The Chinese are getting fake divorces according to China Daily and CNN
We ran a story about this a few months ago but I just read this in CNN this morning as I was in the middle of my morning espresso (which I imbibed with two stolen Tootsie Rolls (kleptoed from a huge bag of candy that my housemates bought [and hid from me!!!] for the kids for Halloween hahahahahaha :)). Why do they do things like that? Don’t they know who I am? Don’t they know I will find my sugar even if I have to turn this entire house upside down??? Ah, man. Hope they’ll be candy left when the kids come trick or treating….
Well, so, the story is, that the Chinese have made obtaining favorable mortgage rates very difficult for families who want to purchase more than one additional home. So this has forced affluent Chinese who want to purchase more real estate to actually fake their divorces so that they will qualify for more homes. Says China Daily:
The latest government regulation limiting families to the purchase of only one new apartment has led many couples in the city to fake a divorce to dodge the rule.
Shanghai unveils more lending limits to cool market
Property prices set to decline, S&P says
Getting a grip on property ladder
Falling prices need soft landing
According to a regulation issued by the Shanghai government on Oct 7, every household in Shanghai is allowed to purchase only one more commercial residential property starting Oct 7. Anyone in violation will not be able to register his or her ownership of the property. But some couples are reportedly turning to fake-certificate companies for phony divorce certificates in order to buy more new apartments.
Interesting, no? Not just in terms of the fact that people feel they need to get a fake divorce in order to buy more property, but that so many Chinese are even in a position to buy more property when the global economy is tanking the way it is. That is very interesting from an economic perspective. The other thing that is interesting, and what I don’t understand (since I”m not an economist) is why is it a bad thing that the Chinese can buy more than two homes? Why would the government want to curb that? Isn’t it good for the economy and the GDP and all that? We are trying to get more people in America to buy more homes to stimulate our economy and China is doing its damnedest, including forcing people to get fake divorces, to stop people from buying new homes. What gives?