Real estate can make so much money, why are so many real estate companies still bankrupt?

Because of competition issues. Although real estate makes money, the number of houses purchased is not large, and it is in a state of oversupply, so those who can't compete with others will be eliminated.

Real estate makes money because you have strong capital, can survive, the income is slowly rising in the later stage, not that you can sell it immediately after you build a floor of real estate, and not everyone can afford it, and the importance of choosing a place, one accidentally becomes an unfinished building.

Because these real estate developers borrow a lot of money from the bank when they build a house, these money will generate a lot of interest, so once the houses built by these real estate companies cannot be sold, then they will be overwhelmed by huge interest, and eventually lead to the bankruptcy of real estate companies.

Real estate is indeed a very profitable industry, generally there will be 20% 30% of the profit, of which 10% is interest, because the developer's own funds are almost 0, and then the cost of sales is about 10%, and the new real estate to do some advertising to give commissions, some real estate will also invite some stars to help, and then the last 10% of the profit is probably in the inventory, mainly land inventory or projects for sale.

Because developers are investing money in other projects, they are heavily in debt.

Because the developer's money is used to build the house, their debt is very high, and they can generally only wait for the house to be sold.

Developers are indebted because the cost of acquiring land is getting higher, because there is a clear upward trend in the cost of building a house, and because companies need a lot of money to expand.

After seeing the high housing prices in China, many people think that developers should be able to make a lot of money, but in fact, developers not only do not make too much money, but owe a lot of debt.

Due to the scarcity of the city's ** area, this makes it necessary for developers to pay high costs if they want to acquire land in the ** area of the city. Although developers can eventually recover the cost of land acquisition by raising housing prices, the higher cost of land acquisition will indeed bring great pressure to real estate developers. <>

Although the house is constantly being used, the labor cost also makes real estate developers feel great pressureBecause the construction of the house requires the hiring of a large number of professional engineering teams, which makes the developer have to pay a huge amount of money before the first house, if the house sales are not good, then it will inevitably lead to the developer owing a huge amount of debt. <>

Due to the serious bubble problem in real estate, many real estate companies are constantly expanding their market share. Although this will bring rich returns to the enterprise, but in the process of expansion, the enterprise also needs to get a large amount of capital as support, if there is a lack of sufficient funds, it will inevitably lead to the rupture of the developer's capital chain, and at the same time, it will also lead to the developer owes a huge amount of debt. <>

I hope that real estate developers will stop their own expansion, because if they expand too fast, then they will inevitably cause the funds to not keep up with the speed of the developers.

Selling a house is so profitable, why do some developers still owe debt?

In life, for everyone, they want to be able to buy their own house after they enter the society. Because for every Chinese, there must always be a home to have a sense of belonging, because buying a house is one thing that everyone will do, so in the past few years many real estate developers will make a lot of money, it can be said that real estate is a profiteering industry, some people even through the real estate business success, become China's richest man, it can be seen how profitable real estate is, but with the real estate developers everywhere, many people are eyeing this cake, which also leads, Nowadays, many real estate developers are facing the danger of bankruptcy with debt.

In fact, real estate in today's era to make money is not far less than the original much, if the capital turnover can not be opened, will face the possibility of bankruptcy, just like many places we will see some unfinished buildings, these are the bankruptcy of real estate developers, I know that many real estate developers are to bank loans, to buy land, build buildings, but also to pay staff salaries, advertising and other expenses, the cost is also very high, if not in time to sell the house, Then the interest from bank loans will be a fatal blow to many property developers.

In addition, there are a lot of real estate developers nowadays, and the competition is relatively large, if you choose to sell the house at a low price, then the profits you make, after repaying the bank loan and interest, the money you can earn is also very small, and it may even be possible to repay the interest, so now the real estate industry is also a relatively dangerous industry, if it is good, you can directly turn over, and if it is not good, you can only face the possibility of bankruptcy and bankruptcy. And I believe that with the current proliferation of real estate developers all over the country, housing prices should slowly come down in the future, which is a good thing for many young people.

Because these developers are mortgaged from the bank, the money they earn needs to be repaid to the bank, and they will continue to take out loans to develop new real estate in the later stage, and there is basically no active capital in hand, so they will be in debt.

In addition to high-premium land, high interest is also one of the important costs of real estate companies, so it is natural to have a high debt ratio.

The money earned by real estate companies has gone to repay debts, that is, it has flowed to the shareholders and creditors of real estate companies, and some of it has flowed to the employees of real estate companies and local taxes.

Real estate bankruptcies can have wide-ranging repercussions across the economic system. Here are some of the possible consequences:

Sudden recession: The real estate sector is one of the main economic pillars in many countries. If the real estate market goes bankrupt, it will lead to a rise in unemployment, the closure of businesses, and ultimately an overall recession.

Insolvency of banks and financial institutions: Banks and financial institutions often provide large amounts of loans and financing to the real estate industry. If the real estate market collapses, these financial institutions could face a huge risk of debt default and bankruptcy.

Property market crash: If the property market collapses, it will lead to house prices**. The real estate market is one of the biggest assets for most people, and if the price of the property is **, it will cause huge losses to the property owner.

