. I guess the answer seems to be to do as Darnell says and keep it, rent it out and see what happens. Link to comment Share on other sites More sharing options...
rogerluli Posted October 25, 2008 Report Share Posted October 25, 2008 I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. That's what I read...The BIG DROP is coming next spring... So does that mean that we should try to unload my wife's property (an apartment) in Shenzhen now if she can find someone to buy? If we wait will we be SOL? Will prices go back up after they hit the bottom making it worth hanging onto for the long term? You own a house in SZ??? I read prices are down by 1/3rd there...One new housing development that is all sold had 50 apartments occupied out of 780...Will it come back??? When??? Geez Dave I'm not a mystic only a mini-mod... Well, my wife does anyway. I guess the answer seems to be to do as Darnell says and keep it, rent it out and see what happens. Hey if the guvmint really wants to pump up the housing market in China... I HAVE THE SOLUTION... Allow foreigners unrestricted access to buying houses... A simple move that would flood the market with house buyers... (and pump up the values of our houses conincidentally... ) And help out Dave too... Link to comment Share on other sites More sharing options...
Guest ShaQuaNew Posted October 26, 2008 Report Share Posted October 26, 2008 Hey if the guvmint really wants to pump up the housing market in China... I HAVE THE SOLUTION... Allow foreigners unrestricted access to buying houses... A simple move that would flood the market with house buyers... (and pump up the values of our houses conincidentally... ) And help out Dave too... China doesn't view foreigners in the same way the US does. The US allows just about anyone that has the money to buy what they want, and where they want. It isn't so in China. Being a foreigner in China limits you in just about every way you can imagine. China is very careful to keep it economy under control, and takes a dim view of foreign investment. Link to comment Share on other sites More sharing options...
IllinoisDave Posted October 26, 2008 Report Share Posted October 26, 2008 I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. That's what I read...The BIG DROP is coming next spring... So does that mean that we should try to unload my wife's property (an apartment) in Shenzhen now if she can find someone to buy? If we wait will we be SOL? Will prices go back up after they hit the bottom making it worth hanging onto for the long term? You own a house in SZ??? I read prices are down by 1/3rd there...One new housing development that is all sold had 50 apartments occupied out of 780...Will it come back??? When??? Geez Dave I'm not a mystic only a mini-mod... Well, my wife does anyway. I guess the answer seems to be to do as Darnell says and keep it, rent it out and see what happens. Hey if the guvmint really wants to pump up the housing market in China... I HAVE THE SOLUTION... Allow foreigners unrestricted access to buying houses... A simple move that would flood the market with house buyers... (and pump up the values of our houses conincidentally... ) And help out Dave too... Let's get that referendum on the next ballot Rog. Link to comment Share on other sites More sharing options...
GZBILL Posted October 26, 2008 Report Share Posted October 26, 2008 I would think that most Chinese people will not rush out to buy a house yet as they are waiting for the upcoming plunge in property prices first. That's what I read...The BIG DROP is coming next spring... So does that mean that we should try to unload my wife's property (an apartment) in Shenzhen now if she can find someone to buy? If we wait will we be SOL? Will prices go back up after they hit the bottom making it worth hanging onto for the long term? I think markets such as Shenzhen still have a ways to drop before hitting bottom, but that's without government intervention. I'd say if the house is 90 m2 or less, hang onto it. There's a chance it may actually increase in value. The government has indicated that it will take whatever steps are necessary to shield the property markets from devastation, but there is only so much they can do. It's highly likely they will take measures designed to protect that sector of real estate more inclined towards the masses than for the more well off. If you have a house that is 100 m2 or more, that might be one of the ones that will be hit harder. If you can rent it out for a semi-decent price, that might be a good option, but even the rental market in Shenzhen is very weak currently. It's a tough call and a lot depends on a lot of factors known only to you and your current financial position. Link to comment Share on other sites More sharing options...
GZBILL Posted October 26, 2008 Report Share Posted October 26, 2008 Hey if the guvmint really wants to pump up the housing market in China... I HAVE THE SOLUTION... Allow foreigners unrestricted access to buying houses... A simple move that would flood the market with house buyers... (and pump up the values of our houses conincidentally... ) And help out Dave too... China doesn't view foreigners in the same way the US does. The US allows just about anyone that has the money to buy what they want, and where they want. It isn't so in China. Being a foreigner in China limits you in just about every way you can imagine. China is very careful to keep it economy under control, and takes a dim view of foreign investment. Actually, allowing expats unrestricted access to the property market would not help China currently. The main reason why restrictions are in place is not because of the property market per se, rather than it was a haven for "hot" money. There are limitations on expats living in China, but for the most part I don't think they are too unreasonable. In fact, in many aspects the restrictions here are far less severe than those on expats living in the US. Link to comment Share on other sites More sharing options...
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