Don’t let the article title scare you. Or – then again, maybe it should at least raise an alarm.
Apartment properties in Beijing have doubled in just one year, and the government is worried that continued real estate appreciation (bubble speculation) might overheat their fragile economy (even though we have been told it is not a bubble).
This is what happens when the government nationalizes the banks that control the mortgage market. A government, for whatever reason, can then force the population to either buy, tell people where to buy, and how much to pay, depending on the whims of politicians.
Haven’t paid your social security payment? No apartment for you!
Owe back taxes? No apartment for you!
Looking to upgrade to a bigger home instead of an apartment? Ask your local commissar for permission.
It’s coming to America folks, and it’s as clear as day when politicians, and now Main Street, believe only the government can help the ailing real estate market.
The city of Beijing has issued rules limiting families to one new apartment purchase as authorities try to rein in rampant property speculation and soaring prices, state media reported Friday.
“For the time being one family can buy only one new home in the city,” China News Service said.
The capital’s government also ordered banks to refuse home loans to people who cannot prove they have paid taxes and made social security contributions in Beijing for at least one year, the report said.
Banks also have been told to block mortgage applications for people buying their third property, however it was not clear in the report who would be affected by this.
The rules marked the latest in a series of measures by Chinese authorities as they seek to reduce the risk of the red-hot property market overheating and derailing the booming economy. [source: Economic Times]
Of course, we could just be overreacting. The politicians in government would never dare do anything like what the ChiComs are doing, we’ve got a Constitution and all that, right?!