Financial Freedom: My Golden Finger Has a Billion Points

Chapter 90 Land Negotiation
In the evening, he brought a professional lawyer to the hotel's private room to negotiate.

There are seven or eight people in the private room, and there are only two of them, which is a bit weak.

After exchanging pleasantries, they drank tea and started to get into the topic. They didn't talk well, and the meal didn't make much sense.

"Mr. Lu, we at Vanke want to buy the land in your hands. Please give us a price."

"Now that you have found me, tell me how much you want to buy this land for."

"Mr. Lu is really cool. We have investigated that you spent 2000 million to buy the right to use this land. After negotiation, our company is willing to pay [-] million to buy the land from you."

Lu Xiaobu pretended to stand up and leave.

"Mr. Lu, don't worry, things can still be discussed."

Lu Xiaobu sat down again, then pretended to be angry and said:

"Since your company wants this piece of land in my hand, then show sincerity and avoid such tricks to deceive children. You have also evaluated the value of this piece of land. The new hospital area and the city administrative center will If you settle here, and once the building is completed, with the gimmick of housing in the school district, you won’t have to worry about selling the house, what do you think?”

"Mr. Lu, how much do you want?"

"Four hundred million!"

They all looked surprised.

"Mr. Lu, your price is too high."

"You go back and discuss this price. There will be a real estate company to negotiate with me later. You can call me after you think about it."

"Mr. Lu, please wait a moment. I will report this matter to the chairman."

"Please!"

Watching them go out to the private room, Lu Xiaobu and the lawyer looked at each other and smiled.

Lu Xiaobu's original price was [-] million, but now he has raised the price to [-] million, which leaves room for price reduction.

Even if the real estate developer buys his land for [-] million, he will not lose money.

There are three indicators of developer's profit margin.

Sales profit margin, calculated as profit divided by sales.

Cost margin, profit divided by costs.Capital profit margin, profit divided by the developer’s own capital.

The minimum capital requirement is limited by the country, not less than 20% of the total investment of the project.

In other words, developers can start projects with a total investment of 2 billion if they have 10 million yuan.

Other money comes from bank borrowings, equity investments, etc.

Capital margin is the best reflection of how much money developers make.

Real estate developers need to make large budgets when conducting commercial development. These budgets include nearly a hundred items including start-up expenses, land transfer fees, construction costs, sales and publicity expenses, tax burdens, etc., and are calculated and calculated one by one, and finally calculated to handover. Only the risk funds reserved at this stage can end the operation of a real estate project.

Therefore, judging from the above situation, it is really difficult to calculate how much a real estate earns.

However, ensuring a profit of 5% to 10% per square meter is a basic requirement for a real estate project, and some projects even achieve a profit of 10% to 20% or more.

This depends on various factors such as the overall situation of the local city, the developer's loan type, local tax policies, construction unit cost control capabilities, the level of the decoration team, etc. It also depends on factors such as whether the property management is managed by the developer or is organized by the owner.

After a while, these guys came in again.

"Mr. Lu, through negotiations between the chairman and all shareholders, we are willing to pay 3.5 million to buy the land in your hands."

"make a deal."

The people on the other side were confused. They originally thought he would bargain, but in the end they readily agreed. They would have given [-] million to give it a try.

"Don't take any chances. The reason why I readily agreed is because I'm too lazy to waste time on 2000 to [-] million."

"Okay, let's start signing the transfer agreement now."

The next thing is left to the lawyers. These agreements and legal documents are too complicated for Lu Xiaobu. As I said, professional matters should be left to professionals.Although I don’t have the skills, I can pay people who have the skills to do things for me.

Does the 3.5 million yuan used to buy the land belong to him? Of course not, so how much can Lu Xiaobu get in the end?

Let's take an example to make it clear.

There once was a boss who bought a piece of land for 1000 million. The value of the land suddenly appreciated due to planning. Now the boss wants to sell the land. How much does he want to sell it?

1.7 billion!

If this boss makes 1.6 million without considering taxes, then how much money can the boss take home after paying taxes on the 1.6 million in full?

Only 4000 million.

why?Because he has to pay VAT, so how much VAT is it?Nine percent, 1.6 million times 9%, he has to pay 1440 million.

After paying the value-added tax, you will have to pay a 1440% urban maintenance and construction tax of 7 million for 100.8 million.

Then you have to pay a 1440% education tax based on the value-added tax of 3 million, with an additional 43.2.

There is also a 1440% education surcharge of 2 yuan based on the value-added tax of 28.8 million yuan.

Then you have to pay a small tax called stamp duty. 1.7 million multiplied by 8.5 is the stamp tax of [-].

These are all small taxes. Now the first big tax comes out. What is this big tax called?
This big tax is called land value-added tax, and its top tax rate is 60%.

As above, his value-added amount is 1.6 million, and after deducting the additional small taxes of 181 million, he has to multiply the value-added amount of 5000 million by 60%, subtract 1000 million times 35%, and this is the calculation process.

So how much will he have to pay for the land tax increase?

9141 million!
After all this money is paid, what's left is the company's profit.

According to book calculations, this company still has a profit of 6677 million.

At this time, he has to pay corporate income tax. The corporate income tax rate is 25%. How much corporate income does he have to pay? 1669 million.

After he paid the corporate income tax of 1669 million yuan, what was left was the company's net profit, which was 5000 million yuan.

The boss wants to take home 5000 million and pay a 20% personal income tax.

So I finally got about 4000 million.

This is tax.

Now Lu Xiaobu's land has been sold for 3.5 million yuan.

So how much did you get in the end? You can help calculate it.

Of course, Lu Xiaobu gave a tax planning plan with the guidance of professionals.

Let Lu Xiaobu first set up a one-person limited company and then put his own land into it.

According to regulations, no deed tax is levied when an individual puts assets into a one-person limited company. Then the real estate company increases the capital of Lao Lu's company, and Lao Lu withdraws the shares. The shareholders will have many tax benefits when they withdraw their capital, so the land value-added tax can be directly reduced a lot. .

Of course this is a legal tax avoidance.

Many real estate companies are now playing this trick.

So when Lu Xiaobu did this, Vanke was not surprised.

Lu Xiaobu almost fell asleep waiting, took out his mobile phone and played a game.

After the lawyer and the other party finally negotiated, the next step was to sign and seal the document.

After the matter is settled, you can have a good drink.

He can finally get 2.8 million yuan for this land investment. After deducting the principal of 2000 million yuan, the net profit is 2.6 million yuan.

(End of this chapter)