So you were eying that beautiful little bungalow in Shanghai or perhaps a country estate in Hangzhou. Maybe you had your eye on a rental property in Jinan. Not so fast. According to Reuters, China is moving to prevent “hot money “ from causing real estate prices from rising too fast.
“Relevant departments must enhance monitoring of loans and cross-border investment to prevent illegal inflows of capital into the property market and to avoid the impact of overseas hot money on China’s real-estate market,” the cabinet said.
Concerned that a property bubble could stir social and economic instability, Beijing has vowed to combat overly fast price increases, although its moves to date, such as restricting sales tax exemptions, have been relatively mild.
It reiterated that it would curb house buying for “investment and speculation purposes” and keep the minimum down payment for purchases of second homes at 40 percent.
I know, I know; I had already narrowed my own search down to a country villa in Ningbo and another in Xiangfan. No fair! Oh well, probably best to stick closer to home anyway. Besides, I don’t think my wife and kids were on board with the whole “move to China” thing, so it’s probably for the best.
I’ll stick to what I know best, which is Pleasanton, Dublin, San Ramon, Danville and the rest of the Tri-Valley. If you want to refocus your own efforts closer to home after this disturbing news, give me a call.