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purchasing power relatively declines

网络释义

  购买力相对下降

It refers to the changes of economic situation (such as market demand, purchasing power, interest rates, tax rates, exchange rates, etc.) lead to the economic loss of the exploiter. As the period from feasibility study to appearing on market, the market may changes, consumers` preferences to structure and size of apartment will change. The original segments such properties is in short supply, while it may become huge backlog soon, it is inevitable that investment income far less than expected. During the inflation period, the currency notes depreciates, the full price rise, although the industry property has a capacity to resist inflation, the prices will also rise. The amount of monetary holding by people is certain, purchasing power relatively declines, may be unable to pay for the growing appreciation of the property, leading to the risk from the project difficult to sell. Generally speaking, industrial property demands more funds, it's very difficult to management entirely relying on its own cash, usually require outside funding, such as bank loans and fore sale. The exploiters take their own property as collateral for the investment loan of the project, they must bear the risk that the property occupied by others if the loan can't be paid accordance to the agreement of mortgage loan. When the exploiters take pre-sale housing to collect funds, if the property is not completed accordance the date, they must pay huge compensation for the risk.

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purchasing power relatively declines

购买力相对下降

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