Five major risks in real estate investment in three or four-line cities

Source: Internet
Author: User
Keywords Real Estate Development Co. Ltd.
Tags .mall business credit developers development enterprises financial financial environment
Sinorama reporter Shanyan "zhejiang business" reporter visited Hebei, some small and medium-sized cities in Liaoning, Guangxi, Anhui and other provinces, as well as local investment in real estate enterprises, found that although the three or four-line city housing market has a lot of room for development, but enterprises in the investment process, still need to beware of risks from all sides,  In particular, policy risks and legal risks. The local government's risk of losing faith--in the process of urbanization in the three or four-line city, the succession of each Government will have a certain impact on the continuity of the property policy, and some officials ' credit is to let some foreign real estate investors lose huge.  For investors, in the early negotiations with the government to make a summary of the negotiations, and the government departments, even if the transition, but also to maintain the consistency of policy; the safest and smartest way to do this is to have a project in the tenure of the leadership. The risk of demolition of Old City--Hebei Binjiang Real Estate Development Co., Ltd. has been involved in the reconstruction of the urban village in Shijiazhuang for 5 years, but the problem of demolition is still the biggest headache for the company. In the reconstruction of the Old City, the relocated of relocation, resettlement and compensation are unavoidable.  Some developers do not pay enough attention to land expropriation and demolition work, so that after encountering difficulties unprepared to be caught in the distant persuasion mobilization work, bungled the scheduled duration. Experts remind, the developers of land expropriation and demolition work can not be separated from the local government and street, village and other grassroots organizations to help, with the local government as a strong backing, coupled with local village or street persuasion mobilization, the use of legal means and flexible strategy will be able to land expropriation and demolition work done.  In particular, we should use legal means to remove the legal disputes that may be brought in the demolition. Cooperation risk in joint development--in the case of real estate investment outside the province, when the capital strength is not strong or the local financing channel is not smooth, often use with other enterprises co-financing or one side out of the way of money. In such a cooperative relationship, there are often hidden contradictions.  To avoid the occurrence of contradictions, it should be "Brother Ming accounts", in cooperation before the signing of meticulous contracts, and strict implementation. Capital chain risk of poor financing--the main battlefield of small and medium-sized private housing enterprises is in the three or four-line city, even county, in these cities, the banking system is mainly state-owned four major banks, the other commercial banks are almost few. Local banks ' support for foreign property companies is relatively weak.  It is suggested that the investment in these cities before the developers, first understand the local financial environment, for the financial environment is not good, the financial system is not sound areas, as far as possible to use their own funds for investment construction. Analysis of the risk of the wrong market demand--three or four-line city to do real estate a difficult problem or local economic base is weak, and even did not shape the pillar industry and industry chain, people's consumption concept is relatively backward. Therefore, investors should do a full market research before investing, including local folk customs and customs, and so on, the real estate marketing and advertising must be combined with the local situation. If in a never seen and lived a complete and property management closed communitySmall cities, big cities to buy faster and fried concept of the method will be bruised and bruised. Let buyers immersive is the highest level of marketing and business thinking; in the three or four-line city, the reputation of the product is powerful.
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