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Chinese mortgage

30 October 2008
Written by: admin Posted under Mortgage

World financial crisis has come to builders and developers from China. In order to minimize losses and to support the real estate market, the government of China has made the decision on decrease in taxes for real estate operations, stamp duties, and also initial payments under the mortgage.
As the Chinese Ministry of Finance has informed, since November, 1st, the tax for citizens, who for the first time buying habitation, and also for those who gets habitation the area less than 90 sq. m, the tax to fulfillment of the transaction with the real estate will be lowered from 1,5 to 1 %. The Stamp duty at the rate of 0,05 % and VAT will be cancelled for all transactions on real estate purchase and sale. The initial payment at purchase of apartment by means of the mortgage will be lowered from 30 to 20 %. Besides, the decision to reduce the rate under hypothec credits is accepted.
The representative of National bank of China has informed that the purpose of a new package of measures is a struggle against global financial crisis by means of support of growth of local consumption and improvement of financial services for buyers of habitation. According to Clement Luk Shing, a director and assistant general manager at Centaline (China) Property, «new measures were expected for a long time already, they should give a positive signal to the real estate market is shows, that the government has weakened a vice».
The Peking habitation became more expensive on 6,9 % in comparison with the similar period of last year. But in comparison with August it has fallen in price on 0,2 %. The municipal government of Beijing has informed on Wednesday, that the price for the earth under residential buildings has decreased on 17,3 % in comparison with the last quarter and has made 445 dollars for one square meter.


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