Pay cash for a million dollar house
By scheng1
@scheng1 (24649)
Singapore
February 14, 2016 11:34pm CST
Many people have not realized how rich the rich Chinese are.
That is until the rich Chinese start to buy houses and apartments in big cities in their countries.
It is not common for the Chinese to pay just 10% down payment, and take 90% mortgage.
It is more common for them to pay the bulk of the purchase or all of the purchase in cash.
If you can imagine paying cash for a million dollar house, you will realize that the rich Chinese has a deep pocket.
In general, the Chinese are very averse to high debt level.
They rather pay more in cash, and have little debt.
When RealtyTrac released its latest home sales report, "which shows single family home and condo sales through August were on pace for an eight-year high nationwide and in 110 out of 204" it was something else that caught our eye. According to RealtyTrac p
9 people like this
6 responses
@youless (114117)
• Guangzhou, China
15 Feb 16
This is why in some big cities like Beijing, Shanghai and Guangzhou, they will limit people to buy more than one house. Namely even if they are so rich, they can't buy one more house. Of course you can sell your current house and buy a new one. And that's all you can have. This is a new rule carried out several years ago and many cities in China don't have this rule any more.
5 people like this
@scheng1 (24649)
• Singapore
15 Feb 16
I think the rich are not interested in buying many houses in China.
It is too risky to put so much money in China, so they buy houses in US, in Australia, and in other countries.
If they do not want to retire in those countries, they will sell to lock in their profits.
4 people like this
@Auntylou (4262)
• Oxford, England
15 Feb 16
Yes dual home owning by the rich over here means that ordinary people from pretty villages are priced out of the market. In Wales a few years ago many second homes, left empty over the off season, were burnt down by Welsh Nationalists !
2 people like this
@Marilynda1225 (91127)
• United States
15 Feb 16
When I sold my house in New York a few years ago it was bought by a Chinese couple and yes, they paid cash.
5 people like this
@Marilynda1225 (91127)
• United States
22 Feb 16
@Auntylou actually none of their cash went into my hands. It went straight to the bank to pay my mortgage and the leftover was given to me in a bank check. Since the transaction went smoothly I'm sure their money wasn't counterfeit
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@Auntylou (4262)
• Oxford, England
21 Feb 16
Were you not scared to be so paid in case it was forged notes @Marilynda?
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@divalounger (6182)
• United States
11 Mar 16
Both the Chinese and Japanese tend to save more money than we do. A higher savings rate can lead to less debt--very interesting !
@scheng1 (24649)
• Singapore
15 Feb 16
Not all Chinese are heavy gamblers.
Chinese are known for their excellence in Maths.
They sure are good with numbers and money management.
I just wonder how they make so much money as to buy houses with cash!
The exchange rate means that they have to use 6 RMB for a dollar, yet they can pay cash.
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