This page has been archived and commenting is disabled.
What Can Possibly Go Wrong: In China Homes Are Offered "Zero Money Down"
How is China, which as we explained yesterday just completed a very bearish "head-and-mutated-shoulders" formation in its "gloomy" housing market and where the entire economy is threatened with imploding into a hollow house of cards (built in one of the Chinese ghost cities no less) because according to SocGen "the aggregate exposure of China’s financial system to the property market is likely to be as much as 80% of GDP", dealing with the threat of a housing market, and thus economic, and thus global depression? Here's how.
From Global Times:
East China's Fujian Province has eased curbs on home purchases amid a cooling property market, China Business Journal (CBJ) reported Monday, citing industry insiders.
Fuzhou, capital of Fujian Province, saw its home sales in terms of floor areas more than halved as the average home price more than doubled over the past five years, stock information portal aastocks.com reported on Monday.
This news came after media reports of massive home price discounts in cities like Hangzhou of East China's Zhejiang Province and Changzhou of East China's Jiangsu Province.
The punchline:
Since March, 20 property developers in Guangzhou have been offering "zero down-payments" to attract buyers, in addition to large discounts and tax refund, the National Business Daily reported Monday.
In other words, "please take this home: it's free."
What can possibly go wrong?
»
- 17270 reads
- Printer-friendly version
- Send to friend
- advertisements -
Bullish!
NINJA loans from the home of the Ninjas! The circle is complete.
Won Tu Lo
Just think...50,000 little Chinese babies were born today
Chinese houses are made of bricks and concrete and our houses are made of Chinese cardboards. there's will be still standing when loan will be paid off. we will have a pile of rubble when we retire.
Of course there is no bubble..never was.
Bullish for upcycle industry.
Chicken McNuggets.
…50,000 little Chinese babies were born today…
I remember listening to the NCR salesman Ira Hayes, (not the American Indigenous person who participated in the Iwo Jima flag raising), who made the rounds of the mid 80’s motivational speakers circuit allude to this very important point.
“Customers”, he said, just “keep on coming.”
It always struck me as the reason why deception, wonder and excitement are so easily marketed by crusty old fools hell bent on concealing their own nefarious activities, the beauty of Creation and the concept of Freedom from those they believe to be their “inferiors”.
I take solace in the ZH tag line “On a long enough timeline, the survival rate for everyone drops to zero”, … “but after this the judgment”. (Hebrews 9:27b)
Jmo.
How many Chinese kicked the bucket yesterday? Increased pollution, undersupply of calories, not enough females .... extremely bad for the demographics. Who would immigrate to China?
Ninja's are Japanese, I would think they are enemies to the home of Shaolin Kung Fu...
Anyone still thinking the Chinese are ready for World Hyperpower status isn't paying attention. At least our crumbling infrastructure is old... The cultural corruption is already collapsing the "Chinese Miracle" economy. I live in the SGV region of SoCal that has been invaded by ChiComs. These guys fled for a reason. Though I do look forward to them losing their freshly bought Bubble 2.0 shacks via executive order once relations with China get to hot :-)
The banksters giveth and so shall they taketh away.
So what they are giving away free houses. As long as we give them our business....and our dollars.....then nothing changes.
Only after the prols realize that what we have is a confidence scam.....and there is no confidence left.....then the hyperinflation explosion followed by the deflationary crater will take care of this situation.....and ours.
But only after the dust clears and enough blood is shed from the war to follow.
In Canada the banks were allowed to insure "no money down" mortgages since 2004. By 2008 over 400 billion worth of those mortgages had to be taken off the banks books. The government agency that insured the mortgages created a MBS which the banks were able to market to get liquidity as a goodly portion of those mortgages are non performing.
Exposure to Canadian real estate has been directly transfered to the tax payers.
It is topped out at $600 billion. That's like only 200k per functioning taxpayer.
Disgusting. zero down debt is like the 'hyperpalatable' food that was discussed here yesterday.
