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They take pawning to a new level in China

March 18, 2010

They take pawning to a new level in China:

Property owners in Beijing are pawning their apartments as they attempt to secure quick cash to buy new properties to take advantage of a tax exemption policy due to end on December 31st…

Pawnbrokers are reporting a huge increase in the number of property hunters offering apartments as collateral on short term loans at pawnshops because they can get their money faster than through the banks even though interest rates are much higher interest at between 3 to 3.2%.

One Peng Tao, property manager of Huaxia Pawnshop, said business had increased 50 % since the first of November compared to the same period last year. Peng said many buyers were using this money to buy new properties…[Full Article Here]

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