Thursday, October 6, 2011
From International Business Times:
As America tries to recover from its housing bubble burst, China's housing bubble is blowing up. The latest: Chinese couples are faking divorce so they can borrow more money to buy more second and third homes, trying to seize upon rising prices.
In the effort to curb the growing housing bubble, the Chinese government has tried to initiate actions to make getting second mortgages harder. The government raised the down payment for second mortgages to make them harder to obtain, and about 40 Chinese cities have begun to limit apartment purchases to two per family, according to a story from Bloomberg.
The government, the story says, has also asked commercial banks to quit giving loans to third-time home buyers.
Read more here.