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Third homes and Chinese divorces

The government has capped the maximum number of homes per family to target speculators. But every law has a loophole to get around it

Third homes and Chinese divorces

Made the law found the deception: this maxim seems to have universal value and bypasses latitudes and longitudes. In China, to keep a real estate boom that had assumed the size of a bubble under control, a ban on the granting of mortgages for the purchase of a third home had been established: two are considered the maximum a family can desire, per residence main and secondary, while a third home is considered a speculative investment and as such not to be favored. The unit of reference is the family, but if a family that already has two houses splits up and the two houses are divided equally, each of the two spouses has the right to a "second" house. Here then is that the wealthy Chinese who want a third home just have to get a divorce: a market of 'false divorces' has been created in some cities, so as to allow them to have more houses in their portfolio. It is assumed that then, after having profitably resold the 'third' house, a new marriage can be celebrated…

http://www.bloomberg.com/news/2011-08-15/china-home-sales-skirt-policies-with-fake-divorces-parking-lots.html

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