My Lord, you need to stand up!

Chapter 387 I Don't Love Making Money, I Love Making the Future
Chi Shih-ming, who was originally in charge of the on-site pre-sale work, had to pick up a megaphone to emphasize that as long as construction starts smoothly, more residential buildings will be added for construction and sale as soon as possible.

Those who did not receive an order at the scene can be given priority in the third round of sales for commercial housing.

Even this couldn't suppress the dissenting voices from these prominent local figures.

They still have a sense of entitlement, or rather, they are too proud to admit it and don't want to queue up before dawn and get all sweaty.

They felt that this was an option given to them after the city government announced the cessation of welfare housing allocation.

There shouldn't be anyone competing with them.

There are always people who are used to eating from the same pot and having food laid out in front of them, and now that they haven't gotten any, they complain that the food wasn't distributed evenly.

Architecture and planning experts are accompanying Rangwei East Station from the second-floor window to observe the bustling "opening" ceremony.

They are all very optimistic that their careers may enter a super golden period in the future.

They also actively expressed their desire to follow Wei Donglai in carrying out their work.

It's very simple: let Weidong provide them with opportunities at the "market price".

Although he didn't know how much to give, he figured he should get at least ten thousand or eight thousand for a project.

This price was simply unbelievable in retrospect.

A price of 3% to 5% of the construction cost is considered a fairly normal price for the design phase.

In contrast, those who work with state-owned real estate development companies, construction and planning units, and provide manpower receive a salary subsidy or bonus of around 40 or 50 yuan.

Getting a few tens or hundreds of dollars in drafting fees for a completed project is considered good.

There is absolutely no market-oriented integration.

Therefore, following private real estate developers, especially those who are currently leading the pack with two huge projects, already feels like they've got a lot to gain.

So, of course, I answered without hesitation: "Then the question now is, where will the funding for urban planning and construction come from?"

It was only after Wei Dong had built this small neighborhood to this point that he finally understood this principle:
For every new neighborhood developed, the government or urban development company has to spend money.

Real estate developers and construction companies only need to allocate land for construction, while the government still has to pay for all the surrounding public areas.

The roads must extend to the area around the buildings, and the government must be responsible for everything, including water, electricity, gas pipelines, sewage discharge, garbage collection, security patrols, greening and cleaning, and even public transportation.

These are all development costs associated with urban urbanization.

Therefore, the smaller the neighborhood, the more roads there are, and the more fragmented the area, the higher the cost of public planning!
This is also the biggest reason why many places later sold land to real estate developers at a high rate, and many new urban areas seemed to be built very beautifully, but in the end, they were burdened with a huge amount of local debt.

Urban development planning costs are not a one-off transaction; the real expense lies in ongoing maintenance. The more beautiful the neighborhood, the higher the cost!
Who will pay for it?
If the new neighborhood fails to generate commercial value and tax revenue, it's a losing proposition, and there are quite a few people in the compound who complain about that.

The old man finally understood: "Damn, isn't this the main expenditure of local governments from selling land?"

Right now, nobody is even mentioning land prices, and he certainly won't say a word about it.

Anyway, he had no intention of continuing in the real estate business, nor did he want to make money from it and give others a handle to use against him.

While there's plenty of vacant land around, let's build a cluster of affordable housing developments to provide a breakthrough for housing reform.
But he still knew that selling land would be inevitable later on, even if it was just selling the right to use the land for a certain number of years.

After all, proposing land sales at this time could easily trigger a landmine, causing those who are not quick to accept the idea to vehemently oppose real estate reform.

There needs to be a gradual process of change.

But the public costs of urban planning are still there; where will they come from?
Of course, this is not a problem for Wei Dong now, as long as he doesn't want to make money from real estate, the profits from real estate should be used for this part of the expenditure.

After all, the main entity for this real estate development is Beijiaochang Urban Development Company, a state-owned enterprise under the Beijiaochang Industrial Park. Although it started without a penny in its accounts and relied on Wei Dong to allocate funds to get it started, its nature cannot be touched.

Even though many real estate companies were later privately owned, Wei Dong was determined not to touch this potentially volatile shareholding in the 1980s.

Therefore, in Jiangzhou Urban Construction and Development Company, he only serves as the chairman with a one-yuan share and does not want any shares.

So he won't get a single penny from these properties.

He knew very well that he could get rich rewards in many other ways at the North Parade Ground.

Currently, the sanitary napkin factory is using the factory area and dormitory of the hemp textile factory, paying only a symbolic rent. The new sanitary napkin factory area under construction next door has not included land prices, and there is also a future corn bioengineering factory area, which is estimated to be over 100,000 square meters in size.

Not to mention that he is the person in charge of this development zone and decides how his own company should operate. Isn't that convenient enough to make money?

There will absolutely be no instances of local governments making things difficult for investors.

With this kind of situation, focusing on solid production and sales, and not taking a single penny that isn't rightfully yours, is enough to make a fortune.
It remains to be seen when this situation of someone being both referee and player will end.

Seeing the commotion below, he naturally gestured and said, "Of course, it's the sales revenue from this portion of the commercial building area."

He went down the steps on the side of the second floor and took the megaphone from Chi Shiming: "I'd like to say a few words..."

