Unit Three Property Boom,1. Lead-in 2. Text A: Between a Rock and a Living Space 3. Text B: Building Excitement,Lead-in,Lead-in,These are pictures of the top six skyscrapers in the world. Can you recognize them? Match the pictures with their names.,1),2),3),5),4),6),Lead-in,4),1),2),3),6),5),房地產(chǎn)英語常用詞匯,按揭貸款mortgage loan 按揭購房to buy a house on mortgage; to mortgage a house 房屋空置率housing vacancy rate 安居工程Comfortable Housing Project 板樓，板式樓slab-type apartment building 搬遷戶a relocated unit or household,炒房者real estate speculator 房改housing system reform 房管real estate management 房產(chǎn)市場real estate market 城鎮(zhèn)住房公積金urban housing provident fund 低價(jià)住房low-cost housing 二手房second-hand house 房產(chǎn)估價(jià)師real estate assessor 房產(chǎn)證property ownership certificate,Useful Expression,A： What is the square area of your property? How many bedrooms and living rooms? 你的單位面積有多大？有多少間睡房和客廳？ B： Its gross area is approximately nine hundred square feet. Theres one living room, one dining room, one master room and two bedrooms. 建筑面積約九百平方英尺，有一個客廳、一個飯廳、一間主人套房和兩間睡房。,B： May I know the size, the layout of the house？ 可否告訴我那個單位的面積、間格怎樣的？ A： Sure. The area of this flat is around nine hundred square feet. It is designed as one living room, one dining room, one master bedroom and two bedrooms. 當(dāng)然可以。房子面積約九百平方英尺，單位設(shè)計(jì)為一個客廳、一個飯廳、一個主人套房和兩個睡房。,B： How about the price and the bank mortgage？ 售價(jià)和銀行貸款如何？ A： The average unit price is five million Hong Kong dollars. There are eight different banks that will provide a seventy percent mortgage loan. Also, the developer will offer another ten percent mortgage to purchasers. 平均售價(jià)約港幣五百萬元，。有八間銀行提供七成按揭貸款，而發(fā)展商亦可提供另外一成的按揭給認(rèn)購者。,Text A Between a Rock and a Living Space,Subprime Mortgage,A type of mortgage that is normally made out to borrowers with lower credit ratings. As a result of the borrowers lowered credit rating, a conventional mortgage is not offered because the lender views the borrower as having a larger-than-average risk of defaulting on the loan. Lending institutions often charge interest on subprime mortgages at a rate that is higher than a conventional mortgage in order to compensate themselves for carrying more risk.,The U.S. subprime mortgage crisis was a nationwide banking emergency that coincided with the U.S. recession of December 2007 June 2009. It was triggered by a large decline in home prices, leading to mortgage delinquencies(按揭拖欠） and foreclosures(止贖） and the devaluation of housing-related securities. Declines in residential investment preceded the recession and were followed by reductions in household spending and then business investment. Spending reductions were more significant in areas with a combination of high household debt and larger housing price declines.,The crisis had severe, long-lasting consequences for the U.S. and European economies. The U.S. entered a deep recession, with nearly 9 million jobs lost during 2008 and 2009, roughly 6% of the workforce. One estimate of lost output from the crisis comes to “at least 40% of 2007 gross domestic product“. U.S. housing prices fell nearly 30% on average and the U.S. stock market fell approximately 50% by early 2009. Europe also continued to struggle with its own economic crisis, with elevated unemployment and severe banking impairments estimated at 940 billion between 2008 and 2012,Between a Rock and a Living Space,between _ and _ between the devil and the deep sea between a rock and a hard place 進(jìn)退維谷,進(jìn)退兩難,Structural Analysis,unprecedented (Line. 7, Para.1) adj. never have happened before example: an unprecedented expansion in population and industry Such a move is rare, but not unprecedented.,Part I Words and Expressions,lunatic (Line 7, Para.1) adj. insane, very foolish and possibly dangerous 瘋狂的，愚蠢地 example: He pleads for sanity （明智；頭腦清楚 ） in a lunatic world. The mans lunatic behavior is a menace to society.,Part I Words and Expressions,underwriting (Line 3, Para.2) underwrite v. If an institution or company underwrites an activity, they agree to provide any money needed to cover losses 為提供經(jīng)濟(jì)擔(dān)保 example: The government will have to create a special agency to underwrite small business loans. underwriter n. 