China`s Real Estate BUBBLE?

[wealthyboomer]

The hottest market in the hottest economy in the world is Chinese real estate. The big question is how vulnerable is this market to a crash.
One red flag is the vast number of vacant homes spread through China, by some estimates up to 64 million vacant homes.



Read more: http://www.financialpost.com/ghost+cities+...l#ixzz18PfWn5VL

 

[Rickson9]

Although it is foreign and surprising to us (it was surprising to me anyway), where the middle class in North America generally carries a mortgage on real estate, the middle class in China do not. You read that correctly, middle class Chinese hold approximately $15 trillion in real estate in China and don`t have mortgages on them.

So what happens to a real estate owner who has no debt when the market crashes? They get a little sad.

http://www.businessinsider.com/chinese-mortgage-debt-2010-12

Best regards.