Crazy house 3

 

Another reason for China's rising house prices is that everyone's money is invested in real estate, just like the Dutch tulip fanatics many years ago. Everyone thinks that after buying a house, the price will rise and bring a lot to themselves. Profit.

In particular, the Chinese have an inexplicable love for the house. They think that as a property and a heritage, the house is a good choice, and buying stocks cannot make money.

The Chinese economy has also encountered problems in recent years. The efficiency of state-owned enterprises is low, and the operating costs of private enterprises are high. This is not as cost-effective as building a house and buying a house.

The government is happy with this, and we have analyzed it before. Selling land brings huge profits to the government.

Similarly, people who carry house loans are more able to work hard and are better for social stability.

As a result, people continue to buy a house, the more they increase the price, the more they buy. Finally, the price has risen to the bottom that ordinary people can't afford.

China's big cities have closed their doors to young people. They are not only difficult to buy a house, but even their rents have risen to an unacceptable level. In desperation, they have to return to their hometowns.

Because of this, the former cheap workers, such as couriers and restaurant service staff, are also increasing. If they do not raise their wages, they will not be able to pay the rent, and the cost of living in the big cities is increasing.

After a large amount of money has been invested in real estate, people have been unable to consume, and small enterprises have been unable to maintain production. Now the government is leading the economic transformation, and various policies restricting overheating of real estate are being formulated and implemented. At present, housing prices have been stable.

In the past, similar real estate overheating occurred in Japan. Later, the Japanese economy suffered a major setback. Almost all Chinese are worried that if the house price falls, the economy will be affected. If the house price continues to rise, the economy will also be affected. Real estate has kidnapped the economy.

I hope to have better results.