Source: CCTV.com
10-23-2008 08:37
Special Report: House Market under New PolicySpecial Report: Global Financial Crisis
The Ministry of Finance has introduced new policies it hopes will get people buying property again. The latest measures include cutting or even temporarily stopping tax rates on properties. The required down payment is also going to be reduced.
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| The Ministry of Finance has introduced new policies it hopes will get people buying property again. |
According to the Website of the Ministry of Finance, the deed tax rate is going to be reduced to 1 percent from 3-5 percent for the first purchase of a property under under 90 square meters starting November 1st. And the stamp duty and the land value-added tax for properties will be temporarily suspended. Take Beijing as an example, the rate for the stamp duty now is 0.05 percent and the rate for the land incremental tax is 1 percent.
Meanwhile, the Ministry of Finance says the mortgage loan rate will be lowered to 70 percent of the loan benchmark interest rate which is 6.93 percent, while the minimum down payment will be cut to 20 percent. Previously the rate was at least 40 percent if the home buyers purchased their second houses by borrowing money from banks. In the meantime, loan rates for public housing fund will be reduced from 4.32 percent to 4.05 percent for 5-year loans.
Editor:Xiong
