Mortgage Payment as a Portion of Income: A Better Solution

Authors: Anthony Yanxiang Gu, Joseph W. Trefzger

Start Page:121
End Page: 135
Volume: 6
Issue Number: 1
Year: 2003
Publication: International Real Estate Review

Abstract: We propose a program that would further promote housing privatization in China. In addition to operating its current Housing Savings Fund program, the government could guarantee loans, with payments capped at affordable levels or spread out over workable payment periods. Such a program would balance efficiency with fairness by encouraging market forces, while addressing practical necessities (lenders? rights, corruption, labor mobility) so that privatization could relieve the burden on government and taxpayers. Net benefits would arise through the private market?s greater efficiency in managing housing resources.

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