Skip to comments.Buy a House, Get a Free BMW! China Developers Are Getting Desperate
Posted on 09/13/2018 11:18:36 PM PDT by Zhang Fei
Seems a little gimmicky. Why not just cut the price by $40k or whatever their out-of-pocket is per car?
What they have is an overgrowth of housing construction, with houses/condos...sitting on the market for months and years. There’s a bubble sitting there and will be an economic disaster within the next decade.
“...further incentive: An initial down-payment of just 5 percent is required, compared with the usual 30 percent deposit required,,,”
It’s gonna get worse for then and eventually even better for buyer’s
Because they can finance the incentive and mitigate out of pocket incentives
1000 sq foot ? That’s practically a closet.
Anybody want to let me know where I short the Chinese bond market?
In Shanghai, several districts have 33,000 people per sq km... living space is at a premium.
(Most of the densest districts in most US cities top out at about 5000/sq km. NYC has 3 small districts that are over 40,000/sq km... but nowhere else in the US comes close.)
The big point is missing here.
Financially mixing short term car money with long term house is a disaster. A car financed over 4 even 5 years is irresponsible. Car debt financed in a mortgage is illiteracy.
A couple of interesting videos on the subject:
Sort of like what Spain did...and the bubble went POP!
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