Why is Country Garden heavily in debt？ How should the owners respond？

It is understood that Country Garden’s operating conditions are not optimistic and its liabilities are serious. The main reasons are as follows:

First, the overall sales of real estate are difficult, and it is difficult to withdraw funds.Affected by the real estate market environment, the current price increase is not large, and the price in some areas has shown a downward trend. The public’s awareness of buying houses is not strong, and it is in a wait-and-see state, which has affected the sales of faster houses. There are also a large number of existing houses, which makes it difficult for Country Garden to withdraw funds in the real estate development and construction stage.

Second, financing is difficult and it is difficult to continue to invest.Land acquisition, construction, publicity, sales and other aspects of real estate need a lot of capital investment. Country Garden and other real estate enterprises rely more on external financing in the case of slow capital withdrawal, and the government’s special fund investment is limited. However, the overall situation of the real estate industry is sluggish, investors are cautious about the investment in real estate projects, and external financing is difficult, which makes it difficult for Country Garden to continuously promote project investment.

Third, the format layout is wide and the capital chain is tight.Country Garden’s commercial layout is not limited to real estate, but also involved in business fields such as cultural tourism and catering. The expansion of commercial layout also represents a large-scale increase in capital investment, a decrease in internal cash flow, and an increase in operational risks. However, in many formats, once there are problems such as difficult capital return and unexpected recovery of creditor’s rights, it may lead to the tension of the entire capital chain and even the overall thunderstorm.

Facing the debt-ridden Country Garden, as the owner who buys Country Garden, he needs to pay attention to the operation of Country Garden, and the most important thing is to pay attention to the delivery of his own house. For example, whether it can be delivered as scheduled, and what is the quality of the delivered house?

First of all, the most direct thing to do is to go to the site to check the construction situation.Is it normal construction, or has it stopped, or is it a sparse performance construction? Once you encounter the latter two, you need to act immediately to avoid the future money room being empty. In addition, there is a detail to pay attention to when going to the scene. Ask the construction workers or security guards whether their wages are paid normally and whether there is any default in labor fees. If there is a problem of long-term arrears in project payment, it is even more necessary to pay attention.

Secondly, check whether the down payment and bank loan have been paid in advance as soon as possible.sellHow much money is left in the fund supervision account?The pre-sale house payment must be used for the construction of the house, and the relevant house payment is deposited in the pre-sale fund supervision account, which is a strong guarantee for the owner to deliver the house on schedule. Once it is found that the developer has transferred the pre-sale funds, it is necessary to immediately file relevant illegal investigations.

Third, both the owners who buy faster houses and the owners who buy existing houses need to carefully check the quality of the houses when they close the houses.Faced with the high turnover mode in the development and construction of Country Garden, the owners need to pay close attention to the quality problems of the houses. If quality problems are found, the owners can refuse to take over the houses as appropriate, requiring them to carry out maintenance within the time limit agreed in the commercial housing sales contract, and then take over the houses after the maintenance is improved;

Finally, if the delivery of the house is delayed, the first thing to consider is whether to want the house or check out. If the house has been built almost, such as the main body has been capped. At this time, the risk of asking for a house is relatively small, and you can work hard to promote the delivery of the house. At this time, our owners can unite and give full play to the role of strength with strength. However, if the site is still a pit and has been shut down for a long time, it is necessary to consider whether it can be handed over in the future. At this time, if you choose to work hard towards checking out, don’t think that many hands make light work. You know, in such a tight capital situation, how can developers return a house to so many people? Even if there is no thunderstorm, it can’t be realized objectively, let alone the situation of thunderstorm.

1. Whether the purchased house belongs to Baojiaolou project and whether there is any relief fund.

2. Excavate as many illegal points of the developer as possible through legal compliance, and convert these illegal points into the cost of the developer through illegal investigation and application and litigation. Let developers see that if they don’t actively perform the contract, there will be more costs and costs, and try to avoid developers from being ruined.

3. For the owner of the loan, you can try to stop the loan temporarily, that is, stop repaying the bank loan, or lower the mortgage interest rate. This loan suspension does not mean to stop lending rashly, but to negotiate with banks through negotiation and communication, and finally reach a written loan suspension agreement. For example, we once had an uncompleted residential building case in Taihe. We found that the bank had the problem of illegal lending. After the relevant illegal investigation, the bank took the initiative to find us to negotiate the loan suspension, and finally reached an agreement with our owner to temporarily stop repaying the loan. At this time, it will not affect the owner’s credit information, and will not be sued by the bank because of the default. At the same time, the central bank recently explicitly proposed to guide the reduction of the interest rate of individual housing loans, and the owners can also ask the loan banks whether there are relevant local policies and negotiate whether the loan interest rate can be lowered.

To sum up, the external real estate industry environment and internal business expansion are all the reasons that lead to serious debt problems in Country Garden. In the face of debt-ridden Country Garden, the owners must first take legal and reasonable measures to safeguard their rights and interests in purchasing houses and avoid property losses.