Feels bad for the people paying mortgages for homes they’ll never get to see. They can’t just stop paying either. Doesn’t work that way.
[1] https://www.reuters.com/world/china/chinas-mortgage-boycott-...
But lets see how the utopia holds up to reality. Yay, we're living in interesting times.
For many of those owners the house is not intended to be lived in but rather an investment vehicle. Somewhere i read that a majority of home owning families (sometimes extended families) in China have more than one home -- don't know if that's true.
I kind of think this may be a slightly better model in terms of homebuyer protection... (May not sound good for the developer though)
Had to take the whole mortgage up front in one go, though.
Making people pay could collapse the entire economy.
Ahh yes, the ol' "privatise the profits, socialise the losses" approach to big finance failures.
A lot of what counts as government spending is actually the central government telling provinces and cities to spend. Except those also have heavy debt burdens after years of stimulus.
Very little central government money is trickling down. And the problem is not just that the developers are out of money, but their contractors have not been paid for months, those contractors have not paid their suppliers or workers for months, and down the line.
People here are all "let it fail" and don't seem to care about how many millions of people would be drastically affected. These are people's lives we're talking about. Stop waving it away as if it doesn't matter. The callousness here is appalling.
Also, don't look at what some politician says, regardless of country. What's important is what they do about perceived issues.
Hard as it may be, it will be better to just burn an entire generation rather than draw the final curtain on the People’s Republic of China and possibly the world economy as we know it.
The recent hard lines, with no sign of easing after multiple defaults, is a new thing.
Markets considered expensive in the West have significantly lower house price to income ratios. In San Francisco it is 12.3x, in London it is 13.9x, in Paris it is 18.8x, and in Shenzhen it is a whopping 40x.