Prices really high up

 Prices really high up

property prices has been the most sensitive nerve. Soaring housing prices, housing difficult problems will be difficult to buy a house become a constraint to improve people's living standards is an important factor. In recent years, many of the ministries issued a policy to curb housing prices, house prices are still up, up, up. I think that this rise is normal? Whether people can afford? Government, developers, financial institutions, consumers deal with the relationship between the four was appropriate?

basic necessities of life are the people of the four basic elements. Through a simple calculation to analyze the four expenditure accounted for the proportion of disposable income people. Chengdu, for example, January-April 2006, per capita disposable income of urban residents was 4,344 yuan, an increase of 8.3% cumulative average monthly per capita disposable income of 1,086 yuan. Among them, the food expenditure of 283.75 yuan per month, per capita disposable income account for 26.13%; clothing expenditure of 84.5 yuan, accounting for per capita disposable income of 7.78%; transport and communication expenditure 117.75 yuan, accounting for per capita disposable income of 10.84% (Chengdu Bureau of Statistics). Chengdu, the first quarter of 2006 the average housing price 4316 yuan /?, Rose 7.5% over last year (in the new Hainan network), lower than the per capita disposable income growth rate. We assume that an ordinary working-class families have three people, with a 80? Of housing, the housing market so this price is 345,280 yuan, according to existing regulations, this housing ownership is at least 70 years, we have assumed that this housing is the only family living space, to borrow the straight-line method of accounting for its depreciation, the per capita monthly expenditure on housing was 137 yuan, accounting for 12.62% of disposable income. Basic needs of the cumulative expenses to 57.37% of disposable income, of which the largest proportion of food expenditure, followed by housing, transport and communication, clothing. Indeed, with economic development and price increases, per capita disposable income of residents will continue to grow, and the same fixed monthly housing expenses, therefore, spending on housing accounted for the proportion of disposable income will continue to decline.

can be seen from the above analysis, the average monthly housing expenditure to account for the proportion of disposable income is not large, but why do people buy a house the difficult problem of housing is difficult to actually exist? This is because due to the special nature of real estate. The characteristics of real estate is more complex, both the benefit, the benefit period of up to 70 years, often involving several generations. Before the housing reform in China, housing owned by enterprises and the state, and to allocate the benefits to the people to use, people pay only a small amount of rent per month can live,UGG shoes, people do not need no awareness of their savings to build housing for themselves, However, housing reform, the implementation of the privatization of residential housing property rights, businesses will be employees of the housing market, in addition to housing reform as part of the common people can enjoy the preferential policies, most people have to live through the market to purchase buildings, on the one hand, Whether the older generation, or the younger generation, have no capital accumulation, on the other hand suddenly appeared a huge demand for funds, coupled with the real estate field in a single housing structure, the number of housing demand, the Chinese people's preference for property rights, China densely and other reasons, there have been difficult people to buy a house difficult issues of housing.

currently on the market, there are two payment options available to people, one time paid in full, the proportion of the total purchase would account for about 30% or less; the second is the use of bank housing loans, 70% of buyers are selected in this way, therefore, the purchase price paid to developers can be divided into paying back the principal and interest on loans paid to the bank. In accordance with the Bank's existing individual housing loan business, generally 3 percent down payment, 20 year repayment, the loan interest rate is 5.751 percent, the monthly repayment amount of 10,cheap UGG boots,000 RMB loans was 70.21 yuan, followed the example, the amount of down payment can be calculated as 103 584 dollars a month for 1696.95 yuan, 20-year cumulative to 510,852 yuan to pay a mortgage, including interest paid amounted to 165,572 yuan, accounting for 32.41% of the total purchase money, the monthly repayment amount of a family of three months total disposable income 52.1%, exceeding the monthly disposable income of households more than half of which is bound to make the whole family back for 20 years a heavy debt burden.

I propose the following solution to the problem a number of ideas and we can discuss

⑴ clarify the government,UGG boots clearance, financial institutions, developers, consumers, the relationship between the four. The cost of housing reform to be shared by the whole society, rather than the entire cost of housing reform are passed on to people who. In the four games of the main people in an absolutely inferior position, the real estate market, the market mechanism in the natural process of reform and the cost passed on to all the people who, however, the Government should foot the bill for the reform, at least part of the reform should bear the cost, if the Government complete the housing market but also a stake in the reform (such as through the sale of state-owned land use rights for land transfer), must give the people a heavy financial burden. Strict government can establish a sound audit system of individual housing, the distinction between investment in real estate and personal living space, the Government should intervene to establish individual housing loan business, the only residents living on the purchase of houses, property as collateral can reduce the loan threshold to reduce the amount of down payment, the implementation of individual housing loans low interest rates or even zero interest rate, the upper limit should not exceed the personal savings rate, and extend the repayment time; for re-home buyers or real estate investors by raising interest rates and tax rates, etc., to suppress the real estate bubble and real estate speculation and protect the normal real estate market transactions.

⑵ reduce housing construction costs. Developers to pay the land transfer costs accounted for more than half of real estate development, developers are generally obtained through the government auction of land use rights, the highest bidder. Land from the Government, it is a revenue can be useful when the local government to become the largest real estate market trader. This fully market-oriented behavior makes no matter how high the land transfer, the burden of the final cost will be executed by the people, the developer is only required to maintain its profit margins to improve sales price on the basis of it. Government should strengthen the development and use of land management, refining the land market, land used for residential housing prices or the Government should implement the transfer price agreements, acquisitions and consolidation of government land for the lower cost and lower than market prices, lower real estate development costs.

⑶ explore a wide range of housing patterns. The current structure of the domestic real estate market a single, almost all been commercial monopoly, people can choose less space, and insufficient market segmentation, supply structure, a larger asymmetry, which is one of the real estate market imperfections kinds of performance. A complete performance of the real estate market is the most basic levels of consumption to meet the different housing needs of consumers, so that each consumer can find in the market for their own living model, to give every people all live in private housing instead of allowing each people must have their own housing. By studying the structure of different levels of consumer spending, consumer spending power of its different proportion of rental options to explore a combination of a wide range of housing patterns. Encourage the development of affordable housing and low-rent housing, and gradually expand the market share of these two models. Explore new housing patterns, such as trying to housing finance lease, finance lease charges by paying the people in the form of access to housing, the right to use, reducing the burden of the people of the huge expenditure.

⑷ transformation of the Chinese people about money and spending habits. Due to historical and cultural reasons, the Chinese people's property rights to land and housing preference, and there is resistance on consumer debt, there is no means borrowing consumer spending power, there is no purchasing power through credit is to repay as soon as possible, to avoid risks from financial institutions point of view, but also shorten the repayment period, so to the people has caused tremendous financial burden. People should dilute the property rights awareness, but also live in rent, purchase is live, and so have sufficient economic strength too late after the purchase, according to overseas experience, 60% of the general people to purchase, 40% renters . Strengthen their financial awareness,bailey UGG boots, consciously create a personal housing savings fund and the expenditure of the former can be used for low risk investment, access to certain benefits; should not refuse to bank credit, choose their own credit models, so as not to self-inflicted temporary significant economic burden.

of: the official peak Source: Southwestern University of Finance and Accounting Institute