保險(xiǎn)公司，擔(dān)保人,Part I Words and Expressions,odds (Line. 9, Para.2) n. (pl.) the probability of a specified outcome 可能性，幾率 example: What are the odds of finding a parking space right outside the door? The odds are that you are going to fail.,Part I Words and Expressions,Some other phrases using “odds” against all odds sth. happens or succeeds although it seemed impossible or very unlikely 盡管困難重重 Some women do manage to achieve business success against all odds. at odds disagreeing or quarrelling with each other 不和，有矛盾 He was at odds with his Prime Minister.,Part I Words and Expressions,default (Line. 9, Para.2) n. act of failing to meet a financial obligation 違約，不履行 example: The company is in default on the loan. The corporation may be charged with default on its contract with the government.,Part I Words and Expressions,Part I Questions about Part I,Q1. What does the Robert Shillers index tell us? It is an index showing the fluctuation of real house prices in America. According to it, the house prices did not change much during the 100 years between 1890-1990, however, starting from the late 1990s, house prices nearly doubled within a decade, which was quite dramatic.,Part I Questions about Part I,Q2. What lessons can we learn from the crisis? The risk management and underwriting practices should be changed, with more emphasis on affordability, more rigorous stress-testing, and better pricing for borrowers with more equity to put in.,Part I Questions about Part I,Q3. What are the reasons for this property boom? Property market is very attractive for banks for several reasons. First, the loans to property are relatively light on capital and guaranteed by real assets; Second, the mortgages are thought to tighten a long-term relationship with customers; Third, lending on commercial property will help the sales teams of a bank to meet their target easily., he is working on ways to relate customers credit scores to the macroeconomic environment so that lenders can judge how the odds of default change when, say, unemployment goes up or down. (Line 7, Para. 2) He is analyzing the relation between customers credit scores and the macroeconomic situation. Therefore, with the information of change in unemployment rate, banks can find out the possibilities of whether a borrower would repay or default the bank loan.,Part I Sentence Interpretation,Lending on commercial property is lumpy enough for a single big deal to get sales teams to their targets. (Line 4, Para. 3) Lending on commercial property usually involves a large amount of capital, therefore a single deal is big enough for the sales teams to meet their sales targets.,Part I Sentence Interpretation,fare (Para. 4) v. proceed or get along 進(jìn)展, 經(jīng)歷 example: He fared well on his trip. It is unlikely that the real estate industry will fare any better in September.,Part II Words and Expressions,recourse (Para. 6) n. act of turning to for assistance or sth/someone turned to for assistance or security 求助，求助對象,（商業(yè)，法律） 追索權(quán) Synonym: resort example: His only recourse was the policy. The founding of the United Nations enabled its members to settle their differences without recourse to war.,Part II Words and Expressions,subdue (Para. 6) v. Put down by force or authority 制服 to feelings means to make them less strong 克制（情感），抑制 example: Senior government officials admit they have not been able to subdue the rebels. He forced himself to subdue and overcome his fears.,Part II Words and Expressions,fiscal (Para. 6) adj. involving financial matters or sth that related to government money or public money, especially taxes 會計(jì)的，財(cái)政的 example: fiscal deficit 財(cái)政赤字 fiscal policy 財(cái)政政策 fiscal revenue 財(cái)政收入 fiscal year 財(cái)政年度,Part II Words and Expressions,disentangle (Para. 7) v. Separate from things that are twisted or knotted around, or make it easier to understand or manage to understand it, by clearly recognizing each separate element 解開，擺脫或者理解（復(fù)雜的狀況） example: Shake your rope and let it disentangle gradually. Its impossible to disentangle the myth from reality.,Part II Words and Expressions,liquidity (Para. 8) n. In finance, a companys liquidity is the amount of cash or liquid assets it has easily available 流動資產(chǎn)，資產(chǎn)折現(xiàn)力，償債能力 example: market liquidity 市場流動性 excess liquidity 流動性過剩 Hong Kongs financial markets are characterized by a high degree of liquidity.,Part II Words and Expressions,legitimate (Para. 12) adj. lawful, based on known statements or in accordance with recognized or accepted standards or principles 合法的，正當(dāng)?shù)?，合理?example: Sickness is a legitimate reason for asking for leave. The New York Times has a legitimate claim to be a national newspaper.,Part II Words and Expressions,speculative (Para. 13) adj. it is used to describe activities which involve buying goods or shares, or properties, in the hope of being able to sell them again at a higher price and make a profit. 