The debt serf masses feel like they are getting something for free, but then figure out that they have been screwed by promising all of their future income (just like a mcdonalds binge gives them ass pissing for the next three days).
Send mandarin Mel Watt over ASAP
dupe
you speak truth. I mean, the US is fucked, but China has way, way too many people on too little {arable} land.
I think a few people commented on this, forget who, but - the Russian far east is mineral and perhaps oil/gas rich, and very sparsely populated. Much of it is worthless for agriculture, but a lot is not, a lot is good for grazing and the fishing grounds are considerable.
Either Russia and China make some sort of deal or a war within 20 years or so seems inevitable. One might add Mongolia to this mix - huge area, mostly empty, and could not resist a bona fide Chinese takeover.
Interesting times.
"NINJA loans from the home of the Ninjas! The circle is complete."
You meant well.
I'm pretty sure a zero money down, interest only mortgage is the same thing as renting...except that you're now counted as a "homeowner".
No, no, wrong you are. You are now counted as an investor. Make the payments for a few months, and when the price goes up 30% (which it always does), flip it for an easy profit. ROI is very high.
I have no money, so put me down for three !!
I'll take a Baker's Dozen....I mean, what can go wrong?
Anyway, why would anyone buy there when they can buy up moar of Kornifornia and Texas? The last 4/7 houses sold in my little area were for cashola to some Chinese families.Gee.
Gee.
Free? Ain't good enough. I'll wait for a better deal.
This is Chinas savings account....if the people lose that...there goes their middle class..
Central Bank Worried China's Mortgage Slaves Will Walk Away; Bank Exec Says Houses Overpriced; Banks Unwilling to Lose Money; 1.23 Trillion of Household Deposits Leaves Banks in April
For all the doom and gloom headlines in the Chinese media though, prices are still basically flat. The cuts have almost entirely been on new buildings.
Transaction slowdowns, inventory buildup and cuts to existing home prices are definitely pointing in the direction of big trouble. Interest costs are equal to 40% of developer profits, Real Estate Agencies Are Downsizing, and home ownsers regret not selling sooner. This is why the PBOC sent a political message to the banks the day before.
Oh BTW, China has subprime too. Credit guarantee companies pay the down payment for poor Chinese people. And credit guarantee companies are set up by people with lots of cash sitting around, like steel traders who used their steel as collateral.
from one of your links...
Sounds awfully painful to be a real estate "investor" in China now and for the forseeable future. Of course many here understood this since 2010 when the first images of ghost cities and ghost malls emerged.
All the commodities were bid up like crazy because the Chinese were building like there's never anymore building allowed in the next decade.
I've said it before. The Chinese take the cake as "real estate" morons.
" in 35 major cities new residential supply of 21.38 million square meters, an INCREASE of 10.2% MONTH-OVER-MONTH, this is the highest single month increase in supply this year, indicating that the market is gradually speeding up the rhythm of bringing properties to market."
Well, on the upside, once the CIA starts ramping up its destabilization efforts in China's west/northwest, there might be a lot of people looking to relocate.
We ought to give them plane fare to Detroit.
I don't think the CIA has ever stopped or scaled back its destabilization efforts in China, or anywhere else ... Ukraine, Russia Syria, Libya, Iran, Sudan, Yemen, Nigeria, Congo, Cuba, Venezuela, N.Korea, Pakistan, Vietnam, Thailand, Burma. And why not, China and Japan are subsidizing US subversion efforts with their purchases of US treasury bonds. On top of that, the US can print free money at will.
Back to Detroit, I've heard the Chinese are moving in already. They are saying that Detroit is similar to run-down Chinese cities after the Cultural Revolution or the Chinese Civil War.
For fuck sake. The chinese are even make our housing bubbles now.
its like leasing/buying a car in the U.S. 0 down, 0 first month payment, 0% apr.
Was that photo taken somewhere in Beijing? Or Harlem?
They should have hired a few Saudi Pilots to hit the buildings with aircraft so the jet fuel and office furnishings would get hot enough to melt the steel and the buildings will collape straight down instead of that mess.
