Expose the truth of the interlocking funds of developers.

Ring 1: developers have little self-owned funds and financing difficulties.

According to the regulations, the developer's own funds for developing a real estate are at least 30%. However, due to the poor qualifications of small and medium-sized developers and weak financial strength, it is difficult for banks to raise funds, so most of them require contractors to invest in construction.

Ring 2: Require the contractor to contribute to the construction.

If the developer holds the plot but the development funds are insufficient, the contractor thinks that the plot has the prepayment conditions and will carry out prepayment construction according to the developer's requirements. However, according to the qualification of the developer and the amount of its own funds, the payment method of the contract is agreed. Generally, the pre-contractor requires the developer to start paying the project progress payment after the foundation or basement is completed, or pay it with other contract quotations. If the location attribute of the plot is good enough, the payment terms of the contractor's capital construction are relatively loose, and houses and real estate can be used as payment terms.

The third ring: encounter market regulation or sales strategy mistakes.

Once the buyers encounter market regulation or uncertain market outlook, they will postpone or suspend the purchase plan. At the same time, if the developer's pricing strategy is obviously higher than the market expectation or its products are not absolutely competitive in the current market, then the low sales rate will become a fact that must be faced.

The fourth ring: the house is not easy to sell.

The regulation of market policy or the adjustment of sales strategy can't keep up with the market rhythm, and the slowdown of sales has become an inevitable fact for developers.

Fifth ring: unable to pay back the money in time

Due to the unfavorable sales repayment and the strict control of banks on the development loans of small and medium-sized developers after the credit contraction, some developers who are unable to return to heaven began to borrow usury to maintain their basic operations, and the high interest and financing costs have swallowed up the expected profit rate of many developers.

Ring 6: deferred payment of advance payment.

Due to the poor repayment channel, the bank financing channel is blocked, and the project payment cannot be paid on time. Some developers can only pay a small part according to the contract.

Ring 7: The contractor stopped work and instigated the workers to make trouble.

After the first batch of funds paid by the general contractor comes into play, the later materials and workers' wages must be implemented in accordance with the contract provisions of the employer. The contractor will also subcontract many projects to different small contractors according to their categories, and the small contractors will be responsible for paying the workers who handle affairs. Once the developer is unable to pay the project cost, the general project will stop, and the workers who get back their wages will start asking the developer for money directly. Some workers are really instigated by the contractor to ask developers and government functional departments for wages and make trouble.

Ring 8: The acceptance of the project is unqualified.

If the developer can't raise funds or part of the funds within a short period of time after the building is shut down, the contractor can't finish the project according to the agreed time, and the main part can't be perfected. Finally, the basic strong and weak electricity, fire fighting and three-way elevators can not be installed up to standard, nor can they pass the relevant acceptance of relevant departments.

The ninth ring: delayed delivery of the building

If the developer fails to deliver the house that meets the delivery conditions to the buyer within the delivery period agreed in the pre-sale contract of commercial housing, it constitutes a delay in delivery. Due to the developer's economic problems and the illegal or impossible completion acceptance procedures, the developer can't deliver the house or can't deliver it in a short time, which is an abnormal delay in delivery.

Ring 10: Owners defend rights and disturb people.

If the developer still fails to perform the contract within a reasonable period after being urged, it will trigger a series of rights protection actions by the owner, from blocking banners to large-scale demonstrations, requiring the developer to bear the responsibility for breach of contract, compensate for losses and even request to return a house.

Huan 1 1: Lack of financing channels.

Owners hold large-scale rights protection activities, forcing developers to try to solve the debt problem through financing. Most small and medium-sized housing enterprises with weak financial strength can only rely on high-cost private financing. Once there is a problem with real estate, the financing channel will be narrowed and it will face the tragic fate of capital cut-off.

Huan 12: Misappropriation of advance payment

At present, the advance payment of house payment has accounted for more than 30% of the real estate development funds, forming a situation in which the self-owned funds of housing enterprises and bank loans are "divided into three parts". When the fund's "grain-cut plan" forces developers to prepare grain for the winter, it becomes the first choice to misappropriate the advance payment for the project, and the opaque management mechanism of the advance payment also provides operability for developers to operate illegally.

Ring 13: The event is deadlocked or deteriorated.

General property buyers have no way of knowing the whereabouts of funds, until problems such as affecting the construction progress and project quality and delaying delivery appear one after another, which leads to great disputes between property buyers and developers. In order to get more funds to pay for the project, developers will also separate the ownership of land from the ownership of houses, and they will take risks to mortgage the land and houses many times, which will lead to greater risks.

Ring 14: even leads to a bad tail.

Once the developer's capital chain breaks, it will easily lead to the suspension of real estate, and the result is that small owners fall into a long nightmare of safeguarding rights.

(The above answers were published on 2016-12-21. Please refer to the actual situation for the current purchase policy. )

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