In Zhengzhou, an increasing number of kids have become
authorized owners of their family assets. A seven-year-old pupil is
said to own three houses that are worth one million yuan under his
name. A five-year-old kid has a villa valued at nearly two million
yuan.
In recent years, more and more young millionaires have emerged
in Zhengzhou and according to a staff member working at Zhengzhou
House Management Bureau, the number is still increasing by 3,000
every year, the Henan-based Dong Fang Jing Bao reported.
An official at Zhengzhou House Management Bureau said the
phenomenon arose because of several reasons.
The first reason is that some parents buy houses for their
children in order to avoid inheritance tax. In recent years, China
has constantly lifted the tax rate for house ownership transfer.
Although China does not implement the inheritance tax at present,
people fear that such tax might be levied at any time in future. So
they take action now to avoid the possible rising transfer fees and
the inheritance tax.
Second, some parents buy houses for their children in the hope
that their children can live a comfortable life in future.
Nowadays, as most parents have only one child in the family, they
tend to idolize the child. When they have the money, some parents
might consider buying a house for their children as a birthday
gift.
Third, some parents put their housing assets under their child's
name, thinking that in case the parents get divorced, there won't
be any financial disputes between the couple.
Fourth, some people, after getting remarried, want to give their
house to the child they have with their new husband or wife, so
that the stepchild won't argue for the house in future.
Finally, some businesspeople put the houses under their child's
name so that once they are in debt, they won't have to dispense
with all their money to pay off the debt. Their child, in this
case, will not need to endure any hardships despite their parents'
difficulties.
(Chinanews, December 7, 2007)