Post-Peak? Scare Article Discusses Banks Taking Homes

This article from 365地产家居网 was at the top of iFeng's real estate section today. It discusses how prices declines will damage the economy, and how homes may be more difficult to buy due to lower incomes and tighter credit. It also says the home speculators will do fine because they'll snatch up homes as soon as demand starts kicking in. Then the government will bail everyone out, and the speculators will make money, but average people won't be able to take advantage of the drop.

For these innocent children's paper, Xiao Bian really do not have the heart to tell you: Once prices fall, whether you can repay on time, the banks have the right to take away your house! Theory is not clear, we come to make a good analogy: A 2016 to spend 1 million to buy a house, down payment of 300,000, 700,000 loans, repay 10,000 a year later, leaving 690,000, and then prices rapidly decline, so that your house's prices shrunk by half, the market price of only 500,000. At this time the bank will come to you: when your house mortgage loan is 700,000, but now only worth 500,000, according to the bank's lending rules, you need to fill the balance of insufficient mortgage 190,000 (690,000-500,000). At this time unless you deposit 190,000, to do early repayment, or other value of not less than 190,000 of collateral pledged. Otherwise, the bank will "pop" a hammer and put your house to auction.
The article goes on:
1 Once house prices plummet, your income will be greatly reduced. Real estate as a pillar industry in China, if there are problems, all sectors of the economy will be affected. Corporate profits, layoffs, pay cuts will be commonplace. Income less, buy a house even more difficult.

2 Once the housing prices plummet, the economy will decline sharply, banks will be the biggest victims.

Data show that house prices fell 30%, the bank will increase at least one trillion more than bad debts, not only will bring huge banks, the national financial crisis will face collapse.

Therefore, once prices fall, banks will be more stringent loan approval, raise the proportion of the first payment, reduce interest rates.

3 once house prices plummeted, the market will be a sharp decline in new homes, second - hand housing activity will decline. Depression of the property market, not only no extra house for you to choose, housing quality and design are not so high standards, a lot of the house after you buy will let you down.

4 once the house prices plummeted, land prices will inevitably fall, the government's income will be reduced, a direct result of the Government's fiscal expenditure reduction, those for the construction of low-income housing security room, limit room will enter an impasse, difficult In addition, housing prices plummeted, the economy slumped, unemployment increased, buy a house or unattainable. Once the price plummeted, people who have multiple suites will be profitable up to the surface, with many sets of real estate people will lose the most, but the fact is the opposite, this group is the most profitable. why?
iFeng: 房价一旦下跌 没房或仅一套房的人将会哭死!

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