China Clamps Down on Housing Speculation
I have been suggesting a stiff capital gains tax on house flippers. Although the capital gains tax is minimal, it seems the Chinese have taken things a step further. We should follow suit.
The 16 banks operating in Shanghai yesterday agreed to stop making loans for homes that are being sold within a year of purchase to help cool speculation. The city government earlier this month imposed a 5.6 percent capital gains tax on such sales.
The People's Bank of China said on March 17 that it will require lenders to charge at least 5.51 percent interest for a home loan of five years or more, from 5.31 percent. The central bank also said lenders will be able to raise down payments on home loans to 30 percent of the purchase price from 20 percent in areas of excessive growth.
China Clamps Down
The 16 banks operating in Shanghai yesterday agreed to stop making loans for homes that are being sold within a year of purchase to help cool speculation. The city government earlier this month imposed a 5.6 percent capital gains tax on such sales.
The People's Bank of China said on March 17 that it will require lenders to charge at least 5.51 percent interest for a home loan of five years or more, from 5.31 percent. The central bank also said lenders will be able to raise down payments on home loans to 30 percent of the purchase price from 20 percent in areas of excessive growth.
China Clamps Down
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