Great picture! Are there any Mandarin speakers on this list who can translate the characters on the tops of the buildings? (Yeah, yeah, I know: "Ho Lee ...")
who can translate the characters on the tops of the buildings?...
I'm not sure, but I think it says something like "now reduced..."
Always trying to understand - they want people to go in to debt to save the country from going into debt, but since the people in debt can't pay their debts where does that leave the country with it's debt?
Fucked?
simple, they just get a loan from the IMF.
With just a couple of "conditions."
Look to what was done to Russia under Yeltsin... actually, what Putin managed to do was remarkable and laudable. He's basically taken shit for disgorging the oligarchs and rolling back US NGO influence.
This doesn't mean there is no corruption in Russia - it is rampant.
But less than what it was, and the Russian people are less fucked and robbed by the usual suspects than they were in 1998, or for that matter, 1918.
where does that leave the country with it's debt?...
"There you go again"
I sometimes wish those with intelligent questions would kindly leave the thinking to the Drs. and Nobel laureates among us. It gets quite tiresome to weed these threads out of the massive information gathering we’re paying the government to do on our behalf.
jmo
Don't worry...
"Watt also announced he was loosening rules that have forced banks to buy back billions of dollars worth of flawed home loans they sold to the two mortgage financiers, a move designed to spur the housing market."
http://www.bloomberg.com/news/2014-05-14/watt-reverses-efforts-to-shrink...
The US is headed back there.
How much for role shitty... Central Planning special, everything must go
https://www.youtube.com/watch?v=GpnoPhY1f70
What's the climate like? I'm looking for an ex-pat location
Fuzhou has Good climate just like Florida hot and humid, due to its proximity to Taiwan it was labeled potential war zone therefore the region was never choose for any earlier manufacture locations which resulted in its good air quality. Like wise whoever buy a place there be prepare to know were your bunker is located you will be needing it anytime Taiwan and China have a major spat. Did I mention it has good air quality?
L.A. has good air quality compared to Beijing. No, thanks.
Call Simon Black. He is the man of the world with a dozen passports on every continent. He will give you the hookup. /s
I'm guessing very, very foggy.
It's not fog; it's a combination of smokes from coal fired power plants, American/European/Japanese/Chinese factories, legal / illegal burning of various stuff by Chinese residents, and dessert / sand dusts due to deforestation during the Mao era.
Maybe they're burning people. Mass cremation plants. Who'd know any different?
Meanwhile, here in the US, my car dealer is offering "Zero Down, Same Monthly Payments" if I trade in my car.
China is punting the beach ball back to Janet Yellen.
Here we go again moar subprime loan!!
It is my understanding that they do things differently in China. The banks don't control the money supply and run the government like in the USA. So, maybe, because I really don't know, they have a plan that will work. After all they kill the fraudsters over there, while here in the US they get elected President, and are appointed to head the Department of Justice and the Treasury, et. al.
No money down? I'll take all you got!
Would not want to live in China if they paid me. Same goes for any sane person. Bearish on everything China except the food (except for that glazing thing they do..fuck that)
you don’t really want to eat anything grown in China. Last time I visited there 30,000 hogs floating in the river and I saw plenty of locations food was grown in roadside ditches and other areas where there was sewage run off.
It hasn't gotten to the point where you can get Home Titles in a box of cereal - close, but not quite there.....
Rait! Preaze stay! Re rill tleat you betirr. Rook! Flee intirrnet!
Nice to see the Chinese knocking down those old buildings to put up new ones over-night.
If it comes with one of these Chinese broads in the ads on here, I'm in.
heh,heh,heh...
NO LOANS == STABLE ECONOMY
LOANS == PREDATORS GET RICH
Not much of anything else to say... except virtually no place on the planet has a natural, healthy economy any longer. The planet is completely run by predators.
Who the hell would want those "homes" any way!
The UK used to offer 100% mortgages. Their economy is growing 1.3%, the towel folder has produced an election miracle!