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How do youngsters buy homes
By Liu Mo (China Daily)
Updated: 2006-09-05 13:34

Youngsters should rely on their parents to help them buy a house because of high prices, over 70 per cent of 10,000 online voters think.

The remaining 3,000 believe young people who have already graduated from university and have a job should pay for a house themselves.

The survey was conducted by a major real estate website www.focus.cn.

Eighty-five per cent, 86 per cent, 74 per cent and 88 per cent of people surveyed in Beijing, Nanjing, Chengdu and Tianjin respectively in another investigation conducted by the website said that it was common for young people to use their parents' money to buy a house.

One IT worker who has just bought a house before getting married complained that it would have taken him at least five to 10 years to make enough money for a down payment.

"By that time my wife to be would have left me," he was quoted by Ma Lei, an editor of the website, as saying.

Hu Jinghui, vice-manager of the 5i5j real estate company, also supported to use of parents' money to buy a house.

He said young couples do not have enough money to pay for down payments as they have usually worked for less than five years.

House price in cities like Beijing were also too high.

He added that to buy a second-hand house of 60 square metres in urban Beijing would cost around 500,000 yuan (US$62,000). Down payments and furnishing the home will cost 200,000 yuan (US$25,000) more.

Third, he said many families wish to reduce the amount borrowed as interest payments mount up.

Lastly, Chinese parents often help a son who is about to marry buy a house, he said.

However, Chen Xu, a Beijing-based lawyer, said: "A more reasonable course of action would be to first rent a house, then buy a small one and finally buy a bigger home."


(For more biz stories, please visit Industry Updates)

 
 

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