Real estate developers to expose the industry unspoken rules

5 years time 2 million fry into 200 million this reporter Wang Junxiu intern Tan Wei 5 years ago, spent about 2 million yuan to buy land, 5 years later, built up the sale of commercial housing, won a net profit of 200 million yuan.　　A hundredfold's profit comes from soaring house prices, and behind it is a house slave. Liu (a pseudonym), a real estate businessman from a southern city, has been involved in the real estate industry for more than 20 years.　　It is he, the developers of the project, recently to the Chinese youth newspaper reporter told the near empty gloves White Wolf's profiteering story, as well as the real estate industry unknown unspoken rules. He explained his reasons for doing so said: "' come out and always have to return," We developers to use the opportunity of history to make a lot of money, is the transformation for the people to do something.　　"Real estate profiteering from where to China Youth newspaper: early this year, Ren Zhiqiang publicly declared real estate development take the cost of high, capital turnover time is long, not profiteering industry, you think real estate is not profiteering industry?"　　Liu: Real estate is profiteering industry, this is no doubt. Ren Zhiqiang just told a part of the truth and did not speak comprehensively. Construction costs are made up of three parts: part is the cost of land, so Ren Zhiqiang said that now the land price is very high, the house to sell very expensive; the second part is labor costs, mainly refers to workers wages, is the elastic part, and a part is reinforced concrete, this part is with the market, with the adjustment of the market environment adjusted.　　For example, last month sold 1000 yuan a ton of steel, this month to sell 1100 yuan, but this cost is controllable. There is a survey, developers buy land and build house of the physical cost of about 1/3 of the total cost, including land, building materials, labor costs. Another 1/3 is the cost of the channel, which refers to reasonable expenses such as tax and declaration fees, and also includes hidden costs such as bribery funds. The last 1/3 is the profit of the developer.　　In fact, profits are far more than that if they work well.　　China Youth Daily: How does it work?　　Liu: "Make gold with Earth". 2004 I worked with a company to register a new real estate company to develop a real estate project. This land is the government demolition and resettlement sites, according to government documents, according to the construction area of the market price of 10%. Then we took a total of about 2 million yuan. The land of this development project is mainly composed of the land of village A and village B.　　B Village Land has been completed in the first phase of the project, a total of 21 farmers House, a total of 9500 square meters of building area, the actual volume rate of 3.3, and the completion of all projects after the actual volume rate is 4.0.　　China Youth Daily: You use unauthorized increase in the volume rate to increase profits, the relevant departments will not be prosecuted? Liu: not usually. Sometimes the use of planning loopholes, such as the project of the Land of village A, a total of 7539.5 square meters of land only 2709 square meters is a development site. The remaining 4830.5 square meters of land area has been built by the government for farmers housing, the actual building area is only about 4000 square meters, the volume rate in0.82 or so.　　In fact, the original planning volume rate is 1.6, so developers have more than 0.78 of the volume rate of development space.　　China Youth Daily: In addition to increasing the volume rate, what channels to increase profitability?　　Liu: Of course. I'll tell you more about two developers. For example, our real estate project total construction area of more than 40,000 square meters, of which, residential area of 34,000 square meters, commercial area of more than 3,000 square meters.　　The first is that the 3,000-square-meter commercial area contract does not indicate that the developer's dividend is worth at least 100 million yuan. Another is that the total construction area minus commercial area, according to the contract to return the farmers 10,000 square meters and to the farmers built 4000 square meters of housing, the developer's saleable area of 30,000 square meters. In accordance with the project is now the average price of 12000 yuan/square meters to calculate, a total can be sold nearly 400 million yuan. The cost per square metre is about 2500 yuan, so the total cost of the builder is about 100 million yuan.　　Finally minus the construction business profits and other costs about 100 million, the development of this property, developers can benefit from a total of 200 million yuan, there is a value of 100 million of the commercial area.　　From this process you can see, developers are how to 2 million yuan into 200 million yuan.　　System to the real estate business privileges China Youth Daily: Why developers have so many loopholes can be drilled? Liu: This is because of China's current real estate system vacancy. China is a public ownership country and the land is owned by the whole nation. Land is the same without economic value until it is developed.　　But once the land has been built, it has a lot to gain. Real estate development is a systematic project, in which land is paramount. There are special rules for land development in our country, and many people can not develop it even if they have land. State-owned land to develop, is responsible for the specific operation of the real estate business. Collective land to develop, but also through the real estate business.　　These regulations cause the real estate business to "professional" up, other people even if the land but also can not develop.　　China Youth Daily: Do you think China's present land transfer and development system is flawed?　　Liu: The system gives the real estate business privileges, on the other hand, the system derives private rights. We know that all policies have their own lag, but the motivation for policy is specific departments or individuals, so professional real estate developers will have the target and the goal of delivering the benefits. The absence or error of policy makes the real estate business a duck in the house.　　For example, some places to launch a "home purchase", and then canceled, the policy changes behind the real estate business figure.　　China Youth Daily: Some people say that real estate is high investment, high risk, high return. Liu: Wrong, developers to develop real estate is almost zero investment.　　In the housing pre-sale system, developers take home buyers of money to do their own development funds, property developers build house is not money, "empty gloves White Wolf." In the pre-sale of the house, developers can almost recover the full cost, and even surplus. Pull cement, buy steel, ShangAll the capital is owned by the builder. Developers and other houses sold to make huge profits before the builders to liquidate the project. This is the "Build House not Money" business model, in particular, is to take your owner's money to do my development funds, coupled with building contractors to build houses, is both a reality and a legal state. Banks will also be very supportive because the banks are also getting the most out of the profits.　　