Will these calm down the house price?

Will these calm down the house price?
Jul 25, 2007 02:12
JOHNNY512 Points: Join Date: Nov 29, 2004 Status: offline	As the central bank declared to raise the interest rate by 0.27% and to lower the interest tax to 5%, the interest for personal housing accumulation funds raised about 0.09%. What effect will these make to the real estate, to calm down the house price or not? In theory, the higher interest rate can prevent more and more people invest in the real estate. On the other hand, it may bring much burden for those house buyers. They need to pay more for their house. From this angle, it is helpful to the real estate. The house buyers need to be ratinoal and the house price may become lower. However, it is just a theory. Will it take effect? Personally, I do not think so. It is the seventh time that the central bank raised the interest rate. Also it suggests that this method could not work well. What do you think of this move? Does it really have magic power to calm down the house price?

Jul 25, 2007 02:12

JOHNNY512
Points:
Join Date: Nov 29, 2004
Status: offline

As the central bank declared to raise the interest rate by 0.27% and to lower the interest tax to 5%, the interest for personal housing accumulation funds raised about 0.09%. What effect will these make to the real estate, to calm down the house price or not?

In theory, the higher interest rate can prevent more and more people invest in the real estate. On the other hand, it may bring much burden for those house buyers. They need to pay more for their house. From this angle, it is helpful to the real estate. The house buyers need to be ratinoal and the house price may become lower. However, it is just a theory. Will it take effect?

Personally, I do not think so. It is the seventh time that the central bank raised the interest rate. Also it suggests that this method could not work well.

What do you think of this move? Does it really have magic power to calm down the house price?

Jul 25, 2007 22:09	#1
KATRINA Points: Join Date: Nov 29, 2004 Status: Offline	It is useless, I think. More and more people want to buy a house, but the houses are limited. That is why the house price keeps rising and rising. To solve the problem, more land should be developed. On the other hand, those developers keep the house and do not sell them. The government should set some rules to regulate the real estate market.

Jul 26, 2007 04:32	#2
LEOPOLD219 Points: Join Date: Feb 7, 2007 Status: Offline	Don't think it will take effect. Just as Katrina says, more and more people want to buy a house, regardless how much they need to afford. Anyway, they need houses! Some direct regulations will be needed to lower the high price.

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