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China mortgage boycott data erased by censors as crisis spreads

bloomberg.com

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Re: China mortgage boycott data erased by censors as crisis spreads

#91

Post by theplumber »

Animats wrote: post #69
sbierwagen wrote: post #32

Earlier quoted context omitted.

>get it paid back in the NEXT 30 YEARS Why emphasize that? 30 year mortgages are common in the US. At current rates of 5.5%, the total paid in interest will be bigger than the original loan. Of course, most US mortgages are taken out on housing units that actually exist.

> Of course, most US mortgages are taken out on housing units that actually exist. Construction is usually financed by a construction loan, at a higher rate than a mortgage, and the builder is the borrower. But not always. Here are some US failures from the 2008 housing crash.[1] China has an unusual problem - the Party really, really doesn't like elections. For anything. But China has buyable apartments, which work…

[flagged]

Re: China mortgage boycott data erased by censors as crisis spreads

#92

Post by bogomipz »

ganyu wrote: post #27
CoastalCoder wrote: post #19

The linked story kind of buries the context info: > Nomura said the refusal to pay mortgages stems from the widespread practice in China of selling homes before they’re built. Funds from presales are kept in escrow accounts to use for construction. But confidence that projects will be completed has weakened as developers’ cash woes intensified. > “Inappropriate usage of presale proceeds and the lack of adequate super…

Short (?) intro for those who don't know how it works in CN: 1. Local govts are in heavy debt and sell land to pay back their debt. 2. Real estate corps pay a hell lot of money (don't care where they get them) to purchase a land ownership (for 70 years max) from the govt. 3. Before construction even begins, the real estate corps start selling the houses to citizens. 4. Citizens pay up to 40% of the total price on the…

>."1. Local govts are in heavy debt and sell land to pay back their debt."

What is the source of the debt, is it bonds, do they just run a deficit, something else?

Re: China mortgage boycott data erased by censors as crisis spreads

#94

Post by robocat »

schleck8 wrote: post #46
m3kw9 wrote: post #5

They can’t block GitHub because a lot of chinese tech firms depend on it. That is something very hard to develop locally because the entire world can contribute

They are trying with https://gitee.com

Off-topic, but their “pretty” design is surely an anti-pattern for attracting developers. (Then I looked at https://github.com/ and it has an inane graphical world that looks like a designer’s folio project too!)

Gitee also put the site language choice in the footer - odd choice. Plus some UI bugs on the page. Yuck.

Re: China mortgage boycott data erased by censors as crisis spreads

#95

Post by unicornmama »

thriftwy wrote: post #76
unicornmama wrote: post #60

Earlier quoted context omitted.

~96% of us humans don't live in America, most of us don't have 30 year mortgages.

I'm pretty sure large portions of Latin America, Europe, ex-USSR and perhaps India/South East Asia have 30 year mortgages.

No we don’t. You get 5 year fixed, 10 year max. Beyond is prohibitively expensive.

Re: China mortgage boycott data erased by censors as crisis spreads

#96

Post by traceroute66 »

CoastalCoder wrote: post #19

The linked story kind of buries the context info: > Nomura said the refusal to pay mortgages stems from the widespread practice in China of selling homes before they’re built. Funds from presales are kept in escrow accounts to use for construction. But confidence that projects will be completed has weakened as developers’ cash woes intensified. > “Inappropriate usage of presale proceeds and the lack of adequate super…

> widespread practice in China of selling homes before they’re built

But isn't that really the case in most countries these days (or at least those countries where a home-buying culture is prevalent).

For example, a quick internet search for the UK suggests 40% ± 5% is the going rate for off-plan purchases.

Re: China mortgage boycott data erased by censors as crisis spreads

#97

Post by onetokeoverthe »

sbierwagen wrote: post #32
ganyu wrote: post #27

Earlier quoted context omitted.

Short (?) intro for those who don't know how it works in CN: 1. Local govts are in heavy debt and sell land to pay back their debt. 2. Real estate corps pay a hell lot of money (don't care where they get them) to purchase a land ownership (for 70 years max) from the govt. 3. Before construction even begins, the real estate corps start selling the houses to citizens. 4. Citizens pay up to 40% of the total price on the…

>get it paid back in the NEXT 30 YEARS Why emphasize that? 30 year mortgages are common in the US. At current rates of 5.5%, the total paid in interest will be bigger than the original loan. Of course, most US mortgages are taken out on housing units that actually exist.

No post body was provided.

Re: China mortgage boycott data erased by censors as crisis spreads

#98

Post by thriftwy »

unicornmama wrote: post #95
thriftwy wrote: post #76

Earlier quoted context omitted.

I'm pretty sure large portions of Latin America, Europe, ex-USSR and perhaps India/South East Asia have 30 year mortgages.

No we don’t. You get 5 year fixed, 10 year max. Beyond is prohibitively expensive.

How expensive are we talking about?

Of course people tend to pay mortgage early to avoid paying many times over at 10%.

But, having small montly payment helps in case you have some temporary financial emergency.

Re: China mortgage boycott data erased by censors as crisis spreads

#99

Post by CapricornNoble »

thriftwy wrote: post #76
unicornmama wrote: post #60

Earlier quoted context omitted.

~96% of us humans don't live in America, most of us don't have 30 year mortgages.

I'm pretty sure large portions of Latin America, Europe, ex-USSR and perhaps India/South East Asia have 30 year mortgages.

Also Japanese mortgages are 30 years, or even 50 years. But the interest rates are <1% here.

Re: China mortgage boycott data erased by censors as crisis spreads

#100

Post by y04nn »

ganyu wrote: post #27
CoastalCoder wrote: post #19

The linked story kind of buries the context info: > Nomura said the refusal to pay mortgages stems from the widespread practice in China of selling homes before they’re built. Funds from presales are kept in escrow accounts to use for construction. But confidence that projects will be completed has weakened as developers’ cash woes intensified. > “Inappropriate usage of presale proceeds and the lack of adequate super…

Short (?) intro for those who don't know how it works in CN: 1. Local govts are in heavy debt and sell land to pay back their debt. 2. Real estate corps pay a hell lot of money (don't care where they get them) to purchase a land ownership (for 70 years max) from the govt. 3. Before construction even begins, the real estate corps start selling the houses to citizens. 4. Citizens pay up to 40% of the total price on the…

The pyramid can keep growing while your population is increasing, but that is not the case in China, the fertility rate seems low and its population is shrinking [1].

[1] https://www.bbc.com/future/article/20220531-why-chinas-popul...

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