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Thread: Can property tax ease the high housing prices?
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[quote=CARLOS,564523]Nowadays people in China buy shares with loaned money. In some cases prices have rised over 100% and the prices have nothing to do with reality any more. The value of production has increased less than 10% so there is a lot of air in the bubble. I don´t know about the principles of banks in China, what their demands are for giving a loan. Anyway, 1989 in Finland stock collapsed. People had put their houses or apartments for a deposit for their loans and many lost it all because the bank said they have to pay the loan back immediately. Prices of houses collapsed because the supply increased rapidly. Houses had to be sold cheap and people then had no enough money to pay their loans which led them to a situation where they had a lot of loan left but no house... Chinese people have earlier done well buying only for a need and loaning money from family. Now they buy to get rich and loan money from the bank. Some do get rich but most don´t and many will loose everything. Some will perhaps loose their familys property, too... I think this will happen for sure. Next year or the next after that or the next after that... no one knows when but the fact is that it will happen sooner or later... [/quote]
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