7.21.09
In what appears to be an attempt to prevent overinflation/speculation in Chinese real estate, Chinese banking regulators are raising lending standards for purchasers of second homes:
Unlike US banks, which could lend to people with no money and no job (even to buy multiple properties), The Chinese have increased the down payment required to buy vacation homes to 40% and with an interest rate floor of 110% of the national base rate.
I didn’t mind more lenient lending terms here and I’m not saying this super strict model is better. I just have a problem when the prudent are forced by our government officials to bail out the imprudent using our tax dollars.
Chris Grande
