Policy changes force rethink

Miao Wenjun, a 32-year-old IT system equipment distribution manager, is thinking of abandoning her plan to buy an apartment in central Shanghai after a year of hunting for the ideal residence.

In late 2016, Miao, a native of Hefei, Anhui province, got her household registration, known as hukou, in Shanghai after working for 10 years in the city, which meant she was qualified to buy a home in the city under Shanghai’s housing policies.

The first thing she did was selling her apartment in her hometown to raise 1.2 million yuan ($174,100) for the down payment for a property she would like to buy in Shanghai.

She applied for a loan of 2.2 million yuan, with monthly installments of 11,782 yuan, but she was rejected in late January, and told that her monthly income of some 20,000 yuan was not enough a proof of her ability to pay the debt.

She found that she was not alone among the many rejected homebuyers, as at least four of her friends had been rejected for the same reason.

“People say that I was unlucky because I applied too late, and the lending policies were already tightened. I can’t blame anyone. I can just blame my income for being too low. I am thinking of changing my job to get a higher salary, and try applying again,” said Miao.

Or, she can reduce her budget for homebuying, and borrow a smaller amount, said Miao.

“Buying a home is a dream, but it is not the only option. In 2017 I will look at smaller apartments in suburban Shanghai. And if I can successfully buy a property in Shanghai, I will feel quite lucky,” she said.

The only thing she hopes, said Miao, is that home prices do not rise to a level beyond what she can afford by the time she gets her finances ready.