90% of homes are owner occupied, but people don’t always want to own where they live. seasonal workers, traveling / long term stays, young people figuring their shit out, etc. there are restrictions on putting a place up for rent in china, last i read. the state takes a third of your net and the home itself has to be brought into compliance for energy efficiency and accessibility. the state will extend very low/no interest loans to make these improvements. and if one decides to sell the place, the state takes a third of the increase in value. i think there’s some kind of mechanism to pay down the construction loans with rents too.
i read some document like 3-4 years ago talking about the programs for this as a means to drive more home improvement, basically incentivizing people updating homes but not like in the US where it leads to speculation and flipping as a full time job among assholes. my understanding is there’s a cap on ownership of residences and the state taking a third of the gains while subsidizing construction loans and building a shitload of housing all over keeps housing prices from shooting up.
also, when housing isn’t such a critical asset for building personal wealth as it is in the US/UK/AUS, the calculus of jumping on the property ladder changes dramatically. if an energy efficient place could be had for 5% of my takehome pay in a nice neighborhood with access to civic features and they couldn’t raise rent on me, i can image a lot of people not wanting to fuck with owning and dealing with maintenance/repairs, etc.
i can image a lot of people not wanting to fuck with owning and dealing with maintenance/repairs, etc.
I have heard that a lot of landlords in China have some pretty unpleasant restrictions on renters, like they still consider the house to be their home, and don’t allow things like changing the decorations(not just the paint, but like photos or paintings on the wall), or don’t allow the renters to use certain rooms because the landlord uses them for storage. But I’d still probably rather rent from someone who is like “This is my house, don’t wreck it while you’re living here, because I want to move back in after you leave.” vs “This is my property and you’d better not do anything that causes it to depreciate in value no matter how hard it makes your life.”
90% of homes are owner occupied, but people don’t always want to own where they live. seasonal workers, traveling / long term stays, young people figuring their shit out, etc. there are restrictions on putting a place up for rent in china, last i read. the state takes a third of your net and the home itself has to be brought into compliance for energy efficiency and accessibility. the state will extend very low/no interest loans to make these improvements. and if one decides to sell the place, the state takes a third of the increase in value. i think there’s some kind of mechanism to pay down the construction loans with rents too.
i read some document like 3-4 years ago talking about the programs for this as a means to drive more home improvement, basically incentivizing people updating homes but not like in the US where it leads to speculation and flipping as a full time job among assholes. my understanding is there’s a cap on ownership of residences and the state taking a third of the gains while subsidizing construction loans and building a shitload of housing all over keeps housing prices from shooting up.
also, when housing isn’t such a critical asset for building personal wealth as it is in the US/UK/AUS, the calculus of jumping on the property ladder changes dramatically. if an energy efficient place could be had for 5% of my takehome pay in a nice neighborhood with access to civic features and they couldn’t raise rent on me, i can image a lot of people not wanting to fuck with owning and dealing with maintenance/repairs, etc.
I have heard that a lot of landlords in China have some pretty unpleasant restrictions on renters, like they still consider the house to be their home, and don’t allow things like changing the decorations(not just the paint, but like photos or paintings on the wall), or don’t allow the renters to use certain rooms because the landlord uses them for storage. But I’d still probably rather rent from someone who is like “This is my house, don’t wreck it while you’re living here, because I want to move back in after you leave.” vs “This is my property and you’d better not do anything that causes it to depreciate in value no matter how hard it makes your life.”