Reduced income: The real estate industry is often one of the main taxes. If the housing market collapses, tax revenues will be affected, which could lead to cuts in public services and infrastructure.

Overall, property market bankruptcy can have far-reaching effects on the economy as a whole, and it's important to note that the impact may not be limited to the real estate industry itself.

As we all know, in the past two years, because of the upgrading of regulation, the property market has entered a depression period, and this year it is because of the epidemic situation, the property market has directly entered the cold winter period, it can be said that the development of the property market this year is not ideal, a large number of real estate companies have declared bankruptcy because of the break of funds, or other reasons, from the last year to the present, a total of 512 real estate companies have declared bankruptcy, a large number.

Since the rise of the real estate industry, buyers and developers are incompatible, real estate companies not only raise housing prices, but also cheat in the quality of housing, some angry consumers are angry and say: why hasn't a certain developer gone bankrupt. What are the consequences if a large number of developers go bankrupt?

Consequence. First, the number of unfinished buildings is increasing.

The developer occupies an important position in this link of the house, it can be said that there is no house without the developer, it can be seen that the developer plays an indispensable role in the production of the house, but there are many risks in the link of the house to build the first, the developer bids to get the land from the state and then step up the construction, if in the process of construction, the developer's capital chain is broken, and there is no capital flow inflow, then the developer will announce the cessation of the construction of real estate in order to minimize the loss, and will announce the collapse, Either way, there will be unfinished buildings.

For example, India, the situation in India is very similar to that of our country, after India began real estate regulation in May 17, at the beginning of 2019, a large number of developers went bankrupt and collapsed, resulting in unfinished buildings all over India.

For example, in Hainan in the 80s of the 20th century, when Hainan had just been established as a province, a large number of aspiring young people came to Hainan for development, but it was also because of the black storm behind it, which led to economic damage, and a large number of developers left Hainan, leaving a large number of unfinished buildings.

Consequence. Second, the people are panicked and the society is in turmoil.

The real estate industry is an important pillar of China's national economic development, and the real estate industry has an intricate relationship with various industries in China.

Think about it, if a large number of real estate companies go bankrupt, other industries will also be affected, light capital loss, heavy social and economic instability, therefore, a large number of real estate companies bankruptcy is not a good thing, if there is a careful look.

Therefore, don't expect housing prices to fall to the price of cabbage, and expect a large number of real estate companies to go bankrupt

Based on the downturn in the real estate industry in recent years, many people will think that real estate has collapsed, but it is not.

It is impossible for real estate to fall, but it is unlikely to return to the previous peak, because real estate is the backbone of the domestic economy, and it is reported that the fiscal revenue of real estate in a certain place accounts for 80%, which shows that real estate is needed, and the people also need real estate.

If the real estate falls, it will not only affect the real estate industry, but also the related industries (construction companies, decoration companies, building materials sales companies, etc.), a large number of workers will lose their jobs, and the loss of the economy cannot be compensated by any industry.

And then why can't we return to the peak state, before the overall development and construction of domestic cities, now there are many cities tend to be saturated, population growth also tends to decline, real estate is mainly to build housing, the population does not need housing, build more is equivalent to empty houses, no economic value, so will be through the demolition of old communities and rural transfer to the city to improve the demand for housing.

Therefore, real estate will tend to develop steadily or develop with a slight downward trend, and it cannot fall down, nor can it grow at a high speed.

First of all, most property developers who can't start low prices will start low prices in the name of in-house. It's like buying vegetables at the market. If someone else buys leftover vegetables, there will definitely be a discount.

Friends who have bought a house should have seen that a certain building has been open for three periods, but there are still several apartments that have not been sold out in the first period. At present, the discount is very large, and it can generally be discounted by 95% or even more. For most people, as long as real estate is on the right track and ready to buy, I'm sure there will always be someone willing to buy it.

Just because you can't sell in 2019 doesn't mean you can't sell in 2020, right?

Second, the most bad developers can mortgage their property to banks, and even individuals can mortgage their properties, let alone developers? I believe that those who know a little about real estate should know that in addition to initial funding, developers rely on bank mortgages for funding, regardless of the stage of land acquisition and housing construction.

For example, when a developer buys a piece of land for $100 million**, most developers will mortgage $100 million or more to the bank to obtain initial construction funds. When the building meets the pre-sale conditions (generally about 30% of the project), the developer starts to ** the building and receives a 30% down payment. After the buyer gets the mortgage, the bank will give the remaining 70% of the house price to the developer.

Therefore, even if the developer's house cannot, the developer can mortgage the house to the bank to get the funds. Unless there is unfinished business or most of the property is unable, the developer may incur a loss. After all, the 30% down payment given to the developer by the buyer is also a lot of money.

Thirdly, if there is no large-scale **, the developer will directly declare bankruptcy. Two days ago, I also talked to my friend about the bankruptcy of the company. We should know that today's developers are all shares****, which means that they will only have limited liability until the bankruptcy court declares that they can only liquidate their existing assets.

There is no doubt that it is the developer's real estate and land that will be liquidated in the end. There have been many cases of bankruptcy due to the company's mismanagement. Who gets hurt in the end?

There is no doubt that it is the banks that issue the loans, and it is the people who buy the houses. After buying the house, I found out that the real estate I bought was built by the developer against his will.