from the actual situation, most uncompleted developments are caused by the developers' own problems.

the developer's problems can be summarized as follows.

1. The capital chain is broken.

At present, many properties are unfinished, mostly because the developer's capital chain is broken.

seeing this, it is estimated that many property buyers don't understand why developers are still short of money when it is clear that their down payment and loans have been made to developers.

You can't simply use this logic to measure developers, because there is no provision in our country at present that the purchase price must be used for special purposes, that is to say, when you buy a house in this property, your down payment and loan must be used for the development of this property.

because there is no such regulation, the developer's funds are always moving back and forth. It is possible that the customer will buy the down payment and mortgage loan of a certain property, and the developer will use the money to expand the purchase of land or repay the debt.

this kind of capital is booming in the property market, and developers can still play when the financing environment is relatively relaxed.

However, if the property market is in a downturn, the market turnover is relatively low, and the financing environment changes, it becomes more and more difficult to raise funds. At that time, developers will not only face difficulties in repayment, but also have limited financing channels, resulting in many debts that are due to be repaid, and even the risk of default.

At this time, the down payment and mortgage loans obtained by some developers will be used to repay these due debts first.

but if there is too much debt, the developer can't cope with it at all, so there is no money for the development of the real estate, so the real estate can only be in an unfinished state.

For example, some developers can't pay their suppliers because of the tight capital chain. As a result, many builders and material suppliers are unwilling to build real estate for them normally, so they can only stop working.

2. Borrow usury from the people.

At present, many small and medium-sized developers will borrow some private loan sharks in order to alleviate the financial shortage under the difficult financing environment, but the interest of these private loan sharks is very high, and the monthly interest rate may reach more than 2%.

this kind of private lending can meet the short-term funds in the short term, but if the developer fails to pay for it for several months in a row, it will lead to rolling interest and eventually bear huge debts.

Moreover, when these developers borrow money from private lending institutions, they often use the name of the project as collateral. Although these projects may not go through formal procedures, once the money owed by developers to private lending cannot be repaid, these private lending will definitely disrupt the project, resulting in the failure to develop the project normally.

3. There is an unexpected situation.

There are many unexpected situations mentioned here. For example, some developers start to divorce after they get rich, and then they have to divide their property. The company's property will be divided, and the company's operation will be affected. As a result, the real estate development cannot be carried out normally.

another example is that some developers may die because of unexpected circumstances, resulting in no one taking over the management of the company. At this time, the operation of the company will also be affected, which is more vulnerable to fluctuations for those small developers. Second, external reasons

If the developer is operating normally and there is no problem with the capital chain, the real estate has gone bad, which may be caused by some external reasons.

There are various external reasons. For example, some buildings do not meet the planning requirements, but are forced to be launched through relationships, which may be stopped at any time.

In reality, many properties were stopped because they did not meet the planning requirements. For example, many properties in Shenzhen did not meet the planning requirements and were stopped because they obtained land illegally, and the properties were in a state of unfinished business for a long time.

For example, some projects of Hengda Sea Flower Island were stopped and demolished within a time limit some time ago, because these projects of Evergrande did not meet the planning requirements and caused ecological damage.

In fact, there are many similar situations, and this situation is generally related to the changes in local policies. For example, when the top leader in a certain place is in office, your plan may be consistent, but after another person takes office, your plan will not be consistent. This kind of uncertainty is hard to predict.

if the developer obtains land through some improper means, the building may be stopped at any time during the construction process.

in a word, the uncompleted development of a developer's property is not necessarily related to the down payment and mortgage, but mainly related to the developer's own operation.

Therefore, in order to avoid some unnecessary troubles when buying a house, it is recommended that you do not buy an auction house if you can buy an existing house. If you have to buy an auction house, you must choose those powerful developers, and you must investigate the project and buy it only after ensuring that there are no problems in the project.