China's home-price slump deepens to new 9-year low despite stimulus
China's home-price slump deepens to new 9-year low despite stimulus
cross-posted from: https://lemm.ee/post/39846718
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Housing is too cheap? Now that's a problem I'd like to have
I’m a homeowner and I support this message. Couldn’t afford the house I live in today and we only bought it 4 years ago.
Affordable housing is fantastic for everyone, but values of houses falling is kinda scary.
There's definitely a house of cards feeling in real estate in China, and if there were any sort of collapse it would be felt around the world.
As in any economic instability, the wealthy can consolidate their positions and the poors just get pushed further into the mud.
Wasn't Evergrande supposed to collapse a year or two ago?
Yes.
You wouldn't like it if you owned three houses and have all your savings invested in them
Diversify your investments is literally the first thing anybody learns about investment.
Also, let me cry for those poor rich people with still 3 houses left, they're going to end in poverty if it's worth less!
I could be wrong, but I think they're referring to all the middle class Chinese who were using housing as an investment vehicle (cause that was a common thing in China to my understanding).
I did not know that, but I don't think it matters. If you have 3 houses, even if they're worth less, you have a place to live and the possibility to house 2 other families/even more. That is wealthy in my opinion, and it doesn't really matter how much it "values" at.
It matters when all 3 of them are mortgaged and the mortgages are now more than their actual value.
(Before you blame the buyers for being dumb, realise that due to cultural context and other factors, pretty much the entire middle class is in this sort of situation).
You wouldn't like it if you owned three houses
Hold on, let me get out my XXS violin
Boo hoo, I own one house and have all my savings in it. Go sell 2 of them and live in the 3rd, let someone else use them without needing a parasite middleman between them and housing.