投機(jī)的 example: speculative business 投機(jī)生意 The hotel was built as a speculative venture but never completed.,Part II Words and Expressions,Q1. What are the three levers that policymakers can pull to make property safe (Para. 5-13)? The first lever is the institutional framework things like tax breaks, housing subsidies, land supply and the laws on recourse in the event of default. The second lever is the system of mortgage financing. The third lever is the idea macroprudential regulation which is already common in some parts of the world.,Part II Questions about Part II,Q2. What are the characteristics of the Danish system? (Para. 8-11) It features specialized mortgage lenders that observe strict loan-to-value limits. It also protects borrowers from interest-rate risk by offering long-term fixed-rate mortgages. It has an implicit government guarantee.,Part II Questions about Part II,Q3. What might be the consequences of imposing rigid limits on the amount people can borrow? (Para. 12) It deprives first-time buyers and the self-employed of their right to raise a bank loan. Or, it risks encouraging them to seek more expensive and unsecured method of financing. Some lenders also fret that if underwriting becomes too directive, borrowers are relieved of taking responsibility for their own actions.,Part II Questions about Part II,Q4. Why macroprudential regulation is hard to implement? (Para. 14) First it is difficult to spot the bubbles before they burst. And as soon as the property booms get going, they are hard to calm down. Also this kind of regulation might be more suitable for emerging markets than developed markets.,Part II Questions about Part II,the first is the institutional framework that is controlled by governments things like tax breaks, housing subsidies, land supply and the laws on recourse in the event of default. (Line 1, Para. 6) The first lever that policymakers can pull is by adjusting the overall system things like preferential policies on tax, housing subsidies, land supply and the laws to resort to if someone fails to fulfill his financial obligation.,Part II Sentence Interpretation,Disentangling the various causes of the property bubble is extremely difficult, but few would dispute that easy credit played a part in driving up prices and making the bust worse. (Line 1, Para. 7) It is very difficult to analyze and find out the various causes of the property bubble, but one thing is clear that easy on lending by banks played an important part in driving up housing prices and making result of the burst even worse.,Part II Sentence Interpretation,That has undoubted appeal for policymakers in countries where floating-rate mortgages expose borrowers to the risk of payment shocks as rates rise. (Line 4, Para. 9) With the floating-rate mortgages, borrowers need to pay more when interest-rate rises, which might be quick a shock for them. Therefore the Danish system of fixed-rate mortgages seems very attractive.,Part II Sentence Interpretation,These are legitimate worries, but they carry alarming echoes of arguments put forward by bankers at the height of the housing boom just gone. (Line 7, Para. 12) These are reasonable worries, but we should be alarmed that during the housing boom which had just burst, a lot of bankers also argued against rigid limits on how much people can borrow and had different opinions about them.,Part II Sentence Interpretation,leverage (Line 2, Para. 19) n. investing with borrowed money as a way to amplify potential gains (at the risk of greater losses) 杠桿效應(yīng)，舉債經(jīng)驗(yàn) example: leverage effect financial leverage One of the definition of leverage is the ability to do more with less.,Part III Words and Expressions,discretionary (Line 8, Para. 19) adj. discretionary things are not fixed by rules but are decided on by people in authority, who consider each individual case. 