China Props Up Rental Market

In a bid to move idle housing inventory into service, the Chinese government may exempt the first 30,000 yuan of rental income from the VAT tax.

iFeng: 房屋租赁新政是真正的楼市供给侧改革
According to the Beijing News reported a few days ago, the State Council issued the "Opinions on accelerating the cultivation and development of the housing rental market," and proposed the formation of the housing rental market in 2020, three perfect security system and regulatory regime. It is noteworthy that, after the renovation of commercial space can be used as rental housing is written "opinions", individual rental housing monthly income does not exceed $ 30,000, before the end of 2017 may be exempt from VAT.
Rising rents are seen as fueling home purchases. Yet while the central government would like to see affordable home pricing, developers and local governments aren't interested in falling home prices. The central government will have to tackle this issue if it wants to see a consumer economy grow, however, since high home prices fuel investment. With lower home prices and lower rents, Chinese would have more disposable income for consumption.

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