unit3propertyboom

1、Unit Three Property Boom,1. Lead-in2. Text A: Between a Rock and a Living Space3. Text B: Building Excitement,,,Lead-in,Lead-in,,,,,,,These are pictures of the top six skyscrapers in the world. Can you recognize the

2、m? 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 vac

3、ancy 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housi

4、ng 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    低價住房low-cost housing    二手房second

5、-hand house    房產(chǎn)估價師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？

6、有多少間睡房和客廳？　　B： Its gross area is approximately nine hundred square feet. There's 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

7、 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.　　當然可以。房子面積約九百平方英尺

8、，單位設計為一個客廳、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

9、mortgage loan. Also, the developer will offer another ten percent mortgage to purchasers.　　平均售價約港幣五百萬元，。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購者。,Text ABetween a Rock and a Living Space,'Subprime Mortgage',A type of m

10、ortgage that is normally made out to borrowers with lower credit ratings. As a result of the borrower's lowered credit rating, a conventional mortgage is not offered because the lender views the borr

11、ower 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

12、 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

13、 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

14、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 con

15、sequences 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 &q

16、uot;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 e

17、conomic 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 seabetween a

18、 rock and a hard place 進退維谷,進退兩難,Structural Analysis,unprecedented (Line. 7, Para.1) adj. never have happened before…example: an unprecedented expansion in population and industrySuch a move is rare, but not unpr

19、ecedented.,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 m

20、an’s 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, th

21、ey agree to provide any money needed to cover losses 為…提供經(jīng)濟擔保example: The government will have to create a special agency to underwrite small business loans. underwriter n. 保險公司，擔保人,Part I Words and Expres

22、sions,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

23、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

24、 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)

25、 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 Wor

26、ds and Expressions,Part I Questions about Part I,Q1. What does the Robert Shiller’s index tell us? It is an index showing the fluctuation of real house prices in America. According to it, the house prices

27、 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 less

28、ons 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 equit

29、y 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

30、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 ta

31、rget 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)

32、 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 borrowe

33、r 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 comme

34、rcial 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 a

35、long 進展, 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 assist

36、ance or sth/someone turned to for assistance or security 求助，求助對象,（商業(yè)，法律） 追索權Synonym: resortexample: His only recourse was the policy.The founding of the United Nations enabled its members to settle their differences

37、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 the

38、y 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 mo

39、ney or public money, especially taxes 會計的，財政的example: fiscal deficit 財政赤字fiscal policy 財政政策fiscal revenue 財政收入fiscal year 財政年度,Part II Words and Expressions,disentangle (Para. 7)v. Separate from things that

40、 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（復雜的狀況）example: Shake your rope and let it disentangle gradually.It’s i

41、mpossible to disentangle the myth from reality.,Part II Words and Expressions,liquidity (Para. 8)n. In finance, a company’s 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

42、example: market liquidity 市場流動性excess liquidity 流動性過剩Hong Kong's financial markets are characterized by a high degree of liquidity.,Part II Words and Expressions,legitimate (Para. 12) adj. lawful,

43、based on known statements or in accordance with recognized or accepted standards or principles 合法的，正當?shù)模侠淼膃xample: Sickness is a legitimate reason for asking for leave. The New York Times has a legitim

44、ate 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 ab

45、le to sell them again at a higher price and make a profit. 投機的example: speculative business 投機生意 The hotel was built as a speculative venture but never completed.,Part II Words and Expressions,Q1. What

46、 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

47、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

48、. 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 lo

49、ng-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)

50、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 u

51、nderwriting 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) Firs

52、t 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 ma

53、rkets.,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 de

54、fault. (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 f

55、ails 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 dri

56、ving 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 import

57、ant 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 borrower

58、s 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 syste

59、m 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 ju

60、st 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 an

61、d 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，舉債經(jīng)驗e

62、xample: leverage effect financial leverageOne 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 no

63、t 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）.,

64、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

65、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)

66、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 gradual

67、ly 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

68、. 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 wi

69、ll 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)

70、 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. Paraphrasing1

71、. 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

72、and making the bust worse.2) Imposing rigid limits on how much people can borrow either disenfranchises some—first-time buyers and the self-employed tend to suffer most—or increases the risks for those resorting to a mo

73、re expensive, unsecured way of financing in order to bypass the regulation.3) Despite the evidence of Mr. Shiller‘s chart, lots of financiers and politicians tried to convince themselves that things were not that bad t

74、his 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