00:00 In an era of high inflation and a growing income gap,
00:05 it is even harder for many young workers to buy a house.
00:10 For this, the Minister of Local Government and Development, Nick Min,
00:14 was invited to attend RTM's morning live broadcast,
00:17 and he said,
00:18 "In line with the "Bright Economy" policy announced by Prime Minister An Hua last week,
00:22 the Ministry of Land, Infrastructure and Transport will introduce five innovative measures,
00:25 including the establishment of a national housing fund to pay the first payment of the house
00:30 for the B40 and M20 families who are buying a house."
00:33 Nick Min said,
00:34 "The Ministry of Land, Infrastructure and Transport will recommend to the Ministry of Finance
00:38 to pay the first payment of the house to the B40 and M20 families who are buying the first house,
00:42 with a maximum of RMB30,000."
00:46 I believe that everyone is familiar with the B40 low-income group,
00:49 and M20 may be less heard of.
00:52 In fact, the M20 is the middle-income family
00:56 with monthly income between RMB5,880 and RMB7,099.
01:00 Nick Min believes that once this plan is successfully implemented,
01:03 it will certainly make the first family to buy a house,
01:06 especially the majority of young people.
01:09 As for how this measure will be implemented in the establishment,
01:13 Nick Min said during an interview with the New York Times,
01:16 "If people who are eligible to buy a house worth RMB300,000
01:20 will pay 10% of the first payment of the house to the state housing fund,
01:24 and the people will not have to pay the first payment of the house afterwards.
01:28 However, at this stage, this suggestion is limited to the house that can be paid.
01:32 Perhaps in the future,
01:34 the house that can be bought for less than RMB500,000
01:37 will also be able to enjoy 10% of the first payment of the house provided by the government,
01:40 without having to pay."
01:42 Nick Min said,
01:43 "The government not only wants to help the people pay the first payment of the house,
01:46 but also wants to solve the problem of people not being able to borrow from banks."
01:50 He said,
01:50 "The government will launch a guarantee of up to RMB50,000 through the housing credit guarantee plan,
01:56 which will provide up to 120% of the financing guarantee for houses under RMB300,000.
02:01 In this way, the people will not have to worry about not being able to borrow money from banks."
02:06 Nick Min also said,
02:07 "The initial concept of establishing a state housing fund is financed by the Ministry of Finance,
02:12 and once approved,
02:13 the fund is not limited to receiving funds from the government,
02:17 but can also receive funds from the development.
02:19 For example, the current housing policy is that
02:22 if a developer wants to build a house,
02:24 30% of it must be built with affordable housing.
02:27 But many developers think that building affordable housing is a loss of business.
02:31 They usually apply for a loan to not build a new house."
02:35 Developers can apply for a loan,
02:38 but Nick Min said,
02:39 they have to donate 30% of the money to the state housing fund.
02:45 After the developer has donated the money to the fund,
02:48 they can build more houses on the land at the market price
02:52 and get more profits.
02:54 Nick Min said,
02:55 "From a long-term perspective,
02:56 this plan can not only allow the people to own houses,
02:59 but also make the real estate market booming.
03:02 The government can also get more taxes from housing transactions and hard tax.
03:06 It is a win-win situation."
03:08 [MUSIC]
