On December 9th, the news of “Parents Go on Vacation, Come Back with a 10-Year Mortgage” hit the hot search list, sparking widespread discussions. In many parts of mainland China, the existence of “real estate purchase tours” targeting the elderly has been a long-standing issue, luring them to buy properties in other places under the guise of free vacations.
Recently, many netizens posted on social media, revealing stories of their parents who lived frugally all their lives going on vacation only to return with a burden of mortgage. What’s worse is that some parents not only kept this a secret from their families but also spoke in favor of the salespeople, leaving their children distressed and worried.
An example reported by the Beijing Youth Daily highlighted the case of Liu Liang (pseudonym) from Hubei. He shared how his mother in her 60s, went on a vacation and ended up buying a seaside property, which they couldn’t back out of. The whole family was in distress over this situation.
Liu Liang’s time and energy have been consumed by dealing with the property his mother bought. This all started when she unexpectedly started using various drinks stored at home as collateral for someone else, unraveling the hidden purchase of the property.
He discovered through online research that many elderly people spent a few hundred yuan on a tour and ended up buying seaside properties in other locations. The search results often led to terms like “scam,” making Liu Liang realize the complexity of the situation.
The sales tactics used to convince the elderly to buy properties are numerous and misleading. They exploit vulnerabilities by suggesting that beachfront properties are ideal for retirement, finding companions, leaving a property for their children, or even renting out the property later on if they don’t want to live there.
In order to facilitate the purchase, the salespeople utilized various tactics, such as having Liu Liang’s mother recruit people to earn pocket money and offset the mortgage, resembling a pyramid scheme.
Under the influence of the salespeople, Liu Liang’s mother ended up taking out a 10-year mortgage for the property, paying the initial installment of thirty thousand yuan in early September. According to the sales pitch, the company would deduct two thousand yuan per month and continue to do so for two years. Moreover, if his mother brought in new buyers after two years, which could generate an additional 4.8 million yuan in revenue, the company would continue to deduct the mortgage amount.
To mitigate further losses, Liu Liang has urgently canceled the bank loan his mother applied for the property. However, they couldn’t retrieve the thirty-thousand-yuan installment and the value of the seaside property was nowhere near what was promised.
Liu Liang investigated the real estate prices in the area where his mother purchased the property and found that they were around a thousand yuan per square meter, significantly lower than what his mother paid. The actual transaction volume was low, indicating that the house wouldn’t be easy to sell.
A netizen from Ningbo, Zhejiang, shared a similar experience from over a decade ago when their parents were deceived into purchasing a property during a tour, only to find out later that its resale value was significantly lower.
Liu Liang is not alone in his distress. Another netizen, Lele from Fujian, recounted how her mother also bought a house in another city after joining a tour to view properties. It was only after examining her mother’s phone bill that the family learned about the purchase, which left them in a state of unrest.
Instances like these have been exposed by the media multiple times. Retired Zhang from Xiaoshan, Hangzhou, was persuaded to purchase a seaside property in another city after attending a gathering which turned out to be a real estate promotion event.
The Director of the Beijing Jinsu Law Firm, Wang Yuchen, stated that these practices have been ongoing for a long time, with even his own family nearly falling victim to purchasing a so-called seaside property in Hebei. He emphasized the importance of verifying all the details before committing to any real estate transaction.
Despite the deceptive practices employed by the real estate salespeople, these “real estate purchase tours” targeting the elderly have not been effectively regulated by the authorities. This lack of oversight raises concerns about the exploitation of vulnerable groups for the benefit of the sellers, without proper legal repercussions.
In conclusion, despite the involvement of legal contracts in these transactions, the ethical and legal implications of these practices raise questions about the responsibility of the regulatory authorities in safeguarding the interests of the public. Efforts should be made to increase awareness and provide better protection for individuals, especially the elderly, against such manipulative schemes.