06 September 2010

How can a pensioner save on rent?

Chinese pensioner decided to dig underground apartments under his houseNEWSru.com
A former Chinese miner, 64-year-old Chen Xinyan has spent the last four years digging an underground cave under his home in Zhengzhou.

The pensioner plans to build himself a residence with three bedrooms and a living room. To date, the area of the room, which goes underground for six meters, is 50 sq. m, reports Prian.ru with reference to ABC News.

According to Chen, his underground house is able to withstand an earthquake of eight points. In addition, it is warm in winter and cool in summer.

(Judging by the picture from the article in China Daily
you can even dance here, if you are careful – VM :)

A pensioner and would be glad to change his former home to a bigger house, but the prices do not allow. In July, the average cost of residential real estate in China rose by 10.3% compared to the same period in 2009. This indicator has been increasing for more than a year, and despite a slight slowdown in its growth rate, which became possible thanks to the intervention of the state, housing continues to remain inaccessible to ordinary citizens.

At the end of last year, specialists of the Chinese Academy of Social Sciences conducted a study, which found that the prices of residential real estate in the country are many times higher than the income level of the population. According to experts, if the cost of a residential property is 3-6 times higher than the annual income of a citizen, its purchase is difficult. Meanwhile, by the end of last year, housing prices were on average 8.3 times higher than the incomes of the Chinese, and 85% of families could not afford the purchase of square meters.

As for the government's measures to curb the growth of housing prices, the following stand out among them: in 2012, a real estate tax should be introduced in the country, which is expected to amount to 0.8% of the value of the object, credit requirements for developers and home buyers have been tightened.

However, apart from a slight slowdown in the growth rate of housing prices on an annualized basis, so far these measures do not seem to have had much effect. According to the Shanghai Daily, in August, in the largest city of the country, Shanghai, the volume of sales of new housing and prices for it went up again. As Liu Qilin, an analyst at Shanghai Uwin Real Estate Information Services Co, explains, "some buyers who expected prices to fall eventually decided to buy, since the measures taken by the authorities have not yet had a tangible effect."

Portal "Eternal youth" http://vechnayamolodost.ru06.09.2010

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