Why can real estate developers rot, but ordinary people can't cut off supply? This is a question that confuses many people. In our society, real estate developers seem to have some privileges, while ordinary people are tied down. On the surface, this seems to violate the principles of fairness and justice. However, through an in-depth look at the real estate industry, we can discover some of the reasons for this.
The reasons for the failure of real estate developers are varied. On the one hand, they may face pressure to break the capital chain. Over-reliance on borrowing or selling pre-sale properties for funding, it is easy to get stuck in the event of a change in the market or a project that does not go well. On the other hand, some developers, in pursuit of high profits, may focus their resources on more profitable projects, resulting in other projects being shelved or finished. These factors make it possible for developers to end up. These developers usually have significant financial power and are able to endure the enormous financial pressures that come with failed projects.
Even if the project is finished, they still have enough resources to process and transfer funds. In contrast, ordinary people usually have limited funds and cannot afford to mortgage their property and continue to pay the loan. In some cases, the government provides some financial support to developers or provides them with legal protection. This means that even if a project fails, developers can rely on government support to weather the storm. For ordinary people, there are no similar policies and legal protections. They can only rely on their own to repay the loan, even in severe financial difficulties.
Real estate projects involve many and varied processes, including land purchase, building construction, approval procedures, etc. Due to a variety of factors that can lead to project failure, developers can excuse these issues to stop the project, and ordinary people cannot distort reality like developers. They can only fulfill the contract and continue to pay the loan. The attitude of society towards real estate developers and ordinary people also plays a crucial role. Property developers are often seen as the backbone of the economy and the main force of investment, while ordinary people are seen more as a vulnerable group. This concept makes the society pay more attention to the protection of the rights and interests of developers, and does not pay enough attention and support to the plight of ordinary people.
In terms of land transfer and planning approval, government departments often have certain flexibility, and lack effective supervision and evaluation mechanisms for developers' commitment and business capabilities. This has led some developers to claim high value at the outset of the land acquisition, but lack the funds or capacity to move forward with the completion of the project. In addition, there is also a certain degree of flexibility in the government's regulations on land transfer, and developers can transfer or terminate projects by paying certain liquidated damages without bearing more responsibility. Therefore, the lack of strict government policies and regulations allows developers to avoid risks and responsibilities through unfinished buildings.
Why can't the common people cut off their supplies? One of the reasons is legal and contractual constraints. The purchase contract generally stipulates that the buyer must pay on time, and in most cases, the buyer does not have the right to unilaterally terminate the contract. Therefore, when ordinary people encounter difficulties, they often cannot choose the option of cutting off supply. In addition, cutting off supplies can be an adventure for ordinary people. The purpose of buying a house is to have a stable living environment and the possibility of asset appreciation. If we unilaterally stop paying, we may face risks such as legal action and damage to our credit history. These risks make it unwise for ordinary people to cut off supplies.
Under the current home purchase loan policy, ordinary people often need to buy a house through long-term mortgage repayment, which makes them more burdened in the purchase process and difficult to support the economic pressure of emergencies or life changes. At the same time, banks often add strict loan default clauses when signing contracts, requiring borrowers to perform repayment obligations as agreed in the contract, and if they fail to repay on time, they will face high penalty interest and the risk of losing property rights. In addition, due to the higher interest rate of the purchase loan, the economic losses faced by the people after the interruption of the supply will be even greater. Therefore, the reason why ordinary people cannot easily cut off the supply is mainly due to the strict implementation of loan contracts by financial institutions and the high return of risks.
Real estate developers can rot with impunity and the issue of unbreakable supply by the people involves the judgment of social fairness and justice. In the process of unfinished buildings, developers may harm the interests of buyers, damage the image of the city, and have a certain negative impact on economic development. However, since developers usually belong to market entities, their behavior is often bound by the market economy and contracts to some extent. Even in the event of a rotten building, developers can mitigate the risk by transferring and cleaning up assets, while ordinary people may face the risk of losing their investment and bear more economic pressure. Therefore, whether to allow real estate developers to cut off supply with ordinary people requires the government and society to comprehensively consider fairness, justice and the balance of market mechanisms.
We should not only see the unfairness brought to ordinary people by the problem of real estate developers, but also the difference. Real estate developers are business entities that face market competition and business decisions. As consumers, ordinary people buy property to meet their own needs. In order to ensure fairness, the government and regulators should strengthen the supervision of the real estate industry, protect the rights and interests of the people, and prevent the occurrence of real estate developers. Real estate developers can rot without punishment, while ordinary people cannot easily cut off supply, which is the result of a combination of factors. The lack of restrictions and constraints on government policies, the strictness of the housing loan mechanism, and the society's consideration of fairness and justice are all reasons for the existence of this problem. To solve this problem, the government needs to strengthen the supervision and management of the real estate industry, and at the same time improve the housing loan mechanism to protect the legitimate rights and interests of the people and achieve social fairness and justice.
Property developers can rot and ordinary people can't cut off supply, and although it seems unfair on the surface, there are some reasonable differences between them. Understanding these differences will help us better understand the characteristics of the real estate industry and take corresponding measures to protect the rights and interests of ordinary people. There are many reasons why real estate developers can rot and ordinary people cannot cut off supply. It involves the capital strength of developers, policy and legal support, the complexity of the industry, and society's attitude towards different groups. To solve this problem, we need to address policy, legal and social awareness to provide more protection and support to ordinary people, so that they can have more choices and opportunities when they encounter difficulties.