Chinese couples divorce to buy property
In China some couples have to fake their own divorces so they can get third mortgages and bank loans to buy properties.Others are actually getting real divorces worried that a fraudulent divorce might come back to haunt them.
In other cases, real estate agents are helping couples with forged marriage licenses and documents to prove local residency and allow buyers to purchase more properties.
The strategies are all designed to thwart the Chinese government’s efforts to prevent a price bubble in the housing market. In recent months the government has taken dramatic steps to curb an ever escalating housing market, including limiting the number of properties a family can own.
Owning residential property is a relatively new phenomenon in China with the acquisition of residential property beginning only 13 years ago.
Since then house fever has gripped the nation, coinciding with surging incomes. And it’s not likely to stop since China’s five-year plan allows for an increase in incomes by an annual average of more than seven per cent.
With more money in their pockets everyone wants to invest in property. Housing sales have surged 25 per cent in the first seven months from a year earlier and prices have climbed in 67 out of 70 cities monitored by the Chinese government.