Developers and banks benefit from interest rate frequently difficult to control housing prices - and we cherish the fate ...

 Zhong Wei found that rapid increases in house prices, and not make loans to home buyers benefit, the real benefit is the developer and commercial banking side.
Financial Research Center,UGG shoes, Beijing Normal University, Professor Ren Zhongwei China Merchants Bank yesterday Community Bank Financial Education, lending rate was raised, the purchase of personal loans home buyers demand will inevitably decrease. the real estate market will be broken in short supply situation, prices will follow the fall. The end result is, despite the purchase of consumer loans more than a month also some interest,UGG boots, but compared to a significant reduction in house prices, consumers still get more benefits.
Zhong said, and now the real reason for high prices of commercial housing shortage is one of too serious. frequent interest rate increase,UGG boots cheap, the housing demand may be reduced, but developers will also reduce housing supply, followed by a the entire housing market decline. In the end though the amount paid by buyers may be slightly lower than the original, but compared with the substantial increase in interest expense, or more harm than good.
individual housing loans and consumer loans to commercial banks in various types of loans is also relatively safe assets, the default rate is only 2%, far lower than the corporate default rate of about 8% of loans. historical experience also proved that, although the decline in economic prosperity, there will be less than from housing loans to residents, but the default rate remains well below the company .
Zhong said. But he was not opposed to raising developer interest rates, relatively high default rate because the developers.
Zhong Wei found that rapid increases in house prices, and not make loans to home buyers benefit from the proceeds of the real party is the developer and commercial banks.
he said, a value of 50 million houses, home buyers need loans at least 35 million, assuming 20 years to pay off, with interest its still at least 700,000 yuan. In other words, even if the 70% appreciation of housing units, 85 million sold,cheap UGG boots, buyers did not earn a penny, because the housing appreciation to all the money the bank interest also.