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Want A Second House? Get Divorced
Yes, you read it right! The Chinese government had imposed restrictions on couples to buy a second real estate property, if they already own one. To curb property speculations, the government has banned the purchase of a second homes.
"Divorce can reduce a couple's down payment by 140,000 yuan (20,505 US dollars) and mortgage payments by 100,000 yuan," said Li, who wants to buy a second home worth 720,000 yuan, for investment in Changsha, the capital of central Hunan Province.
In mid-April, the State Council, or the Cabinet, ordered banks nationwide to raise the down payment for a family to buy a second home to a minimum 50 per cent of the value from 40 per cent, with a mortgage rate no less than 1.1 times the benchmark interest rate.
"After we get divorced, my wife will claim our house, so that I can apply for a mortgage as a first-home buyer since I don't have a house under my name. And we will remarry after that," said Li.
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