酌情決定的 example: The commission has discretionary power to award extra funds. Of course I have discretionary income（可隨意支配收入）.,Part III Words and Expressions,Q1. What is the current situation in America after the property crisis? (Para. 16)? The worst effects are probably over in America. The most affected banks are smaller lenders and the government is willing to provide support to residential markets. Although the dropping housing price might slow down the economic recovery.,Part III Questions about Part III,Q2. What about Europe? (Para. 17) The long-term effects might linger for years in Europe. Housing price continues to fall; certain European banks and governments ability to cope with losses are really doubtful and the risk of interest-rate rises gradually occurs.,Part III Questions about Part III,As property weighs down banks balance-sheets, first-time buyers struggle to get on the housing ladder and buildings in second-rate locations slowly decay. (Line 5, Para. 17) As property loans take up a large proportion of banks assets, on one hand first-time buyers have to struggle to pay for the loan and rising interests, on the other hand buildings in not so favorable locations will be left without buyers.,Part III Sentence Interpretation,Upping the amount of equity that banks have to hold is one way of keeping down the amount of debt that finds its way into property. (Line 2, Para. 19) Increasing the amount of net assets that banks have to hold as guarantee is one way of keeping down the amount of debt that is inevitable in property financing.,Part III Sentence Interpretation,III. Paraphrasing 1. Rewriting: Rewrite the underlined part of each sentence in your own words. 1) It is not easy to find out the reasons for the property bubble, but few would dispute that easy credit played a part in driving up prices and making the bust worse. 2) Imposing rigid limits on how much people can borrow either disenfranchises somefirst-time buyers and the self-employed tend to suffer mostor increases the risks for those resorting to a more expensive, unsecured way of financing in order to bypass the regulation. 3) Despite the evidence of Mr. Shillers chart, lots of financiers and politicians tried to convince themselves that things were not that bad this time. 4) Still, it is relatively easy to cool down the property booms in emerging markets, where there are usually more people to help into homes than there are existing homeowners. 5) Therefore financial regulators should be given clear authorized power to resist the pressures they will face when the next boom is under way.,2. Sentence Transformation: Complete the following sentences based on the structures given. 1) Only if basic guarantee standards continue to be met, can more liberal financing regimes be a good thing (ask any young Italian who wants to buy a home). 2) long-term fixed-rate mortgages are adopted by the Danish system, just like the American one, to protect borrowers from the risks of interest-rate fluctuation. 3) It is also worried by some lenders that if banks impose too strict rules to guarantee the payment of loans, the borrowers would not bear responsibility for their own actions. 4) Different from the universal excessiveness of property everywhere, the policy response to the property booms in the past decade will and should not be the same in different countries. 5) In order to lower the amount of debt which is unavoidable in property, banks have to increase the amount of equity they hold.,IV.Translation 1. Sentence Translation 1) 在銀行的零售業(yè)務(wù)中，抵押貸款被認(rèn)為是一項(xiàng)能有助于銀行與客戶建立長期 關(guān)系的業(yè)務(wù)。而商業(yè)房地產(chǎn)的貸款則由于數(shù)額巨大能夠一次性地使銷售團(tuán)隊(duì)達(dá)到 他們的目標(biāo)。 2) 第一種杠桿是由政府控制的體制框架像稅收減免、住房津貼、土地供應(yīng) 和有關(guān)違約追訴的法律等等。 3) 根據(jù)旨在削減美國的預(yù)算赤字而起草的提案，抵押貸款的利息所享受的稅務(wù) 優(yōu)惠將會減少。 4) 許多經(jīng)濟(jì)觀察家熱情推薦丹麥模式，這種模式的特點(diǎn)在于由專業(yè)從事抵押貸 款業(yè)務(wù)的銀行對放貸比率進(jìn)行嚴(yán)格控制。 5) 中國、新加坡以及其他國家和地區(qū)的政府和調(diào)控部門好像一直都在采取調(diào)整 放貸的比率，限制用于投機(jī)性房產(chǎn)購置的貸款數(shù)量，對在一定期限內(nèi)拋售的房產(chǎn)征稅等措施。,2. Passage Translation For the past two decades or more, urbanization in China has come relatively easily. As the country proudly claims, slums and shantytowns are rare compared with other developing countries. But ensuring a continuing net inflow of migrants into the cities as the youngest cohort shrinks will mean giving workers from the countryside more incentives to stay permanently (such as affordable housing and schooling). More money is being spent on these, but not yet enough. Cities say they welcome migrants, but some find roundabout ways of keeping them from settling. Beijing recently launched a set of extraordinary measures to tame property prices and ease traffic congestion that included all but banning migrants (one-third of the citys population) from buying homes or cars. In the name of improving safety, it has started closing down basement dwellings where migrants often live.,Text B Building Excitement - Can China avoid a bubble?,什么是合理房價(jià)，國外常用房價(jià)收入比的概念來界定，即房屋總價(jià)與居民家庭年收入的比值。盡管房價(jià)收入比是一個全球通用的指標(biāo)，但其合理范圍卻沒有嚴(yán)格界定。世界銀行認(rèn)為，合理的房價(jià)收入比應(yīng)該為3-6倍,圖1 1998-2013年全國商品住宅房價(jià)收入比情況 （來自新浪財(cái)經(jīng)）,Structural Analysis,