Chapter 22 Public Rental Housing

House seemingly endless rain!

Originally, the economy was not good, and real estate companies were not very willing to acquire land.

At this time, due to the need to prevent and control black swan events, local expenditures have become even more.

Under such circumstances, [Chaoqun Group], the God of Wealth, suddenly announced that it would buy land, instantly detonating the entire public opinion.

for the rest of the day.

[Chaoqun Group] Many executives have been bombarded with calls from senior officials from various provinces and cities across the country.

Some get straight to the point, and some beat around the bush.

But everyone expresses the same meaning - buy land from me! I have land!

The entire stock market rose in response.

Because as long as [Chaoqun Group] is willing to buy land with real money, and the local area has money, the entire economic chain will turn around.

The current economic pressure faced by the country can also be greatly alleviated.

Don't look at [Chaoqun Group]'s huge profits overseas. If it is reflected in GDP, it is a year-on-year economic growth.

But in fact, wealth is highly concentrated in the hands of top trust companies like [Chaoqun Group] - yes, even if [Chaoqun Group] never admits it, it is recognized domestically and internationally that [Chaoqun Group] is regarded as a chaebol , or rather trust companies - other people in the country only get good-looking economic data, but the real economic situation can only be said to be like a person knowing whether his drinking water is warm or not.

But [Chaoqun Group] said it would use the money to buy land, which is different.

Why was it always said that real estate companies are pillar companies before?

Because there are really too many industries involved in the real estate chain.

It really affects the whole body.

When real estate develops, other industries will also develop, and the overall economic vitality will also improve.

certainly.

In real estate, housing prices continue to rise, which maintains high turnover costs for real estate companies.

But as housing prices rise, the vitality of the entire society will decrease. Ordinary people have struggled for decades and cannot even afford the down payment for a house, so the pressure will only increase.

Previously, the plummeting fertility rate was one of the manifestations.

Of course, the plummeting fertility rate is not solely the result of skyrocketing housing prices.

[Chaoqun Group] has established a [Vision Fund] and invested a lot of money. It provides newlyweds with a considerable amount of interest-free long-term loan funds to pay for the down payment of a house.

It is by relying on this [Vision Fund] that [Chaoqun Group] has held down housing prices, helped many real estate companies destock, and objectively slowed the impact of the real estate recession on the economy.

Although

This cannot change the result that real estate companies do not acquire much land at this stage.

[Chaoqun Group], or in other words, Wu Siyuan, is willing to take money, or use a lot of funds to purchase local land. It is not an exaggeration to use the word "helping in times of need" to describe it.

After all, many places are waiting for transfer payments.

If you can sell a few places and withdraw some funds, it will also have a great relief effect on your own economic situation.

Moreover, after purchasing land, it must be developed, and development requires capital investment. Capital investment requires manpower, which will stimulate economic development. It can promote local development, which is what the local government wants to see.

This is also the reason why they raced against time to call after hearing [Chaoqun Group]’s announcement, for fear that if they were delayed by one second, the money would be divided up by other cities.

In addition to local positive calls.

The leaders above were quite surprised after hearing the decision of [Chaoqun Group].

Now this situation has become obvious. Except for some areas, the real estate business in other places is like backwater. According to the current way of playing the real estate industry, not to mention 100% loss, at least 90% loss.

If [Chaoqun Group] enters the real estate industry like this, it will lose at least several trillion yuan of its five trillion yuan.

Buying land is a big expense.

Construction is another big expense.

If the house is built but cannot be sold, or only a small part is sold, then the rest will be yours.

Assets that cannot be liquidated are losses!

Although the attitude towards [Chaoqun Group] was very immodest, when faced with this situation, they still called to see [Chaoqun Group], or what Wu Siyuan really thought.

As a result, Wu Siyuan told them directly that the money was intended to be used for losses. After the house was built, Wu Siyuan did not intend to sell it - the leek roots were almost uprooted, and it would be difficult to sell it. out.

Wu Siyuan's plan is to - rent!

Yes.

[Chaoqun Group] buys land across the country.

A small part of the purchased land will be used to build commercial housing, commercial plazas, or other commercial buildings.

Most of the land is used to build public rental housing, which is relatively cheap but has better environment and other aspects than public rental housing in various urban villages and basements.

This idea actually coincides with some people.

Anyone with a discerning eye has seen that land finance is unsustainable.

But land finance is very important.

Public opinion was released before to test the real estate tax.

But the resistance was too great.

At the same time, they are also worried that the introduction of real estate tax will lead to a direct collapse of housing prices that have been trading sideways.

That is what will cause a systemic crisis.

Therefore, the upper management has another idea. First, it will gradually strip away the financial attributes of the house and form a new understanding in the minds of the people. In the future, those who can buy a house will buy a house, and those who do not want to buy a house will rent a house.

Use the rental income from public housing to offset the tax on land sales.

Based on the marketization of commercial housing, through the marketization of commercial housing rents and public rental housing rents, the public rental housing economy will win.

Of course, the prerequisite for doing this is that there must be enough public rental housing.

Local governments must first invest in building enough public rental housing before they can start public rental housing.

This year, 2022, the country plans to raise 2.4 million rental-guaranteed housing units.

It seems like a lot, but the number of rent-guaranteed houses is far from enough.

And [Chaoqun Group] said it would buy land to build public rental housing, which would benefit the country with two birds with one stone.

First, buying land effectively supplements local income.

The second is that the public rental housing to be built by [Chaoqun Group] will not have a big impact on commercial housing as long as it does not have financial attributes or other artificial attributes, such as household registration, education, and medical care.

The first target of public rental housing is the rentier class, which is a large number in the country.

There are quite a few tenants who rent their wives.

But this number is nothing compared to the number of people in China who are in need of rental housing.

What's more important is that many tenants rent to the outside world as natural persons.

It is difficult for the state to collect taxes on the benefits they obtain from renting a house.

And if one or more large-scale housing rental groups rent and collect rents, formalized operations will be very convenient for national management and tax collection.