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Why Are Chinese People Smarter About Mortgages than Americans?
Blunt talk about why American homeowners are often such screwups when it comes to managing their mortgage and family financials.
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Homeowners in many countries have been forced to come to grips with new finance realities that have gone from being friendly and risk-free to hostile and fraught with risk.
But some people are reacting more smartly than others.
Take the story of Dr. Aki Wang from Hangzhao.
Aki Wang made a resolution on her 35th birthday in June. She vowed to pay off her 25-year mortgage before she turns 40, which will save her close to 1 million yuan (US$140,535) in interest payments.
“I pay 5.1 per cent interest on my mortgage,” said the ear, nose and throat (ENT) specialist, who bought a two-bedroom flat in Hangzhou, the capital of southeastern Zhejiang province, with a loan of 2 million yuan in 2018. “What kind of wealth management product or stock investment gives you such returns?” she asked rhetorically, referring to the slumping equity markets that has eroded investment returns.
The medical practitioner has already repaid 700,000 yuan since 2018, including 150,000 yuan in one go in March.
(Chinese homeowners in a rush to clear mortgages early as consumers turn pessimistic over economic outlook, South China Morning Post. 10/10/2022)
