news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Source: Times Finance Author: Comprehensive

Source: Tuchong

Recently, "zero down payment" housing purchases have frequently appeared in Guangzhou, Jiangsu, Henan and other places. On social platforms such as Xiaohongshu, many real estate agents have posted similar posts such as "zero down payment to buy the first house in life" in the tone of home buyers to attract traffic, triggering heated discussions in the comment area.

According to China Securities Journal, the main operating modes of this round of "zero down payment" home purchases are: "high appraisal and high loan", that is, the developer or real estate agent inflates the property price, making the purchase contract price higher than the actual transaction price, and obtains additional loans from the bank to pay the down payment; cooperate with financial institutions to apply for credit loans as down payments on behalf of customers, so as to realize "buying a house without paying a penny yourself."

In fact, there are multiple risks behind "zero down payment" home purchases. For homebuyers who have not yet been approved for loans, they may face the risk of not being approved for loans; for those who have already committed illegal loan violations, they may face the risk of having their loan contracts terminated in advance and being required to repay the full amount in advance.

Nanning, Guangxi and Zhengzhou, Henan and other places have also issued documents clearly warning of the risks of "zero down payment".

The Nanning Housing and Urban-Rural Development Bureau pointed out that "zero down payment" home purchases may not only increase the repayment pressure of home buyers, but also hide financial and legal risks. Due to the lack of a down payment buffer, this home purchase model makes the lender directly bear the debt of the entire house price. Once the market fluctuates or the personal economic situation changes, it will face a higher risk of default.

Subsequently, Zhengzhou City further elaborated in detail the five major risk warnings that "zero down payment" home purchases may bring through its official platform "Zhengzhou Release", including but not limited to: 1. Home buyers may face greater financial pressure due to lack of down payment, thereby increasing the possibility of loan default; 2. Banks and other financial institutions face higher bad debt risks; 3. The real estate market may become unstable due to such high leverage operations; 4. Home buyers may be involved in complex legal disputes, especially when developers fail to deliver the houses on time or there are problems with the quality of the houses; 5. "Zero down payment" may become a means for some bad developers to attract buyers, covering up the financial or legal problems of the project itself.

(Zhao Peng of Times Finance compiled from China Securities Journal, China Business Network, Cailianshe, Jiemian, China News Service, etc.)