Is pre-sale of real estate the same as fraud? The People's Daily speaks out and the developers are not sitting still!

Now that winter is approaching everywhere, with snow already falling in some areas in the north and cooling temperatures and cold winds in the south, how are those living in rotten buildings doing in such weather conditions? With six wallets and a 30-year loan, they ended up with an empty concrete frame, some of which are still dirt pits to this day, and no water or electricity.

All of this comes from the pre-sale of real estate from outside the country into the inland system, but just 20 years, has become the industry norm, this system is intended to be good, objectively speaking for the real estate market construction cycle, scale expansion has certain positive effects, but “pre-sale” is more a test of the spirit of contract between people, trust! degree.

For developers, the house has not yet been built, you can sell, recapitalization, in extreme cases, the land has not been sorted out, not a shovel of dirt has been dug yet, with a drawing to start buying a building, the equivalent of an empty glove, but for consumers, it is simply wishful thinking fraud!

Take the hot search of “other happy city” for example, originally 2015 should be handed over to the community, until this year is still in the “half-built” state, owners pay mortgage, rent, plus other cost of living, instead of spending two sets of money to live in one house. Simply live in an abandoned building with wild dogs wandering around.

This “Happy City” is not an isolated case. In the People’s Network created the only national message board for leading cadres “leadership message board”, 10 years, there are more than 8,000 and “rotten” related to the message complaints, involving more than 3188 buildings, of which, at least 429 messages that they or Others are already living in the situation of the rotten building.

Relying on owners and developers alone, it is difficult to bring the end of the building back to life, not every end of the building can get public attention, and not every end of the building has the possibility of restarting, but the end of the building is only one of the problems brought about by the pre-sale system, other quality disputes, delayed delivery, shoddy materials, etc., the contradictions between owners and developers are endless.

In the face of the developers can delay, can push push the attitude, owners usually only “broken teeth to swallow”, but the negative impact of the pre-sale is like a snowball rolling bigger and bigger, whether to buy or not to buy a house, “cancel the pre-sale” is also getting louder and louder.

Even the Xinhua News Agency also published an article called “many rotten residential “unsolved” into the people’s livelihood pain”, followed by the People’s Daily article “do not let the” rotten “ruined the owners of the safe house” called for local strengthening of supervision, re-examine the problem of rotten buildings, and even mention.

“The reform of the pre-sale system is also a powerful measure to reduce the formation of rotten housing”.

Finally, there have been local trials to cancel the pre-sale of commercial housing system, for example, Hainan proposed to “fully implement the existing home sales system”, although most other places only introduced for comment, not a pilot, but from the existing trend, the cancellation of the pre-sale of commercial housing system is almost imperative.

This is almost a fatal blow for developers, real estate construction needs a lot of money, easily several hundred million investment, if not pre-sale, the cost is too high, may be every day, hundreds of thousands, hundreds of thousands of interest expenses, if not completed in time, sold out, it will really kill the developer, so now the most important thing is to solve the developer’s financial risk, such as The “three red lines”.

However, there are those who believe that “pre-sales” is a viable system. The idea is that if existing homes are sold, developers will add interest and costs to the price of the home, causing the price to rise.