For the vast majority of people, winning the lottery or demolition has always been seen as a quick way to change the fate of their lives. However, the chances of winning the lottery are extremely low, in stark contrast to the fact that demolition has made some people rich overnight. When owning a spacious home or a property in a prime location, it is really possible to embark on the road to affluence. However, 2021 brought new policies for home remodeling, which heralded the collapse of the dreams of those expecting wealth through demolition, as large-scale demolitions would become a thing of the past, which could be inconvenient for both groups.
In the past 20 years, the mainland real estate market has experienced a boom, and real estate investment has grown rapidly from less than 5 trillion yuan to 14.14 trillion yuan, which is an impressive phenomenon. However, this trend may slow because many former homebuyers have relied on demolition to get rich. However, now the Ministry of Housing and Urban-Rural Development has made it clear that for old residential areas and shantytowns, the way of renovation will be changed, and it will not be demolished. For older neighborhoods, the first priority is to renovate, not immediately demolish. The state is currently carrying out this renovation project, and by the end of last year, 39,000 old residential areas had been renovated. This initiative has improved the living comfort of residents, strengthened the building structure, and added elevators in many communities, which greatly facilitates the travel of residents. However, the proclamation and implementation of this policy may cause inconvenience to both categories of people.
House flippers disappointed
The first group of people are those who speculate on house speculation. Previously, demolition households were often able to allocate new homes and have the option to receive compensation, which was relatively economical. Many demolition households became rich overnight through these compensations. In this case, some people will inevitably be inspired to actively buy properties in old neighborhoods, but they do not buy these properties to live in for themselves, but in the hope that in the future they can realize their dream of becoming rich overnight through demolition. Now that the state has spoken out, it means their dreams may be shattered. The purchased property can only be vacant, and the living environment of the old community is obviously not as good as the new community, and the living experience will be greatly affected. In addition, the state may also impose additional taxes on those who own multiple properties, which will further increase their losses. However, who let these people have bad intentions? And now that house prices are so high, it is impossible to completely rule out the existence of house speculators. This isn't good news for first-time homebuyers who have been saving for a long time, because every penny they've earned is precious.
Renovating an old neighborhood is a deliberate decision. In recent years, the construction of residential areas is usually dense and high-rise, and once demolished, the number of residents involved is bound to be large. This will increase the cost of demolition and relocation in the country, while at the same time providing suitable places for these people to live. In contrast, rectifying these neighborhoods to eliminate potential safety hazards is preferable for long-term residents. Perhaps the biggest concern of older residents is inconveniences such as safety and the lack of elevators in buildings, which the state has fully taken into account. As a result, there may be fewer demolition households in the future, and those who hope to get rich should re-examine their options. After all, earning income from your own efforts is the surest way, and those who pin all their hopes on demolition are doomed to disappointment.