Notice of Hengyang Municipal People`s Government on further promotion of real estate consumption
(Promulgated by Decree No. 14 of Hengyang Municipal People`s Government on June 19, 2009)

To people`s governments of county, city or district level, departments under the city`s direct leadship:

According to spirit of the document "Opinions on promoting stable and healthy development of real estate market from office of Hunan provincial CPC committee and office of Hunan Provincial Government" (Hunan politics to issue NO. 18 of 2008), in order to further boost the city`s real estate consumption, promote the development of related industries, and realize the targets of domestic demand expansion and growth ensurement, based on research, the Municipal Government now made the following notice:

    1. Adjust the Deed Tax Policy
1) For purchased houses of more than 144 square meters (including second-hand housing, regardless of first purchase or not), as long as the property certificate is handled before December 31, 2010, the deed tax shall be levied at 2%.
2) For purchased houses of less than 144 square meters (including second-hand housing, regardless of first purchase or not), as long as the property certificate is handled before December 31, 2010, the deed tax shall be levied at 1%.
3) For purchased non-residential houses (including second-hand housing), as long as the property certificate is handled before December 31, 2010, the deed tax shall be levied at 3%.
4) For those re-settlors` purchase of houses, the portion of the purchase price which is equivalent to the relocation compensation shall be exempted from the deed tax of transaction.
5) For those purchasers who want to improve living conditions by "exchanging old houses for new ones, and small ones for big ones", when handling new property certificates, they are allowed to offset the payable deed tax by the amount of the purchase deed tax in the original invoice.

    2. Adjust the Business Tax Policy
Individuals who sell out the purchased residential houses can be exempted from the business tax. For those who sell out the purchased nonresidential, houses, the business tax will be levied at the balance between the sales income and the original purchase price of the house.

    3. Adjust the housing rental tax
Owners are encouraged to lease houses and revitalize stock assets. The housing rental tax shall be simply levied by the composite tax rate. For private rental housing, the tax shall be levied by a composite tax of 6.6725% regardless of its usage.

    4. Carry out house-purchasing subsidies for low-income families
According to the housing subsidy policy specified in The document of "Notice of printing and distributing <Opinions on Promoting Healthy Development of the City`s Real Estate> of Hengyang People`s Government", 1,200 subjects with affordable housing will be provided with housing subsidy within three years ,the quotas which were previously assumed to be distributed annually shall be distributed in accordance with new regulations-as long as the buyer purchase the house and handle the property certificate before December 31, 2010, the buyer can enjoy 30,000  yuan`s housing subsidy when handling the property certificate.
   
5. Give full play to housing accumulation fund loans. Vigorously develop personal housing accumulation fund loans, and relax restrictions for loan of housing accumulation fund.  
1) For the new employees who`d like to loan the accumulation fund to buy houses, as long as their units has paid the housing accumulation fund as required, they will not be constrained by their depositing years.
2) Actively promote housing fund mortgage loans. For all development projects, various existing houses, and second-hand houses which meet the pre-sale conditions, housing fund mortgage loans can be granted.
3) Actively carry out the transfer of commercial loans to housing accumulation fund
4) Allow loans after pre-occupation and carry out hedging repayment services. Purchasers who have already had loans will be allowed to offset the loan principal with the housing accumulation fund of himself or herself, his or her spouse or his or her direct relatives, and conduct monthly hedging repayment. For new creditors of housing accumulation fund, they are allowed to withdraw in advance the deposit balance of his or her, his or her spouse`s or his or her direct relatives` housing accumulation fund; and monthly hedging repayment is feasible.
5) For those who use housing fund loans to purchase houses (including second-hand houses), their first payment ratio can be reduced to a minimum of 20%; a maximum loan amount up to 40 million can be debited, and the loan duration can be extended to as long as 30 years (the term of repayment is within the legal retirement age stipulated by the state.)
6) Strictly implement the loan rate principle of People`s Bank of China, and decrease the loan rate of individual housing accumulation fund on time.
 
6. Personal housing consumption loans shall be developed positively.
Financial institutions should vigorously support residents in their purchase of houses on loan; the lower limit of the interest rate can be increased to 0.7 times of the basic interest rate, and the minimum first payment ratio is reduced to 20%. Support shall also be provided for migrant workers who have long-term stable employment in the city and is economically capable for purchase of houses on loans.

    7. Carry out policies about purchasing houses and settling
For people who have purchased dwelling houses larger than 65 square meters or shops with the cost more than 300,000 yuan in urban areas, after their application with the deed tax invoices and property ownership certificate, household registrations of the house owner and his immediate family members can be settled in Hengyang city. In the transferring procedures of the household registration, only card issuing fees will be charged. Their children can enjoy the equal townsfolk treatment with respect to school, employment, and social security etc.

    8. Postpone the charge of fees
The payment of the buyer`s housing maintenance fund can be deferred to the time of handling property ownership certificate. For those which have already got the pre-selling license before the issue of this document, the account opening fees of water, electricity, gas, cable television, and telecommunications etc shall be charged in accordance with previous provisions. The charge standard must be publicly notified by relative departments on television, newspapers, or advance sale sites of residential houses; random charge of real estate developers or related departments will be investigated and strictly punished. For those projects which handle the pre-selling licenses after the issue of this document, their fees must be incorporated into the development cost, and any additional charge is prohibited.
 
9. Strengthen the market`s monitoring, control, supervision and guidance
Regular real estate joint meetings shall be held, the government`s macro-control on the real estate market shall be strengthened, and the supply scale of the land market shall be properly determined. Strengthen the monitoring and analysis of the market, release the market information accurately and timely, reinforce positive propaganda and boost confidence for the market and promote healthy and stable development for the housing market.

    10. Rectify the market order completely.
Strictly crack down irregularity actions such as understatement in house construction, irregular lease and house selling, false advertisement etc, and focus shall be placed on reorganization of distorted cooperation housing and "small property right houses" (houses on the collective-owned lands which villagers themselves do not live in). Those who conducted distorted cooperation housing are required to make up the difference of value on the incomes from its’ granting of land rights and related regular fees which are not market-based. Small property rights houses are prohibited and serious investigation shall be conducted to ensure the healthy and orderly development of the city`s real estate market.