Professor pushes donation-based retirement

Chang Chin-e (張金鶚) a professor at National Chengchi University (政治大學) and the author of many books in the field of real estate, said that he personally will carry out the donation-based scheme for his own retirement.

He has been dubbed by the public and media as the “commander-in-chief of bearish sentiments” in the housing market — a moniker which Chang has rejected, stating that he is not perpetually bearish and that he publicly affirmed the 2003-2007 period of reasonable house price rises.

Chang outlined his theory of the four types of real estate and housing transactions; namely, “harming others while also harming oneself,” “harming others to benefit oneself,” “benefiting others while harming oneself” and “benefiting others while benefiting oneself.”

According to Chang, “harming others while also harming oneself” refers to the act of speculators impetuously entering the market and benefiting previous speculators by inflating housing prices. In this scenario all parties do not benefit, and the new speculators only contribute to persistent artificially high prices and harm future generations of potential homeowners.

He categorized the act of banks financing speculative property purchases as a practice that harms all parties, as speculators are harmed as the housing bubble bursts, while banks face default of loans.

“Harming others to benefit oneself” refers to incidents where one party harms another for its own gain, such as when construction companies skimp on building materials, rampant speculative investments, and spreading of misinformation by real estate companies, according to Chang.

“Benefiting others while harming oneself” refers to the current policies put forth by the ruling administration, including the luxury tax, the selective regulation on credit and financing limitations imposed by the central bank, and the proposal to base property taxation on actual market prices, said Chang.

These policies may harm certain groups such as speculators, high-tier buyers, and multiproperty owners, but benefits the general public overall.

“Benefiting others while benefiting oneself” refers to Chang's own proposal of donation-based retirement. Chang cited the example of an elderly man who donated his residence to the Eden Social Welfare Foundation (伊甸社會福利基金) in exchange for post-retirement care for the rest of his life. Chang also urged construction companies to improve building quality and encouraged management companies to revitalize and repurpose unused properties.

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