Cross-posted from Investing in Chinese stocks:
In Tongling, for borrowers accessing home savings accounts (some Chinese workers have a special housing account with money paid in by their employer; the money can be used to purchase a home or for rent) will see their down payments cut to 20% and also be able to borrow up to 300,000 yuan, an increase of 50,000 yuan. According to the report, they are also easing buying restriction on non-residents. In contrast to the rumored policy change in Ningbo that mainly benefits multiple home buyers, this policy will mainly benefit first time home buyers.
Housing provident fund loans, apply for a loan on the qualification of workers, individual housing provident fund deposit Term deposit from the past six months or more of continuous relaxation for individuals to deposit three consecutive months or more; highest single-worker households can apply for funds from the loan amount 250,000 yuan up to 300,000 yuan; workers apply for first time home buyers down payment ratio of individual housing provident fund loans reduced from 30% to 20%; liberalized the policy limit secondary housing provident fund loans.
Meanwhile, the appropriate relaxation of foreign buyers Tongling residents move into residence conditions, “Opinions”, foreign residents in the city’s purchase of commodity housing, rely on real estate management departments for the record, ” real estate sales contract, “the purchase invoices, tax paid certificates for accounts to move entry formalities, before moving into the past to change the housing ownership certificates must apply restrictive conditions account, but before registration of property rights may not be released for housing, “real estate sales contracts.”
Meanwhile, in Ningbo, buying restrictions affect two groups of home buyers. One group is made up of first-time home buyers, who for whom restrictions such as residency requirements are important. Easing restrictions that limit first-time buyers could unlock some pent up demand. The other group is made up of speculators and investors. Ningbo’s possible policy easing will benefit this latter buyer: under the rumored change, the buying restriction in the city will be limited to each district, allowing for investors to buy multiple homes across the districts. Currently, individuals can only own two homes in the city.
Allowing more first time home buying would support the market here because their demand is long-term. First-time buyers are more likely to buy even if they are worried about prices falling further and they will sit through a decline. Investors and speculators will disappear if the market weakens and their housing supply may also be dumped back on the market. At the bottom of the market, investors can accelerate the upturn in the housing market, but if expectations have changed and the trend in the market has reversed, few speculators will step into oncoming traffic.
The article states that it is a real estate industry insider who said he was told the policy was changed. This has not been confirmed by the government.
In other words, even if the buyers have homes in a district of Ningbo City, but in other areas as long as they own one home or less, he can continue to purchase. In the past, the owner of two houses in Ningbo City was banned from buying an additional house. The news was interpreted as Ningbo City real estate industry is good news: “Today ushered in a relaxed, although not enough to relax, but the good news is relaxed, we feel is very happy.” “The whole policy trimming, no matter from which side both in terms of promoting the role, that is, everyone inside the rice bowl can hold more than a little, then certainly there will be a certain role. “
