Off-plan houses are sold when the construction has not yet been completed, and when there is any problem with the developer's funds during the completion period, the buyers have to bear the risk of buying a rotten house, so the off-plan housing system has always been criticized, so why has the state not completely banned the off-plan house? There are four main reasons:
First, people's purchasing power is limited
On the one hand, in the past twenty years of housing reform, the average wage of the society has risen several times, while the house price has increased by more than ten times, and it is not so simple for the average family to take a house by itself; on the other hand, in the context of the mainland's "housing and not speculation", the relevant departments have strict supervision of loans, even if we can successfully obtain loans, we must repay a lot of interest, which is another expensive purchase cost. The supporting facilities around the off-plan house are not yet perfect, the sales situation of the house is not yet known, and the overall price is lower than the existing house and second-hand house in the same area, which is a big positive for most families with insufficient purchasing power.
If all the houses on the market become existing houses, there will be more families who cannot afford to buy a house, if the housing problem is not solved, people's work, children's schooling may become a big problem, the real estate industry will also enter a comprehensive downturn, when the national economic development momentum is insufficient, the goal of people's housing is difficult to be achieved.
Second, the cyclical nature of real estate is long, and developers need funds for project operation
Before the completion of the community to go through a lot of processes, all projects are completed at least two or three years of time, and the developer in the early stage of land, medium-term construction, the later sale of a certain amount of funds, this is only a project, generally larger housing enterprises have several projects running together, these funds can only be through loans or the sale of off-plan housing back and forth.
If the pre-sale system is abolished, the cash flow of the developer will not be guaranteed, the risk of operation will become greater, and the phenomenon of house ruin will not only not be suppressed, but will also become more and more intense, which is simply an inversion. If a large number of real estate developers go bankrupt as a result, people's enthusiasm for buying houses will go down to the next level, and the vicious closed loop formed by this is difficult to break through other channels.
Third, the quality of the house may decline after the cancellation
When the developer has limited funds at hand, some housing companies can only open source and reduce the cost by changing low-quality building materials and other means of reducing the quality of the house, and the life of the house will also be affected, if some small problems are better to say, the most terrible thing is that those "dark diseases" that are not visible to the naked eye, we have no idea when these problems will appear in what way. Buyers can only buy poorer quality houses at higher prices, so it seems that the risk of off-plan housing is not worth mentioning.
Fourth, developers are used to pre-sales
After the pre-sale system is abolished, the scheming developers will not sit still, they can only accelerate the return of corporate funds in disguise through other means, these means are not yet known, and developers have become more difficult to supervise, which is not necessarily a good thing for home buyers.