Housing Finance For Mid-Lower Income Family In Germany And Implication Of China

Housing is the necessity for survival, and also the family’s biggest asset. For most developed countries in the world, the housing plays an important role, typically accounting for 10 to 20 per cent of total economic activity. To establish an effective supporting housing finance systerm for the middle and low-income families is quite important for the whole economy’s stable and social justices. To solve this problem, there are many good examples in the world. However, housing finance reflects the historical, social and economic particularities of a given country, there is no particular "best" systerm for all the countries. This article is based on the German model in the middle and low-income families’s housing finance research to explore the solution for the same problem in China."Tilted to the middle and low income families" is the basic housing policy in Germany’s social market economic system. Part 1 of this thesis has made the research of the whole German housing finance systerm. After this part, you will find how diversified the German housing finance systerm is, and how the German government has been indirectly involved in the housing finance market, the governement guided the various forms if social resources for the middle and low-income families’s housing finance.After the World War II, German has established a particular housing finance system called Bausparkasse, which means the Contract Saving Systerm, and serves particularly for the middle and low-income families’s housing finance. In Part 2, we will make a deep research of this professional housing finance model. The Bausparkasse is designed to offer a dedicated loan-linked form of saving, customers of Bausparkasse are entitled to State support in the form of a bonus on his savings. Because of some features the Bausparkasse has had, the German housing finance systerm is proved to have provided an affordable housing and a financial stabile macroeconomic condition. From 1980s, China gradually began to implement the market-oriented housing finance reformation. Part 3 has summarized the housing finance systerm now China has had, and made a deep research to analysis whether this systerm is available and effective for the middle and low-income families’s housing finance.In Feberary 2004, the first Bausparkasse Bank called Sino-German Bausparkasse has been established in Tianjin, China. However, because of the different market conditions between this two countries, the new Bausparkasse born in China has met special problems. Part 4 is about the different points that both market has had, and there will be a comparative research between Bauspakasse and the Chinese Housing Accumulation Fund. In the end, we will see the implication for the role that government could play with solving the problem of middle and low-icome families housing finance in the market-oriented economy.