The bank's mortgage interest portion is ultimately higher than the principal, and the principal is paid after the interest is paid first.　　The relationship between the government and the developers, like the mother-in-law and son-in-law of China Youth Daily: Now the people say you have a real estate business behind the government backing, is this it? Liu: There are special workers in the operation, real estate business is a professional, must gain monopoly interests. And the gain of this kind of benefit is inseparable from the cooperation between the Government.　　I'll give you an example of my resumption more than 20 years ago, and you'll see. The land can only be levied by the government, we can not collect it ourselves, and then sell it to us after the state expropriation. The Government in accordance with the price of 16,000 yuan per mu from the farmers hand, and then the price of 200,000 yuan per Mu sold to us. We didn't talk to the villagers, and the government gave us the land. We were hiding behind the government, and there was no such thing as an executive transfer or a state requisition. At first we were engaged in real estate development, but the villagers did not know. For the villagers, the ground is not money. In this particular environment, which village can sell the land, it is very competent, because the land has been changed. 80 acres of land sold, every household has become Wan Yuan, so the villagers have previously been very happy.　　Later, the villagers know the truth before the psychological imbalance.　　China Youth Daily: The government and developers who are the winners? Liu: All winners. A real estate project, the government can make 10 million, this is state-owned assets, so the government even if a good thing, but also led to local employment, led to the development of local GDP.　　When the house is built, it may sell to 30 million, so we earn 20 million.　　China Youth Daily: This says that the government and the developers are like a cooperative relationship. Liu: The government's relationship with developers is like the mother-in-law and son-in-law. There is a saying that: The mother-in-law sees the son-in-law, the more looks more joyful. We are now a cadre of evaluation system is to see GDP, employment and investment, these are inseparable from the developers.　　The government wants real estate developers to build their houses properly and then get the benefits.　　Government policies are basically tailored for developers, such as the house is not good to sell, the introduction of home purchase policies, there will be a lot of people borrow money to buy a house.　　How to reduce the housing price China Youth Daily: What do you think is the reason for our country's current high prices? Liu: The rise of house prices is a certain degree of economic development in China. 30 years of reform and opening-up, China's economy has been greatly developed, the land will naturally add value. The government got the biggest dividend when the government ceded land.　　The real estate business is the person who does this thing, and they cooperate with the government, so the developer also benefit. But house prices have risen so high now because IThe development of real estate is the study of Hong Kong. Hong Kong was once a British colony. When the British were in Hong Kong, because they did not want to carry the baggage of history, they used land to make a fuss, and the government only developed 1% of the land because of the serious imbalance between supply and demand, which naturally raised prices.　　In this way, let the rich come to the booth.　　China Youth Daily: In this way, many Hong Kong civilians cannot afford to live in their homes. Liu: At the same time as the high house price policy, the Hong Kong government has built a large number of public rental housing for low-income groups. Now about 28% of the people in Hong Kong live in public housing. And we learn Hong Kong is crooked, we only learn high-end commercial housing this together. So we now solve the housing problem of ordinary people, but also to increase the security room, so as to meet the needs of the rich, but also let the people also have a house to live.　　China's housing policy has been vacant, many problems can not be completely market-oriented approach to solve, such as medical care, education and housing, all market-oriented, now the problem appears, only to find a lesson. China Youth Daily: Why market cannot solve housing problem?　　What are the roots?　　Liu: The root cause is many people in our country. China Youth Daily: Housing does not solve through the market?　　By administrative distribution? Liu: The ideal housing pattern is that most people live in government houses, 1% of people live in private property, and 99% of people live in government houses, both to meet the needs of the rich and to solve the housing problems of ordinary people.　　As for commercial housing and affordable housing, the proportion of low-cost housing, according to the situation in general, to live in the government's house should be the majority, housing is a minority.　　China Youth Daily: But the house as a fixed asset, there is the value of investment, there are developers say the house itself is for the rich. Liu: Yes, the house has an investment attribute. But as a national policy, China to ensure the harmonious development of society, long-term stability, the House can only be taken to live.　　Now we see a fundamental change in real estate policy, that is, to locate the house is used to live, now the central government has a very obvious intention is that the function of the house is used to live, so do not allow to fry.　　China Youth Daily: How do you think you can curb soaring prices? Liu: The reason for the high price, one is the government vacancy, in addition, our policy has loopholes can be drilled. The government should do the same with the guaranteed housing.　　But we have 17 years of affordable housing, not a year to actually implement. The government should build a large number of security houses to solve the housing problems of ordinary people. And because the protection of housing ownership is the government, so that the benefits of land appreciation after the government.　　Now the government has begun to strengthen the housing construction, if the implementation of the policy is good, it is certainly able to pull down the housing prices.　　China Youth Daily: is the developer willing to build a security room? Liu: When things are bad, some earn better than none. The first two years of real estate slump, Vanke in Guangzhou took a 400,000 square meters of land, is to help the government to work well. What concept? is millionDivision to the role of its developers down to the builder, in which to collect a fee. BEIJING, July 1 (Xinhua)