Crazy house

China did not have a real estate industry before 1980.

The rural people at that time had their own homesteads and could build their own houses. At that time, urban people could distribute their houses through their work units. People at that time could crowd together in small houses for generations without feeling uncomfortable. .

Later, people in the city can no longer be assigned to the house. They go to buy a house. The price of the house is not expensive. Of course, many people can't afford it. Some people continue to hope that the work unit can give them a house, but then there is no longer. This is the case.

It turns out that in China, the ownership of land belongs to the state. The land that the peasants build the house is given free of charge by the state, but it cannot be used for trading. In the city, the rights of the house are divided into two parts, one part is the ownership of the land. This is the country. It is rented by the owner and part of the ownership of the building is completely owned by the owner.

The rapid development of Chinese cities, their roads, parks, subways and other public facilities are almost all built by selling land use rights. The bigger the city, the more money it needs, the more it has to sell land use rights.

Many cities in China have obtained a lot of money in this way, so they like this way, the price of land has risen, and the houses built on the land naturally have to rise in price, so the price of Chinese houses is 20 It has risen many times during the year.

The young people in China are gradually becoming self-reliant and unwilling to live with their elders, so they also want to buy a house. The result of many people buying a house is that the house continues to rise in price, in cities like Beijing, Shanghai, Guangzhou and Shenzhen. The price of the house even reached and exceeded London and New York.

This is a bit like the previous Japan. Later, Japan’s economy had a big problem, and China naturally could not escape.

Entrepreneurs who are engaged in industry and manufacturing find that building houses and buying houses and selling houses are more profitable. They don't want to continue to invest in production. They use profits to buy houses and build houses. Entrepreneurs who want to stick to it find that rent and land prices have become unbearable.

Real estate has kidnapped China's manufacturing industry and kidnapped people in China. People are now under great pressure. The Chinese have had a high amount of deposits, but now they are mostly on loans because they have to pay back their mortgages.

 

The current Chinese government is worried that the price of the house will rise too fast, and it is more worried that the price of the house will fall.

Ordinary people are waiting for it to fall, so that they can afford to buy a house, but those who have a house, and worry about the house price cuts, so that the value of their assets is reduced, the society has actually had a bit of potential chaos.

Crazy house!