Actually, the noise quietly subsided as soon as he came downstairs.

I know he is truly capable and has a real background.

Even a brick platform can bring immense power. Perhaps some clever people can figure out that the local document issued by Shangzhou City to abolish welfare housing allocation came about after he had a pleasant conversation with his old leader.

The cause and effect are now obvious.

There must be a lot of people saying this behind my back.

If it weren't for the fact that the former leader had always been known for his integrity, one would really suspect that they had some kind of shady dealings.

Therefore, under these circumstances, even if Wei Dong dares to bring cooked food to have a couple of drinks with his old boss, he won't leave a single penny as leverage.

He coughed twice: "The urban development company is just two names for the industrial park, but with the same management team. I personally only provide assistance and support, and I don't take a single penny of compensation from it. So I'm acting purely out of public interest. Let me put it this way, the first two or three batches of housing were probably really trying to meet the basic needs of first-time homebuyers. Do you know what basic needs are...?"

After giving a brief explanation of this trendy term from later years, he pointed to a half-person-high hand-drawn rendering with a brush: "Please take a look. All the buildings in the new neighborhood have a commercial floor on the first floor. Some buildings with elevators even have two floors of commercial space. In other words, in the future, when you live here, there will be restaurants, grocery stores, hardware stores, and appliance stores downstairs. I think people who are not buying a house to live in might be more inclined to buy this kind of commercial space."

Thanks to the loudspeakers, the noisy roadside spaces, from the free market to the sanitary napkin factory gate, and then to the stone bridge, where there were probably tens of thousands of people, suddenly quieted down and everyone strained their ears to listen.

I was surprised by this concept of a mixed-use building.

Some people are already eagerly asking: "How much does this kind of shop cost?"

Wei Dong then made an outrageous demand: "The average price is 2,000 yuan per square meter. Don't complain about the price. The upstairs apartments are fixed assets. Renting them out won't make you any money until the mortgage is paid off. But the downstairs shops are production tools. A 20-square-meter shop costs 40,000 yuan. But if you spread that out over 20 or 30 years, see how much rent you'll get each month. How much money can you make if you use it for business? Even if you rent it out to people who do business, that's just reaping the benefits... It seems a bit like capitalist behavior. Hmm, we don't recommend it."

He got carried away with his conversation and suddenly realized that it might be considered that landlords were exploiting merchants by using the means of production. At least for this period, he would be caught red-handed, so he quickly pulled back.

I sold it to you so you could try to become a self-employed individual; whether you sublet it or not is your business.

A moment of silence followed, then an even more frenzied scramble erupted: "Me! I want to buy..."

"I want to buy 50 square meters! Can I get a loan?"

"I'm canceling my room reservation... If anyone wants my reservation, I'll transfer it to them at the original price!"

Those who can accumulate two to six thousand yuan at this time, or even dare to buy a house for thirty thousand yuan in full, understand the importance of means of production.

With this, what more could you want?

I can live in the shop.

This means we can open a store in the city now!
At this time, individual vendors could only set up stalls or concentrate in some kind of market, like a free market, which was only open during the day and subject to various market management restrictions.

Being able to open an independent store is simply the ultimate dream for individual business owners!
Now, in the free market, a stall of about ten square meters costs fifty yuan a month in rent, and five hundred yuan a year.

In fact, some people are already offering high prices, three to five hundred yuan, to beg for a sublet!

With a daily income of only ten yuan, isn't this production tool cheap?

Unfortunately, it's just a rental, and the price could be raised or I could be evicted at any time.

Once you buy it, it's basically yours forever!
Even if someone in business doesn't know that there's a rough calculation ratio between the rent and the actual selling price of commercial real estate, they still need to be aware of it.

Now I feel I absolutely have to get it done!
Wei Dong was originally going to say, "If you believe in today's business, come back in ten years and kowtow to me. Then you'll know how valuable the shops are."

Most people who buy shops 30 years later will not make money, but buying at this time is basically like buying a money-printing machine.

Even if they only printed pennies, they would still make a profit.

No need, there's absolutely no need for him to waste his breath.

More than 30 apartments were vacated on-site, and the funds were instead invested in purchasing commercial storefronts.

So the final result is that the total sales of more than 700 houses are close to 28 million, of which elevator houses account for nearly 20 million and brick-concrete houses account for a little over 8 million.

But the total price of the shop is over 22 million!

This money can be used as the planning and construction fee for the new urban area of ​​the city development company.

Previously, they relied entirely on their small shop in the free market, which brought in several thousand yuan in rent each month as the basic operating capital for Ding Haifeng and his group.

Aside from barely paying wages and providing some subsidies, there's nothing else they can do.

Now that he has officially invested in real estate, he has instantly become a big shot with more than 20 million in cash profits!

Even if no one dares to take a share of the money, the city development company and the industrial park suddenly become wealthy and powerful, and dare to do many things.

Including the housing payment, the total income from both sides is fifty million...

Lao Tian and Jiang Yong were so surprised they couldn't stop smiling.

My God, so this is where Weidong said he would take us to take off?

This is the power of real estate.

When the average wage was only a few dozen yuan, they dared to sell commercial real estate for two thousand yuan per square meter.

Wei Dong truly lived up to his reputation as a top salesman.

(End of this chapter)