"Old Zhang, our country's property prices had been rising rapidly these few years."
Zhang Ruiqiang glanced at Feng Yu. "What's wrong? Are you saying that you had made a lot of money these two years?"
Tai Hua Land was a real estate company under Taihua Holdings. It had integrated Tai Hua Supermarket, Bing City Pharmaceutical, and other real estate companies owned by Feng Yu in the past. Now, it was one of the biggest real estate companies in China.
Everyone said that the houses in Tai Hua Land were of good quality, and the procedures were complete. The property management was good, and the prices were not too expensive.
Feng Yu shook his head. "Yesterday, I went to Shanghai's stock exchange and noticed that the stock market was rising rapidly. But the property prices were rising even faster. Not only Shanghai, but Beijing, Guangzhou, Hangzhou, Shenzhen, etc. were also rising rapidly. Don't you think this will cause those who need to buy houses to be unable to afford it? "
With the rising property prices, there were more people speculating. All kinds of Brother Fang and Sister Fang had several houses under their names. Some even had dozens of houses under their names.
These houses were not their necessities. They treated these houses as investments and used them to collect rent.
If it was those retail stores or office buildings, it was normal to collect rent from them. Most companies were used to renting offices, and it was cheaper than buying houses.
However, a lot of people still wanted to buy a house instead of renting it. Buying a house was considered a home. This was Hua Xia's mindset.
Now, many young men who wanted to get married would ask if you have a house first. If you don't have a house, how can you start a family? Who would want to rent a house with you?
The rapid rise in property prices was also related to these speculators. Of course, Feng Yu felt that the higher-ups did not regulate the property market, and it was because of the lack of supervision.
Let's not talk about these speculators. Those real estate developers were also up to no good.
For example, this person bought a fake famous painting and sent it to the auction house. In the name, it was sold for 50 million RMB. Of course, he did not need to pay that much to the auction house. He only needed a few hundred thousand RMB.
This time, with the auction house's appraisal report, this fake painting became the "real" painting.
If he took the painting to the bank and got a 60% loan, he could get at least 30 million RMB!
Feng Yu will use the 30 million to auction the land and use a shell company to buy the land. After that, he will prepare a development plan and get the relevant government departments to approve it.
After getting the approval, he didn't know how to develop it himself. He couldn't even find a decent engineering team, and he didn't have the funds to develop it either.
Now, they were not allowed to use the project land as a mortgage to develop this real estate.
Don't worry, sell it. Some of them were rich developers. They did not have any connections and could not get the approval.
Just like that, the first person used a few hundred thousand to make a business worth tens of millions.
For the sake of profit, he had to increase the price. The land was auctioned, and the price was relatively high. Going through the approval process and forming a grassroots team would cost money, wouldn't it? Then, he had to make plans, run for approvals, go through the procedures, and so on. He needed money too, right? In addition to his own profits, as well as the favors he had received and the bank's interest, the price of this piece of land had increased a lot.
The developers who obtained the land did not have enough funds, so they used other projects as collateral for loans. Moreover, their development cycle usually exceeded a year, and some even took three to five years.
It wasn't that they didn't have the funds to develop it, but they were waiting on purpose. Within the time allowed by the procedures, they dragged the funds. This was because the funds could be used for other purposes, and the construction cost did not increase by a lot. But the price of the land increased rapidly.
Three years ago, the same quality of the land was selling for 5,000 RMB per square meter. But three years later, the land was selling for 8,000 to 9,000 RMB per square meter. These three years, Feng Yu only needed to use a small portion of the funds to look after the land.
Of course, his land was still there, and if he could not convert it into cash quickly, his funds will be under pressure. But it's alright. He does not lack money. If he lacks money, he can get a loan.
He cannot get a loan to develop Land A, but he can get a loan from Land A to develop Land B.
The developers need to make money, the construction team needs to make money, and the sales team needs to make money. Everyone needs to make money, but whose money should be earned? The people who bought the property.
In Feng Yu's previous life, when Hua Xia was regulating the property prices, the property prices were already very high. In this life, because of Feng Yu's suggestions, those speculators did not succeed again. But there were too many ways to solve the problem, and Feng Yu could not think of all of them.
"Feng Yu, do you think I have the right to interfere with this house? Only Zhu Jianbu can manage it, and I don't have the ability to do so. "
Although Zhang Ruiqiang is in the limelight now, and many people say that he will be involved in the real estate market in a few years' time, but that's in the future. Now, Zhang Ruiqiang does not have the time to manage these matters.
"Old Zhang, you will be moving up in the future anyway. Let me give you some suggestions first, and you will not have to clean up the mess in the future. Don't bother too much, and just stop those developers who sell their projects after getting approval. Also, increase the loan for second apartments and third apartments. Don't give them the chance to repay their loans with rent. "
"Next, we need to investigate the people who own multiple apartments. How did they get their apartments? Also, why are they developing new properties when the vacancy rate is so high? Don't tell me the local governments have other ways to generate income other than selling their land? Don't they know how to develop their economy and make money? Don't they know how to support small and medium-sized entrepreneurs? "
"Think about Hainan Province. The property bubble there is still fresh in our minds. Look at the real estate bubbles in the US, Japan, Thailand, and other Southeast Asian countries. Once those bubbles burst, what will happen to the economy? "
"Iron-fist Zhu had asked me if real estate can be the backbone of the country's economy, and I shook my head. In the short term, real estate can stimulate many industries and increase the economy. But if the economy continues to develop like this, it will create a false boom, and the economy will collapse! "
Feng Yu remembered in his previous life, there is a city in the northwest region that produces cashmere sweaters. After the country discovered a mine, the government decided to develop it. After that, a lot of money will be used to speculate in real estate.
Before Feng Yu's rebirth, there are still many ghost buildings in that area. Every night, only one or two households in a building will have their lights switched on. Some of the households do not even have any lights on!
What's the use of those remaining buildings? Even if we mortgage them to the banks, the banks will not be able to sell them. The losses of the banks are also the country's losses.
Zhang Ruiqiang's expression turns serious. "Is it really as serious as you say?"
"If we don't do something about it, it might be even more serious!" Feng Yu is not exaggerating.
Zhang Ruiqiang sighed. He might have crossed the line this time. But now that he knew, if he didn't do something about it, he wouldn't be able to get over it!
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