Homebuyers cautious of taking the plunge
(China Daily)
Updated: 2006-07-28 08:42
But an ad for plush apartments in a new development caught his eye not long
ago and once again inspired him to upgrade. Only one thing stopped him from
buying the 200-square-metre apartment in an upscale residential district: the
high deposit required for mortgage financing.
In line with the
government's clamp down on excessive speculation, banks have raised the minimum
down payment for mortgage loans to 30 per cent of the total property price.
Previously the minimum payment was 20 per cent.
Fang said he doesn't
have enough ready cash to pay such a high down payment and he is reluctant to
sell his current home in a weak market. "I haven't made a decision yet," he
said. But "I think I may have to put the whole thing on hold for a while
You never know, the price may come down tomorrow."
Shenzhen
In
Shenzhen it is a similar story. Yang Qing, a government employee in her 30s,
said she and her boyfriend simply can't afford the 30 per cent down payment to
obtain a mortgage loan. "We are already paying 1,200 yuan (US$150) a month in
rent where we live at the moment," she said. "It is a big chunk of our combined
income and after rent and paying for essentials we have very little left over to
save."
Fang Shan, a 28-year-old white-collar worker at a multinational
company in Beijing, and his fiance, have decided to press ahead with buying an
apartment regardless of market uncertainty. "Property prices in Beijing will not
come down," he said. "No matter what the government does, high demand will keep
prices up."
And he has no time to wait for the market to prove him wrong.
"We have got to buy an apartment before we get married," Fang added. "This is
what we both want."
Fang said he has been sharing an apartment with a
colleague since he came to work in Beijing two years ago. His fiance is also
sharing an apartment with her friends.
(For more biz stories, please visit Industry Updates)
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