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Think tank calls for new steps to support the housing market[1]- [Copy link] 中文

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Post time 2015-12-4 09:59:48 |Display all floors
Chinese homebuyers look at models of residential apartment buildings during a real estate fair in Shanghai, December 13, 2014. [Photo/IC]

Rising inventory of unsold units putting damper on investment

A top Chinese think tank said that homeowners should be allowed to use their mortgage interest payments to lower their tax liability, and that costs associated with buying a home be slashed to  ...

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Post time 2015-12-4 09:59:49 |Display all floors
The housing market should never be lightly tempered with as it is a major pillar of a nation's economy. In China's current case, I would suggest that for first time buyers, the entire mortgage (interests and principles) should be tax exempted i.e. treated as a deduction against future income. This will greatly boost the entire chain of the housing industry solving in the process over capacities in related industries such as cement and steel. A win-win solution indeed.

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Post time 2015-12-5 09:39:46 |Display all floors
Just let the market decide the price equilibrium.  By any mean of subsidizing the market, it will only make price stay at a unsustainable level longer.  If the concerns of falling housing price are the health of housing market and it in turns hurts the economic growth.  The same resources should be allocated into a more meaningful areas, such as renewable energy.  Or simply pulling the fund to invest in technology and knowledge.  I might exaggerate a little but I don't want to risk being any country which suffers from habitual recession like Japan.  So, I would like to see government policies concerning housing market helping the price to move back to the equilibrium.  In short, with all due respect, I just cannot agree with the think tank this time.

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