Ok, just before you go like, dude, come’on.
I know, many of us here, who are involved in a little local business are aware the the country is wasting infrastructure money on purpose.
And uncovering in the article means in general, one guy was pocketing to much, maybe flaunting his or his brothers in laws riches with fast cars and big mansions, so that his buddies got jealous and/or upset and busted him for it.
But wait, after being cynical, read the numbers people.
It’s big, and going back to being cynical, it’s probably still just 1/10th of the shadow economics real numbers.
Ignorance is bliss 
!
To the Links
the Article.
Real Estate, not the big over investment problem in China
The Oxford Review Paper:
Survival of the unfittest, why the worst infrastructure gets built and what we can do about it.
Filed under: China Real Estate, Economy, General News, International News | Economic Research, Economy, Funny, Infrastructure, Joke|No Comments
Midnight rambling about what’s been keeping me up.
So there is this thing going on these days, I’ve been in between a quite famous shanghai landmark sale for weeks, and could never really quite figure out why nobody else snatched it up before.
My client and I have been negotiating, and reading the financials, and in the end we figured it’s quite the deal we got on our hands.
Then, when something is to good to be true, you’ll find the catch, the Buildings lease (”ownership”) expires in 7 years.
A friend of mine pointed out that they’re selling because the government won’t renew the “ownership”.
I researched, and this rumor has been going around, and there might be something to it.
This brings me to question once again, one of Shanghai Real Estates biggest question marks.
What happens if the 70/50/30 year period on the ownerships expire?
Most people always assume there will be some kind of heavy tax you’ll have to pay, but it was always far out, and we all considered the possibility of the government taking back the property and the land it owns.
Yet, it was a long shot, considering the kind of fire that could trigger, think about it, it takes longer than 30/50/70 years for those properties to pay off (without capital appreciation).
Up until now, the city reclaimed property by negotiating a deal, and paying the “owners”.
I’m curious to see how this problem will solve, my client has already backed out, and it seems like the sale is in full process with three negotiating buyers.
In general, I would imagine the real estate bureau in shanghai blocking a deal on the property that is to be reclaimed.
Yet the seller would know this, and the banks in charge of the lending would have told us.
Funny world Shanghai, the thriller has yet to unfold it’s last act.
Filed under: Rumors, Shanghai Real Estate News | Funny, Property, Shanghai Real Estate, Taxes|No Comments
Stay Tuned