Quote:
Originally Posted by Rochard
There is a difference between costs being high, and costs being impossible. Here in the US you can buy a nice condo in the city for $500k or $600k, which isn't too bad when you are making $60k to $100k a year. In China... They want $300k for these pads, but the average income is $6k a year. They want half down - $150k - and the balance due in three years. $150k down is twenty-five years of their average salary... That's impossible for the average person to buy, which is why all of these places are empty.
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What you say is true and the locals here would agree with you. But a just few points.
1) Those 2 million RMB apartments, are not aimed at middle income earners, they are aimed at the upper middle income - higher income bracket earners and those with "black money" that needs to be dumped somewhere (because the banks won't take it).
2) Family in China is very strong. They will chip in to help each other no matter what. If a son want's to buy a property so that he can get married to his girlfriend, the family will borrow, beg or steal to get him the funds to do so.
And yes I agree about the empty apartments, but the fact is (at least here in Sanya) they are all sold, just sitting empty. This whole island is a dumping ground for cash. Get fuck all return on it from the banks, plus they ask questions. Stock market is out, doesn't leave too many other places to invest it.
