First, why should developers do fine decoration?
1, market demand
The so-called existence is reasonable, and the advent of hardcover houses is naturally caused by market demand. In the current pace of life and work, a considerable number of property buyers have no time and energy to do house decoration. Especially young people who are newly rooted in fast-paced first-tier cities. Therefore, in order to seize this part of the market, developers naturally chose to do some fine decoration projects. Mature developers will choose areas suitable for such groups to buy, as well as price-bearing areas and apartment areas to do fine decoration projects.
Fine decoration room
2. Interest-driven
Developers are not charitable organizations, but also need the support of interests. Without the drive of profit, there would be no hardcover room today.
(1) Centralized procurement and cost control. Reducing circulation channels and scientific management by purchasing hardcover houses will reduce the decoration cost to a certain extent, and developers will share the premium with customers, so fine decoration can bring some profits to developers.
(2) Optimize cash flow. Hardcover repair will improve the financial cash flow of developers to a certain extent, reduce capital occupation and capital cost, and the reduction of capital occupation will help improve the return on capital of development enterprises.
3. Tax optimization
(1) At present, the reform and early development costs of large projects will increase, and the input cost can be kept greater than the output for a long time. After optimization, it is of great help to the cash flow in the early stage of the project.
(2) According to the Detailed Rules for the Implementation of the Provisional Regulations on Land Value-added Tax in People's Republic of China (PRC), taxpayers engaged in real estate development can deduct 20% of the land cost and development cost. (If fine decoration is done, the land value-added tax can increase the decoration cost by 20% after deducting the cost. )
4. Ensure the brand value of the development enterprise itself.
This is based on the sacrifice of property buyers' right to choose independently. Some brand development enterprises are keen to provide finely decorated houses in order to prevent owners from destroying the unity and aesthetics of products and ensure their own brand value.
Second, why don't all developers dare to do finely decorated houses?
1, developers generally do fine decoration of houses are centralized procurement. Because decoration materials and quality are directly linked, it is also very important to purchase manufacturers. Long-term cooperation units, quality will be more assured.
2. After the finely decorated house is delivered, there will be some minor problems, and the cost of long-term warranty is relatively high.
3. Fine decoration is also a long-term exploration process. What needs to be improved and done reasonably cannot be done in a short time. It needs long-term running-in and long-term practice.
To sum up, there are many benefits for developers to do fine decoration, but it is also a very big test for the strength of developers. In particular, low-density products have different huxing and patterns and different conditions, which should be treated and designed differently. So not all developers have the conditions to do fine decoration.
(The above answers were published on 20 17-06- 19. Please refer to the actual situation for the current purchase policy. )
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