Perfection of Rebirth

Chapter 533 Who Says It Won't Go Up After the Big Rise?

The housing price-to-income ratio refers to the ratio of housing prices to the annual income of urban households.

The commonly used method of calculating the house price-to-income ratio in the world is to divide the median house price by the median annual household income.

Annual household income refers to the annual pre-tax income of all family members, usually including the couple.The median annual household income is also taken as the median.

In developed countries, the statistics of annual household income are very clear as long as you look at the tax records, but the situation in China is much more complicated
In accordance with international practice, the prevailing view is that the housing price-to-income ratio is between 3 and 6 times the reasonable range.

"First of all, your metaphor that the housing price-to-income ratio in the imperial capital is already more than 20 is wrong. Based on a set of properties worth 100 million yuan, the combined average income of a couple in the imperial capital should be [-] to [-] yuan. That's about fifteen."

"Even if it is fifteen, it is much higher than the internationally recognized ratio."

"The situation in the Celestial Dynasty is very special, and the imperial capital is even more special. At present, those experts who comment on the ratio of housing prices to incomes are nothing more than hoping that people can afford houses. In fact, some Western European countries where the ratio of housing prices to incomes is 2 to 3 times In the Nordic countries, the housing self-ownership rate is only about 30%, just like Switzerland, Germany, and Sweden. However, in the Eastern European countries with a high housing price-to-income ratio of 25-30 times, the housing self-ownership rate is as high as 90% For example, Hungary and Bulgaria. Let’s take a look at our neighboring island countries. Their house price-to-income ratio has been declining for many years. The U.S.’s house price-to-income ratio is also at a so-called reasonable level, but its home ownership rate has remained basically stable for many years , not much has changed. What does this mean? The so-called housing price-to-income ratio has nothing to do with buying a house or not,” Jiang Hui said while waving his hands.

"But look, not to mention other places, just around our school, when we first entered college in 2003, the average price was only five to six thousand, but it has doubled now. Is it possible that it can continue to rise sharply? With such a high housing price-to-income ratio and a limited rate of increase, it is a thankless task to motivate employees to buy a house.” Tang Minghua and Jiang Hui have a close relationship, and they are often straightforward when talking to Jiang Hui, especially when he thinks Dare to say things that are good for Jiang Hui even if they don't sound good.

"Who said it can't continue to rise sharply? Don't always listen to the opinions of the so-called brick houses. The housing prices in China have never conformed to the theory that brick houses call beasts. In foreign countries, a house is a house, more like a consumer product. But in China, where is your household registration if you don’t have a house? Where do your children go to school? What do you do when you rent a house and get kicked out by the landlord every now and then? Will the woman ask to buy a house if you marry a wife? Will you feel at home if you don’t have a house in the city?”, Jiang Hui asked several questions in succession.

In China, if you don't have a house, you may be able to hang on to the company's collective account or the talent market.But children going to school will definitely be a big problem.Don't you see that there are all kinds of high-priced school district houses everywhere in the future. Isn't this because the children go to school and the house is related?
Let's talk about renting a house, let's not say that the landlord is going to sell the house or not rent it out, but will you accept a rent increase every year?How do you feel when you see that half of the monthly rent is paid?
As for getting married and buying a house, this is almost a must-have requirement for all mother-in-laws in the Celestial Dynasty.The "character" of the mother-in-law is a virtual character that is touted by development companies after the real estate market has developed to a certain stage.From "three bedrooms to four, bring in the mother-in-law" to "you don't want to buy a house unless you get rid of the mother-in-law", the mother-in-law has become the public relations object of many developers in the hype. The sound was checked by many people in real life.

In the past, the debate about whether to get married and buy a house or not has become no choice with the appearance of this "character"-because there is a mother-in-law, you must buy a house when you get married.

"Mother-in-law economy" has gradually become synonymous with "marriage room just needed".Jiang Hui thinks that assuming a social survey is done now, asking marriageable men what they should prepare first if they get married, most of the answers will be "house".This is beyond doubt, because there is no house, and the mother-in-law does not marry her daughter.

"Mr. Jiang, we have considered everything you said. It is precisely because of the reasons you said, coupled with the rapid development of the Chinese economy, that housing prices have risen sharply in recent years." Tang Minghua did not deny what Jiang Hui said, but I think prices have risen to a peak.

"If it has already risen sharply, does it mean that it will not rise in the future? You see, in ten or eight years, you will find that the current house price is only a fraction."

"Mr. Jiang, it's not that exaggerated, right? Then who else can afford a house?" Tang Minghua said with a smile, apparently not believing what Jiang Hui said.

It is estimated that no one in the world would believe that the house price in the imperial capital will be more than ten times that of the current one, including Jiang Hui in his previous life.

However, the fact is that under the wave after wave of bad news, the housing prices in the imperial capital have been steadily rising step by step.

It’s like the economy of the Celestial Dynasty. Countless experts from all over the world are clamoring for the theory of the collapse of the Celestial Empire. However, the Chinese economy has risen all the way to the second place in the world. When the growth of the whole world is weak, there is still no sign of the collapse of the Celestial Empire’s economy. .

Facts tell us that we must listen to the words of Zhuanjia called a beast in reverse, so as to be close to the facts!

"Boss, let me ask you, could you have imagined that we could have what we are today three years ago? Can't you think of it? Many things would not happen if everyone thought it was impossible. Take the house as an example, how many people want to stay in the house? Big cities like the imperial capital? How many people want to move from fourth- and fifth-tier cities to provincial capitals? How many people want to relocate from rural areas to county towns? China is still undergoing major social changes, and the urbanization process has just entered the fast track stage. House , is no longer a problem that can be explained simply by using Western empirical formulas.”

"I'm mainly worried that we encourage employees to buy houses, and if the house price falls, it will bring unnecessary impact to our company's operations."

"You tell everyone that if anyone buys a house through the company's interest-free loan within ten years, if the house price drops, they can sell the house to me. This point can be written into the loan agreement," Jiang Hui said.

Jiang Hui couldn't understand what the house price would be like in ten years' time compared to what it is now.This seemingly risky promise has no risk at all.Even under the subprime mortgage crisis in 2008, housing prices only slightly corrected, offsetting the increase in 2007, and then continued to rush towards one peak after another.

Only higher, not the highest!
(End of this chapter)