Zhang Ping (www.sohu.com):
Actually, many people are reacting to the idea of the “six wallets” raised by Fan by taking action. In lowertier cities where house prices are lower, one may not need all of the “six wallets” to pay for the down payment. However, in big cities, in most cases, even “six wallets” bundled together are not enough to cover the down payment. The heated debate on the “six wallets” argument really reflects the whole society’s concern over soaring house prices.
Even if young people can manage to afford the down payment by using money from the “six wallets,” the monthly mortgage payment will still be their responsibility , since parents and grandparents have no more to contribute. A rising mortgage rate and the burden of a house will only keep mounting on young people’s shoulders. Thus, what they need to do is to increase their own incomes, or they’ll find themselves in a dire situation for the rest of their lives as slaves to their houses.
The parents’ money and pension are set aside for future medical treatment, not for their children’s house purchase. If this part of family wealth is used to buy a house, what will the elderly do in case of serious illness?
If young people do have “six wallets” to support them, then their parents and grandparents must have their own property. Thus, when their parents pass away, young people will be left with several houses. As a result of the one-child policy, the generation born in the 1990s is very small, so in the future, the supply of houses will exceed demand.
Besides, young people don’t need to buy houses, as they can live in rented houses. Young couples are eager to buy houses because they fear they may never be able to afford a house in the future due to soaring prices. China’s real estate sector is expanding frantically at the present moment. But if house prices drop sharply in the future, it will not be necessary for the young to use up the “six wallets” of savings for the down payment of a flat.
With declining birth rates, young families in big cities will have several flats in the future. It is better to live in a rented house and focus on success in one’s career, waiting for house prices to drop to a normal level. The “six wallets” argument is nudging the young to sacrifice several generations’ wealth to shore up the real estate boom.