China Evergrande Real Estate Fallout

I've been following this for a few weeks now, it's like a train wreck in slow motion.  CCP is trying to do a controlled implosion on Evergrande, good luck with that.

Buying new home in China is pretty crazy.  Buyer are required to pay in full upon signing the contract, even before the home is completed and sometime even before the construction is even started.  Lots buyer are left with nothing when the builder bankrupted before the construction is completed. 

Not sure how much impact this will be globally but definitely a big impact on China.
 
Sounds like a ponzi scheme.
I wonder how much money evergrande upper ups funneled into
Australia
Canada
USA

Family prob already living overseas.  time for dad to join them if they can get out of china.
 
It's not uncommon to buy pre-build properties in Asia.  In Makati (Philippines) many new condos are sold as pre-build/pre-selling, to buy you need to pay a down payment, which can be paid up front or over a specified period while the condo is under construction.  In Malaysia I heard the government imposed payment schedule for under-construction condos, so you only have to pay xx% when the structure is complete, then another xx% when interior walls/doors/windows are in, then another xx% when utilities are in, and so on.

There are some caveats to buying condos overseas.  For example in Taiwan new-build condo complex will have very nice staffed reception area, sometimes with a leisure hall with nice furniture, grand piano, chandelier lights, etc.  While the building is being maintained by the builder everything will look nice and grand.  As soon as maintenance is turned over to the residents they will immediately vote to decrease funding.  So in Jan when you visit you might be welcomed by a pretty receptionist in brightly lit reception, with helpful door attendant assisting with your luggage.  6 months later when you visit again you find a dim reception area with 1 grumpy uncle/security guard behind desk -- the tenants voted to turn off most lights to reduce electric bill.  If for some reason the tenants are not able to vote to reduce expenditures in common areas, such as a certain high end condo complex in Taoyuan, beware of residents who will talk your ears off about having to "feed so many lazy staff" at the front desk to keep up appearances.

In China when the builder managed period ends, the results can be even more scary.  My ex-fianc?'s father managed a Taiwanese construction company that was building condos in Tianjin (China) in 2000's.  The new condo complex there tend to be large with its own small grocer and, if facing major street, have retail on 1F.  While the condo complex is under builder management the shops are open with various colorful merchandize, the broad walkway in front of the buildings are clean, the elevators at pedestrian bridges working, and everything looks nice and new.  However when maintenance is turned over to residents, slowly the retail shops begin to shutter or replaced with shoe repair shop ran by grumpy uncle who prolly inhaled too much shoe glue, the elevator at pedestrian bridge is chained up, trash begins to accumulate, and if you bought one of the condos you realize you can hear everything your neighbor is saying due to poor sound proofing.
 
eyephone said:
They cant pay the the loan, so they are offering homes as payment?  :D
** unbuilt homes...

Who wants to buy unbuilt homes? Buy it and find another contractor to take over?
 
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