In recent years, the downturn in the property market and the difficulty in selling new homes have further exacerbated the concerns of old home owners, causing many old owners to sell their old houses at low prices.
The main reasons that lead to the rush of old house owners to cash out:
Reason 1: The old house is too dangerous
Over time, the walls and foundations of old houses may have structural problems due to long-term use, such as wall cracks and water leakage, and may even have tilted walls, which in turn affect the internal structure and electrical system of the house. Continuing to live in it will pose a safety risk.
Moreover, the risk of circuits, short circuits and even fire caused by the aging of old houses will be further increased, coupled with the small electricity demand of the original design of old houses, which may not be able to meet the high power demand of modern homes, and it is easy to lead to circuit overload.
In addition, the water pipes of old houses may be rusted or corroded, resulting in poor water quality, water pressure drops, and even water pipe ruptures, which is also the most worrying problem for many old owners.
Reason 2: The issuance of new policies.
In order to stimulate consumption, the central bank lowered the interest rate on the first home loan, and implemented two policies of recognising the house but not recognising the loan.
Of course, the reason why such a choice was made is not only because of the good drive, but more importantly, for the old house, as early as 2021, ** made it clear that it would not promote the demolition and reconstruction of the old community on a large scale, which shattered the dreams of many owners of old houses who originally relied on demolition to get rich;
But after all, the policy will also carry out a series of changes according to the times, especially the old houses that are more than 20 years old, don't buy, **set the tone, these three types of people will directly benefit:
01 Real estate status.
After entering 2023, China's real estate market has not risen as rapidly as everyone expected, but has continued to decline.
The data shows that from January to November this year, there was a trend of decline in the area of new construction and completion, and there are many factors that led to this decline
First of all, the slowdown in the urbanization rate has led to a decline in demand for housing purchases, and the sales volume and sales area of houses have also been greatly reduced, which has further affected the return of funds from real estate companies, and then affected the use of new funds by real estate companies to acquire land to build houses.
Second, the slowdown in population growth and the continued decline in the number of births mean that there is a relative decrease in demand for new home purchases.
Finally, the slowdown in income growth has led to a decline in the ability to buy a home, which further affects people's willingness to buy a home.
Under the combined effect of these factors, the area of new construction and the area of completions in the real estate market have been significantly affected, and with the decline in demand for home purchases, the area and sales of houses have also declined since 2023.
Based on the downward trend of the current market, whether you are buying or selling a house, you need to pay close attention to the dynamics of the market, and it is recommended to wait for the market to be more stable before considering buying a house, so as to reduce the risk of depreciation.
02 Old houses that are more than twenty or thirty years old have ushered in the opportunity to be demolished.
In recent years, the company has increased its investment and support for urban renovation and the improvement of old communities, and some old houses that are more than twenty or thirty years old may also face demolition or renovation if they meet the conditions, so as to improve the living experience of residents and enhance everyone's living comfort.
1.Renovation of old houses.
The so-called renovation is to repair and renovate the old house on the basis of not demolishing and rebuilding, such as replacing the water circuit pipes, renovating the ground and walls, installing elevators, etc., so as to improve the living conditions of residents, increase comfort and safety, extend the service life, and improve the value of real estate.
2.Demolition and reconstruction.
Although the renovation policy has replaced the shantytown renovation, those that are old, unsafe or do not meet the plan will still face demolition.
Generally, this type of demolition work is mainly determined by the developer, the owner or the owner, and needs to comply with relevant laws and regulations;
Demolition may involve compensation, resettlement, environmental protection and other issues, requiring careful planning and legal operation, after the demolition, the site may be used for different purposes such as new housing, commercial land, public facilities, etc.
03 Three categories of people will benefit.
1.Old house owners and residents.
Once an old house that is more than twenty or thirty years old is demolished, the first to profit will be the owner and the residents. They will receive compensation for demolition based on factors such as the size of the house, market value, etc.
At the same time, ** or the developer will also provide resettlement housing or related residential resettlement plans for them according to local policies to ensure the comfortable life of the relocated residents in their new homes.
Moreover, for residents, they can not only get corresponding compensation through demolition, but also enjoy a better living environment and improve their quality of life.
2 .Developers or investors.
Once a developer demolishes an old house and builds a new project, the market value of the new house is usually higher than that of the old house, bringing an increase in the value of the land.
In addition, the demolished site will attract more commercial investment, and developers can also develop commercial land in the new area, including adding shopping malls, office buildings and other projects, so as to bring commercial benefits.
3.Local**.
Through demolition, land resources can be better planned for new urban construction projects and improve the development efficiency of the city.
The new projects will also bring tax revenue to local governments and provide more opportunities for local economic activities, attracting population inflows, stimulating consumption and driving economic growth.
In short, whether it is demolition or renovation of old houses, for some people, will benefit.
However, it should be noted that while carrying out these two projects, local governments also need to comply with relevant laws and regulations to ensure the legitimacy and fairness of the process, ensure the protection of the legitimate rights and interests of residents, and avoid social instability.