5 Types of People Who Want Home Prices to Drop

People are the same all over the world. Higher asset prices are good, the result of beneficial forces working to help the public. Lower asset prices are the work of nefarious elements with selfish motives. As the article below states:
However, one wonders, why hype a real estate slump? In the end only one word: profit.

The five groups are: people who want to trade up; people who don't have homes, which includes most young people; the third group are those with idle cash hoping for an investment opportunity; the fourth are people hoping to attract eyeballs with housing market forecasts that turn out to be correct; the fifth group is real estate developers hoping to buy out their competitors.

I'm disappointed in this list. I can think of several more groups. One, terrorists. I bet the Xinjiang terrorists would like to see house prices fall. Two, foreign hedge funds. Three, foreigners who are jealous of China's rise. Four, foreign governments trying to weaken China. Five, anarchists. Six, people with psychological problems. Seven, Luddites who want people living in grass huts. Eight, Austrian economists looking to prove their wacky gummy worm theory of a boom bust cycle. Nine, counter-revolutionaries. Ten, Bo Xilai.

炒作房价暴跌者不外乎五类人群 无房者不要太天真
Prices fell, the recent real estate crash has almost become a consensus of public opinion. As everyone knows, this could be a bluff hype. Manufacturers have been a real estate pricing is high, the so-called price inflated price just dropped. Also some real estate developers in the sale of certain houses left in the final sets, as settled as soon as possible, they cut prices to sell. These cases but was media hype as prices fell sweeping across China has become the tide, unstoppable.

History of human development has proven in the industrialization process, the real estate collapse never happened only after the completion of industrialization, urbanization rate reached 70 percent, especially after the condition of the real estate bubble will have generated. Since then, the demand for housing dropped significantly. China also is in the process of industrialization which, real estate does not have the possibility of collapse. Some people take the real estate bubble in Japan compared to China and Japan but not in the same stage of development, there is no comparison.

However, one wonders why such a hype estate slump? Bottom up only one word: benefits.

Any kind of speculation, are out of the need of self-interest, no interest, no one has leisure to bother to crap. Now, to find out who is in the hype prices fall, as long as the interest from the point of view to analyze, we see a clear picture.

In fact, speculation prices plummeted, no more than five people: a class of people are those who need to improve housing, expect prices fell after wards. Another crowd is no housing, or most of the young, which some people are eager to prices plummeted, so they can afford housing, living abode to live a dignified life. The third category is people who have spare cash to seek investment opportunities in looking after prices plummeted. The fourth category is to predict academic experts and scholars conducted in order to earn the eye. The fifth category is real estate developers, some developers also speculation prices plummeted, so people do not seem to understand, in fact, they are looking forward to take advantage of prices plummeted, to achieve its mergers and acquisitions, eat small real estate developers, scale, and thus monopoly market ambitions. Of course, in these five groups, the most desired housing slump is no housing. Well, now's really no housing at affordable prices fell even get crash in it? Until then you can really afford to buy houses?

Houseless families can look forward to the idea of the purchase price drop can be understood, I even look forward to strong support for this population, so everyone has their homes and live in peace. Some years ago, I even call on the establishment of "a suite household" system in China, all residents of the family unit may only have the opportunity to give a housing or improvement of housing, and never able to enter the house as an investment goods market, because people will be less once the house as an investment product of speculation in the market, will inevitably lead to serious consequences can not clean up. However, today, one can only face high prices of reality, the reality withstand high prices, expect more speculation prices plummeted to change reality. But there are two major factors have to be considered: First, there is a rigid demand, two speculative demand exists. When prices drop, the first shot is by no means rigid requirements of those who really need housing, but those real estate speculators speculation, because they understand that the presence of rigid demand, which is speculators real estate giant space. Therefore, prices fell only to those speculators created opportunities, so it will inevitably lead to a second round of skyrocketing housing prices, the ultimate beneficiaries are not those who really need housing, but real estate speculators.

Meanwhile, the housing slump will inevitably lead to economic and financial crisis, all the Chinese people are the victims, but to varying degrees. Already rely on bank loans to buy people, if house prices fall, as the value of the house will be insufficient to mortgage loans secured by item, if buyers purchase loans 2,000,000 yuan housing prices fell last only worth one million yuan, and although repayment of 100 million, but there are one million yuan loans to be repaid. If you are unable to repay bank loans, the bank will auction off the house, auction prices are generally lower than the market price, may sell 70 million last buyers not only become houseless families, and it still owes the bank loans 300 000 million. This does not include bank interest. Of course, the most affected is the low-income groups, or people who can not afford housing, because the ability of these people to resist the worst inflation. Once house prices, rapid withdrawal of speculative capital real estate market, will cause currency devaluation, daily prices soaring. Those who can not afford housing prices fall but hope to people, in the hands of the currency becomes less valuable, life will be more difficult, and those rich, although ten million yuan to one million yuan devaluation, after all, still There are one million. As everyone knows, the one million yuan will have huge leverage, once the asset bubble burst, the one million yuan of assets will become more capital, has a huge profit margin. Remember, at any time, including prices skyrocketing housing prices fall, suffer the most are the ordinary people, how much money is no capital groups.

No room can not think too naive, do not think you can afford to buy after prices plunged house, not to go along with the hype housing slump and create opportunities for those real estate speculators. Prices do not fall down, the market have the final say, we can go to attention, but do not intentionally go follow suit hype. Young should be renting, first venture, not because now all join together to buy a house, but can not buy a house and join together in the future because all but a lifetime working for the bank, so that the loss of venture capital and the ability of human freedom first Financial freedom is to be no financial freedom, other freedoms are alone, not only will never get out alive, but can not get rid of wage fate. Of course, people can never own homes, there is no room to house the situation is completely different, of no fixed abode, is a nice bum life in general. The only expectation is to strive to buy low-cost housing provided by the government, to be in the future to create enough wealth after go according to their own preferences and ideas home to buy real estate . However, the government provides cheap housing seems utterly inadequate, the sun can not shine every individual. Only in the struggle to create more wealth is the most reliable, followed by speculation prices plummeted, the result is to push yourself a victim of the situation.

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