4 ms·
Pretty common situation that happens in a lot of countries. If the market is OK the developer takes deposit and the apartments and sells them to someone else. I
by rr808 4y ago
Pretty common situation that happens in a lot of countries. If the market is OK the developer takes deposit and the apartments and sells them to someone else. If the no one wants to buy the developer goes bankrupt and people who bought lose everything they've paid so far - bank forecloses on the apt which isn't worth much if anything.
- Grimburger 4y agoIt's happening right now in Australia, big builders are going bust leaving homes half finished or not built. Input costs have risen so much on fixed price contracts that there's really no other recourse for them. Buying off-plan is common worldwide despite what others are saying in here.
- chii 4y agoThe problem in australia is slightly different - the off-the-plan builds are paid pro-rata on the construction, not in one go. So it's still a loss for those purchasers, but the builders don't get the full payment upfront like described in china.