4 ms·

Reminded me of how, from my understanding, citizens of China don't own their property when they buy a 900 sqft condo for $900k minimum - they're just getting a

by loceng 6y ago

Reminded me of how, from my understanding, citizens of China don't own their property when they buy a 900 sqft condo for $900k minimum - they're just getting a 70 year lease on it; built in scarcity with no real chance for citizens to increase their own or their familial wealth - unless you're in the CCP hierarchy of course.

powerapple 6y ago
You do own the property after purchase, just not land. You lease the land. After 70 years, you will need to pay for the lease again, it automatically renews. I believe it is set to 2% (too lazy to do research now). About the price, it varies a lot depending on city and area.
Barrin92 6y ago
Same is true for Singapore, you buy effectively a 99 year lease that gradually returns to the government. It's actually a pretty brilliant policy that strikes a good middle-ground between giving individuals stake in the country without losing sight of the public interest to maintain control of land ownership. This sort of combination between state control and individual ownership is vastly preferable to the patrimonial wealth acquisition in the US, which gives private interest groups extraordinary power at expense of both individuals and society at large, and it's an effective mechanism against generational inequality and it avoids creating a society dominated by heritage.
hungryhobo 6y ago
hmm if chinese citizens had no chance to increase their wealth, how did they drive up housing prices around the world? Isn't the narrative that hot money from China was the cause?
- loceng 6y ago
  What % of Chinese citizens do you think are investing in foreign property?
  - hungryhobo 6y ago
    What % of us citizens are investing in foreign property? Is that a good indication of wealth? The claim that chinese citizens had no way of gaining wealth is fundamentally false and kinda absurd. If you look at chinese consumer spending for the last decade it's been growing at 6-8% annually, are you saying all that spending is done by only CCP officials?

by loceng 6y ago

powerapple 6y ago

You do own the property after purchase, just not land. You lease the land. After 70 years, you will need to pay for the lease again, it automatically renews. I believe it is set to 2% (too lazy to do research now). About the price, it varies a lot depending on city and area.

Barrin92 6y ago

Same is true for Singapore, you buy effectively a 99 year lease that gradually returns to the government. It's actually a pretty brilliant policy that strikes a good middle-ground between giving individuals stake in the country without losing sight of the public interest to maintain control of land ownership. This sort of combination between state control and individual ownership is vastly preferable to the patrimonial wealth acquisition in the US, which gives private interest groups extraordinary power at expense of both individuals and society at large, and it's an effective mechanism against generational inequality and it avoids creating a society dominated by heritage.

hungryhobo 6y ago

hmm if chinese citizens had no chance to increase their wealth, how did they drive up housing prices around the world? Isn't the narrative that hot money from China was the cause?

loceng 6y ago
What % of Chinese citizens do you think are investing in foreign property?
- hungryhobo 6y ago
  What % of us citizens are investing in foreign property? Is that a good indication of wealth? The claim that chinese citizens had no way of gaining wealth is fundamentally false and kinda absurd. If you look at chinese consumer spending for the last decade it's been growing at 6-8% annually, are you saying all that spending is done by only CCP officials?