Wednesday, February 27, 2008

Chinese need mortgages too

Ethnic Chinese have often been compared to the Jews. Just as the Jews have the Jew Diaspora, Chinese too have their Chinese Diaspora. In can find Chinese in almost every corner of the world including Asian countries where they are often regarded as rich towkays (business boss) associated with wealth. It is not surprising for Chinese ancestors have gone through very hard times and have honed their survival skills to a fine degree. Many have prospered because of hard work and emphasis on education. However, one cannot say all are rich. Many will need mortgages either to buy houses, to finance their business ventures, to finance their children's education. I know. I was one of them who had to get into debt to finance my children's education in foreign countries because it is almost impossible for them to get into subsidized public universities in my country. Even if they can get admitted, they will not likely to get their choice field of study. Further, because of flawed policies, none of my country public university made it into the top 200 universities of the world.

Chinese in United Kingdom

Wikipedia reported that the Chinese are the fastest growing non-European ethnic group in the United Kingdom, growing at 11% per annum between 2001-2003 with growth coming almost exclusively from immigration. Immigrants are not likely to be rich and obviously will need a roof over their head. So they will likely need to purchase residential properties. I doubt any significant ethnic Chinese in United Kingdom can afford to purchase residential properties with 100% cash. That can only mean one thing - mortgage. What exactly are mortgages? According to Wikipedia, a mortgage is a method of using property (real or personal) as security for the performance of an obligation, usually the payment of a debt. In most cases, the debt will be in form of a loan as part payment for a real estate property or to secure working capital for a business.

For ethnic Chinese living in the United Kingdom, it is obvious that if they ever need a mortgage, they will end up with a UK mortgage. It is most natural and most convenient.


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