• FrogFractions [he/him, comrade/them]
    ·
    edit-2
    1 year ago

    In China they have rules that aggressively favor owner-occupiers.

    Eg if you want to buy a second property you need to pay 60% cash up front and can only borrow 40%, and for a third or subsequent property you can’t get a mortgage and need to pay cash.

    This means being a speculator in existing housing stock isn’t attractive since it locks up so much capital - and so speculators have instead invested in new builds which is why there has been a bubble in construction, but at least it means for the existing housing stock is largely an owner-occupier market.

    There are also special funds specifically for saving for a house, kind of similar to a 401k, that you can put your money into as a savings account and your employer has to match your contributions.

    • usernamesaredifficul [he/him]
      ·
      1 year ago

      also sometimes the Chinese state will just seize real estate if they feel like it. So if you do lock up capital in landlording in China there is a risk they will just take that capital