Warning on Banker Contractors
In December, customer purchases residential projects by getting loan from banks or the bonds equally. The rate was 38 percent. Considering the sale in July 2015, this rate was 55 percent so there is a positive decrease. However, according to the experts’ beliefs indented sales ratio is an alarming level. Attention to the banker contractors. The details are here. According to the December 2015 data, when branded residential sales by direct payment, contractor credit or loan from banks were examined, it appeared that people who pay in cash are 24 percent, the utilization of bank credits are 38 percent, intended credit usage is 38 percent. Last year, in May, the ratio of intended credit was its highest level and very close to the bank loans. There is a decrease but it is still a warning sign for real estate market.
Attention to the banker contractors. According to the Sales Cube Chairman Kürşat Tuncel, the banker contractors have a high probability of financial distress in the near future. Contractor are working without capital and when it is combined with the increase the cost of construction market, it will stressed them easily and would lead them to the bankruptcy. If home buyers don’t pay regularly, flow of cash will be impaired and then the companies can be under some trouble. Construction companies cannot meet the demand.
Attention to the banker contractors. Tuncel stated that contractors don’t have low-cost and long-term funding source like banks so when this situation is coupled with the credit risk of the condition, you may easily turn into collapse. They don’t have the necessary information about financial risks and they always try to sell houses in an easy way and do whatever needs without thinking and planning. This can bring the risk of collecting the payments.