70 years house ownership recently expires for some old houses in Shanghai, houses will be demolished

[indushek]

In China, old houses are likely to have very high prices because of their location. It may not be fair to replace a house with a house of the same size.

The house below is probably the most dilapidated house in Beijing, but it is also the most expensive house in Beijing. These houses usually cost more than 20 million dollars per unit.

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Siheyuan - Wikipedia

en.m.wikipedia.org

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But how does the City or town, not levy a yearly property tax? Doesn't that mean, they are losing possible revenue?

From what am checking on google, you guys have only taxes when a property is sold or brought. Why are the authorities losing so much income?

 

[MH.Yang]

But how does the City or town, not levy a yearly property tax? Doesn't that mean, they are losing possible revenue?

From what am checking on google, you guys have only taxes when a property is sold or brought. Why are the authorities losing so much income?

There is no property tax in China.

 

[indushek]

There is no property tax in China.

Seems to be a loss of income somehow, wonder how they are compensating for this.

 

[beijingwalker]

last year, Some American moron here tried to tell me that we Chinese house owners will be kicked out of houses after the 70 years ownership time is up , and CCP will seize our houses and we will become homeless sleeping on the streets

 

[MH.Yang]

Seems to be a loss of income somehow, wonder how they are compensating for this.

The Chinese govt's revenue comes mainly from the profits of state-owned enterprises. It does not rely much on taxes.

Moreover, the Chinese govt favors taxing large corporations and rarely taxes individuals and small companies.

 

[indushek]

The Chinese govt's revenue comes mainly from the profits of state-owned enterprises. It does not rely much on taxes.

Moreover, the Chinese govt favors taxing large corporations and rarely taxes individuals and small companies.

That is a thoughtful idea then, lets the individuals free of tax burden. Nice

 

[Mista]

Without property taxes, how to the local governments (city municipality and district administration) get money for services like road repair, schools, street lighting, public hospitals, public transport etc.?

China's local governments must prevent, defuse debt risks, Economic Daily says

China's local governments must pay attention to high levels of debt to prevent and defuse the risk of default and contagion, state media Economic Daily said in a commentary on Thursday, as concerns over local debts mount.

www.reuters.com

 

[Communism]

Seems to be a loss of income somehow, wonder how they are compensating for this.

The population has enormous savings, so the Government can simply leverage those savings for investment.


China has multiple times more savings than total debt.


The "debt crisis" is hilariously wrong.


China does not have a debt crisis, it has a problem with diminishing avenues to productively invest.


This is why there is such a flood of capital out of the country, to search for productive investments internationally.

 

[Han Patriot]

Also, the Chinese hold more flats and/or houses than they need. The real estate ownership, which your government is actively trying to limit so that the real estate bubble deflates. Ain't that funny.

Well if you can ensure you have a proper income tax system and profits from the most profitable companies go to the government, then you have a working system. But i have to agree, China will impose property tax sooner or later for people owning more than 2 properties.

Check the Chinese tax income vs Indian tax income past year then you will understand the difference. We managed to collect more taxes and you know what, we don't even have land taxes. Imagine what will happen when we start collecting property and land taxes. Our budget will be larger than Uncle Sam.

 

[epebble]

These houses usually cost more than 20 million dollars per unit.

View attachment 938889

View attachment 938890

Siheyuan - Wikipedia

en.m.wikipedia.org

View attachment 938891

For $20 million, the owner can buy a lovely lakefront Villa in Switzerland and retire happily instead of living in that shack.

https://www.luxuryestate.com/p129003970-villa-for-sale-breganzona

 

[MH.Yang]

For $20 million, the owner can buy a lovely lakefront Villa in Switzerland and retire happily instead of living in that shack.

https://www.luxuryestate.com/p129003970-villa-for-sale-breganzona

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People who can buy that kind of house, they must have enough money to buy a few more Swiss villas.



The sole heir to Hong Kong's richest man, Fok Kai Kong, marries world champion Kwok Jing Jing. His wedding gift to Guo Jingjing was this shabby house, worth 1 billion CNY ($140 million).

https://inf.news/en/entertainment/834646918e5630fc7978c8039480e6c1.html

Do you understand now? This shitty house is the most expensive luxury of all. And it's not always possible to buy them if you have money, because their owners don't lack money either.

 

[Vikramaditya-I]

Well if you can ensure you have a proper income tax system and profits from the most profitable companies go to the government, then you have a working system. But i have to agree, China will impose property tax sooner or later for people owning more than 2 properties.

Check the Chinese tax income vs Indian tax income past year then you will understand the difference. We managed to collect more taxes and you know what, we don't even have land taxes. Imagine what will happen when we start collecting property and land taxes. Our budget will be larger than Uncle Sam.

Tax collection has to do with the number of industries and income, China obviously an upper middle-income country, will have more tax collected than India. Basically, you answered nothing but haggled about something that's irrelevant to the topic or the quote I made.

 

[Han Patriot]

Tax collection has to do with the number of industries and income, China obviously an upper middle-income country, will have more tax collected than India. Basically, you answered nothing but haggled about something that's irrelevant to the topic or the quote I made.

It is relevant, i am trying to explain why we don't have land taxes mate. We used to have farm tax, meaning all farmers had to pay taxes with the produce of their land, it was scrapped off 10 years ago. Now farmers staying in villages virtually pay nothing except electric and water bill. However, i am a proponent of such tax in urban areas, at least for people owning more than 2 properties.

 

[Hamartia Antidote]

The best thing is you don't have to pay property tax on your houses cause you don't officially permanently "own" them,

yes, so think about it. Your property wealth is not fully in your control.

so in a sense, Chinese own their houses more than Americans.

What the hell are you talking about? Not only do people in the US own the house...they own the land..forever.

Your logic is really really really backwards..

So If I have a nice waterfront home nobody is going to kick me out after 70 years and send me to some new development in the middle of nowhere in exchange for my primo spot.

If anything the Chinese are at the mercy of the whims of their local government.

The problem is you have zero concept of having a home built/customized to your personal specifications and tastes. You are basically stuck in some cookie cutter unit in some big apartment building.

ownership in China is more like true ownership, you don't pay taxes for something you truly own.

You aren't completely out of paying. Most have to pay property management fees. And just like town property taxes your building can be cheapskates and ask for the absolute minimum for maintenance or be a like a better town and charge higher fees,

 

[Stranagor]

Americans have low house ownership rate and struggle to make ends meet for a reason.

House owership rate

China

89.68

2018[8]

United States

65.9

2022[27]

Just because the party says it doesn't exist doesn't mean it doesn't.