Beijing Millennials Crowdfund Home Buying

The rise in Beijing home prices is being called the "fatal blow" to Millennials, for whom home ownership may be permanently out of reach. Instead of giving up though, some refuse to fall behind and have instead started crowdfunding home purchases.

Beijing still has relatively strict restrictions on home purchases. Individuals can buy only one home, married couples two. Migrants must live, work, pay taxes and into the social security system for 5 years, and then can buy one home. For people without the money, or without the qualifications, watching home prices run away is crushing their dreams of home ownership.

"Watching Beijing's home prices go up day after day, I have an anxious heart." A cultural heritage protection worker Mr. Zhuang told reporters, although he grew up in Beijing, but he does not have a Beijing hukou, "I used to think small, didn't think to buy a house, waited until I was working, and then Beijing restricted buying."

...These college graduates like Mr. Zhuang also makes this type of college graduates worry, "Looking at soaring house prices I was really worried, in accordance with the policy of Beijing, I need to pay social security for 5 years to buy. Five years later, can I still afford it?"

Mr Zhuang told reporters that he planned together with two friends on "crowdfunding" a house, "I have a good friend, he had Beijing hukou, but he was still a graduate student, didn't have the money. I had just graduated, not much savings, so we consulted with another good friend, the three of us plan together to buy an apartment and wait for appreciation. A few years later, I was qualified to buy, this house was sold."

It is understood that Mr. Zhuang and his friends in the vicinity of Chaoyang District, Anwar Qiao bought a 40 square meter existing home, sold for nearly 2 million, after taxes everyone had about about 700,000 yuan. Meanwhile, before the purchase, Mr. Zhuang with friends signed a joint purchase agreement, the sale conditions are: after 2 to 5 years, and at least two investors agree.

Mr. Zhuang was not driven to invest out of greed, but fear. Fear of never being able to buy a home.

However, the reporter was still wondering, Beijing housing downside risk does not exist? Why were Mr. Zhuang and his friends so assured real estate would appreciate?

In this regard, Mr. Zhuang told reporters that he does not want real estate, but do not want home prices to hinder his life, "Actually, I do not know Beijing house prices will continue to rise, some people say that this is the real estate 'final carnival,' but I can not watch prices push me dead, since I was young I lived in Beijing, I'm accustomed to here, I do not want to leave. So, if the house appreciates, this house will be the basis for my future independent buy; If the house falls in price so much the better, because when I am a qualified buyer, I can afford it. Besides, now I have some savings, so no matter which way housing prices go, I can participate, even if an investment it is better than buying stocks right? "

In addition to fear of rising prices, investors have few places to put their money. A lawyer explains an important point: if buying jointly, all the names must be listed on the property. If not, even if there is a joint purchase agreement, the property is individually owned and the owner would only be required to pay back the money contributed by other investors.

The other big risk come from those using leverage. For example, this example from Wenzhou in 2012: Wenzhou group home specualtors totally defeated, lost their life savings, have no choice but to run

NBD: 北京90后众筹炒房团：升不升值都应该出手！