Beijing Just Unveiled Uber-Draconian "One House Per Family" Rules To Curb Bubble

[shotgunner]

It's not "you will fail", what I said. You did indeed fail.

Wow "you did fail"! Show me

 

[tarunraju]

Wow "you did fail"! Show me

1. OP

2. Armand's assertion

3. Your rebuttal with the same lame "how does your government handle such issues" (generic, hypothetical, rhetorical comparison, if there's no genuine counter point to make), which wouldn't even fit in the case of France

 

[shotgunner]

1. OP

2. Armand's assertion

3. Your rebuttal with the same lame "how does your government handle such issues" (generic, hypothetical, rhetorical comparison, if there's no genuine counter point to make), which wouldn't even fit in the case of France

1. Back to topic, good, I didn't fail.

2. Armand wrongly speculates that this is short term. As of now no one knows the duration of effectiveness. And the "yawn" part ...

3. This is a forum for open discussion, it would be good for posters to share views and best practices, including how similar scenarios (irregarding of their extent) are handled elsewhere. One part of the question would be to inquire on the seriousness of other authorities, qualitatively speaking. As far as I know, bubbles didn't occur in Africa, nor in France.

The Mars part would be interesting, I have no idea. Is there any bubble over there? How is their government handling things? Please share some thoughts.

 

[Known_Unknown]

Why are they restricting people from buying two houses if they qualify according to the bank's mortgage rules? Why don't they just raise the minimum downpayment or mortgage interest rates? After all, doesn't the CCP own everything? It's not like we're talking about a market economy where the government can do little to directly affect spending trends.

 

[Necrosis Factor]

Why are they restricting people from buying two houses if they qualify according to the bank's mortgage rules? Why don't they just raise the minimum downpayment or mortgage interest rates? After all, doesn't the CCP own everything? It's not like we're talking about a market economy where the government can do little to directly affect spending trends.

The CCP doesn't own everything, and we ARE talking about a market economy post 1980's.

Plenty of "market" economies as you call it (even though China is one) affect spending trends on a daily basis. Interest rates, government car-buy back programs, tax-free holidays...you name it!

 

[Armand2REP]

How serious is your non-CCP government to such problems?

Yawn ... another point-less one liner ...

Our property prices have been on the decline since the financial crises... problem solved. I can get a a nice suburban home p/s/m for less than the cost of a Chinese 2nd tier flat. Our incomes are 10 times higher than yours yet you have property prices in the same range. Bon chance... you will need it.

 

[Armand2REP]

1. Back to topic, good, I didn't fail.

2. Armand wrongly speculates that this is short term. As of now no one knows the duration of effectiveness. And the "yawn" part ...

3. This is a forum for open discussion, it would be good for posters to share views and best practices, including how similar scenarios (irregarding of their extent) are handled elsewhere. One part of the question would be to inquire on the seriousness of other authorities, qualitatively speaking. As far as I know, bubbles didn't occur in Africa, nor in France.

The Mars part would be interesting, I have no idea. Is there any bubble over there? How is their government handling things? Please share some thoughts.

1) Oh yeah, you failed with a capital F. Comparing France... now that was funny.

2) Until you raise interest rates, it isn't going to be stopped. Playing with a couple first tier cities is too late now, developers are on to the interior 2nd and 3rd tiers.

3) Comparing France and China is not remotely comparable. France has decent housing prices for our incomes which are WAY higher than yours. Chinese prices would be decent in France, but not to Chinois.

 

[mattster]

The people who can afford more than 1 or 2 houses are probably speculators that can pay cash for the property.

Here is the problem with this law. The millionaire who is trying to buy a bunch of houses is suddenly going to buy the house in the name of his college kids, nieces, nephews, uncles and aunts. When he flips the house for a big profit, he will then give his relatives whose name he used to buy the house a small commission.

There is no good way to prevent this type of fraud.

 

[Armand2REP]

There is no good way to prevent this type of fraud.

If you want to solve it, you need to address the underlying causes. The main reason people are pouring their money into property is because they have nowhere else to invest. A negative inflation savings interest rate means that no one is going to deposit their money in banques to make money because they are losing it. Stockmarket is too volatile and they have no real securities market.

First thing CCP needs to do is raise the interest rates so people are more comfortable making deposits than withdrawals to buy property

Second, give Chinois more investment options than the gambling casino that are Chinese stock exchanges, stop hoarding money in China and let them invest offshore

Third, stop government officials from getting rebates on property and crack down on their hoarding

Fourth, stop local governments using land sales as a source of revenue, ie let them have the right to collect taxes

Fifth, make an immediate withdrawal of all SOEs from land speculation... and I mean ALL! Not this BS divestment declaration that has no effect when SOEs are outbidding developers for residential property

Sixth, stop driving the peasants off their land into the cities with compensation payments that are paid by LGs selling land to fuel the urbanisation, let them get their on their own

Those are the top 6 things CCP needs to do, all this other stuff like cutting down loans on 2nd and 3rd homes, or Beijing cutting sales to one, or property tax in a few select cities isn't going to have much to any effect. They have to deal with the core issues.

 

[shotgunner]

1) Oh yeah, you failed with a capital F. Comparing France... now that was funny.

2) Until you raise interest rates, it isn't going to be stopped. Playing with a couple first tier cities is too late now, developers are on to the interior 2nd and 3rd tiers.

3) Comparing France and China is not remotely comparable. France has decent housing prices for our incomes which are WAY higher than yours. Chinese prices would be decent in France, but not to Chinois.

1) And you were half right, instead we should compare with US & Japan, where bubbles did happen. Comparing with France? No thanks, no bubble there, like Greece, Portugal, & Africa.

2) No idea. Raising interests rate only affect those playing leverage. However, it may still impact confidence of the longs, and that serves the purpose.

3) You were right again, financial crisis help to keep your prices down. Ah yeah, that's your solution, financial crisis, a good one. Talking about income, you believe CCP numbers? Take a look at recent Beijing auto show. Too far? Go to Gucci shop down town, or DFS in your airport, then figure it out. Your income is WAY higher? You fail yourself like a giant moron with a capital M!

 

[shotgunner]

Our property prices have been on the decline since the financial crises... problem solved. I can get a a nice suburban home p/s/m for less than the cost of a Chinese 2nd tier flat. Our incomes are 10 times higher than yours yet you have property prices in the same range. Bon chance... you will need it.

As said, you numnut believe CCP numbers?
Grow a brain ... you need it