Should China begin protect real estate market now?
Posted on Jul-14-2008· by china investor
There have a report which said china should begin protect chinese real estate market.But a newspaper done a vote,nearly 80 persent vistor said china should not protect real estate.I think so!
These people who said china shoud protect real estate have 3 reason:
1:real estate will create a lot of tax.
2:If the price of real estate cut down,there will have huge losses of banks and house owner.
3:If china have young woman,the price of real estate should until rising.
So,I think these reason is not right:
1:There have a sample in Yuan Dynasty in china history,the ruler want many many money,so they have implemented policies to strengthen tax revenue,in a short time,there have some money,but just 2 years,China experienced an unprecedented economic crisis.If our govment only look at tax,people’s money will los,and rigid demand of people can not be met,and makes people can not confront the economic crisis.In china,it is not 2 people buy a house, it is grandparents+ grandfather and grandmother + a couple buy a house.And they need work hard 15 ~ 20 years to paid the loan.We can not Deprived of the welfare of the people just for tax.
2:The long-term real estate prices will be upward,these people which buy house just for live will not really faced the actual losses,and speculators had get staggering profits in the past five years,there have not a market which only rising,not drop.
At present the banking system and the quality of their strength is very different from 2000 years, we can reduce the bubble by ourself,Or we can let bubele been collapse by these speculators,the impact of the banking system is entirely different. Southeast Asia is a sampleof the crisis, nearly is the Vietnamese.
3:china have a hurge number of people,but do a statistics of them,are there have how many X00 million people earned less than two dollars a day?China’s housing prices may wage income and the proportion is far greater than the general nationals.And China’s population growth rate faceing inflection point.
So,National real prosperity is the people’s prosperity, the people ‘s crisis, is the real national’s crisis. Possession of wealth among the people is the right way. That’s what I want to say.
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