A century-old wealthy family that rose from Shanghai

Chapter 148: Real Estate Earthquake
Chen Guangliang once again came to the "Yuan Tonghai Official Bank" and met its head Yan Zhiduo.

"Guangliang, we have agreed to your loan. The interest rate is 10% as you wish. How about it?" Yan Zhiduo said in a friendly manner as soon as they met.

Because he was a fellow townsman introduced by Fang Jiaobo, we were quite friendly at the beginning, but we didn’t know each other very well after all.

In the next few days, Yan Zhiduo investigated a lot of things about Chen Guangliang, and also went to the Changjiang Car Dealership for inspection. The overall situation was very reassuring.

The word "credibility" can be applied to Chen Guangliang.

Chen Guangliang's expression lit up, and he immediately said, "Thank you very much, Mr. Yan. If possible, I hope to get the loan as soon as possible, because I'm in a hurry to buy land on Yuyuan Road, and the price of land there changes every day."

Today, the land prices on Yuyuan Road in the west and middle sections have risen to 5000 to 10000 yuan per mu, and the land prices in the east section have risen to 10000 to 20000 yuan per mu (the most expensive section is of course the one past Jing'an Temple, which runs parallel to Nanjing West Road).

Similarly, the land on Nanjing West Road is basically priced above 2, and the highest can reach about 20; further on is Nanjing East Road, where the price is between 20 and 40 yuan per acre. The price increase here is not large, after all, it is already a very mature business district.

It can be said that if Chen Guangliang did not want to develop the land in Shanghai South and Zhabei in the Chinese area, he could only develop the marginal areas of the concession such as Yuyuan Road.

And we have to act quickly, otherwise there will be tens of thousands of dollars on the edge of the concession!

Yan Zhiduo said, "Okay, we'll lend you the money tomorrow and sign a formal loan agreement. But I'm a little curious. I heard you own nearly 100 acres of land on Yuyuan Road. Isn't that enough land for you to develop residential properties? Also, do you have enough funds for construction?"

The 'big landlord of Yuyuan Road', as long as you ask around, you will know that it is Chen Guangliang.

Chen Guangliang said mysteriously, "After a while, Mr. Yan will understand where my construction funds come from, but I can't tell you now."

Yan Zhiduo nodded and said, "Okay, let's wait and see!"

When he lent money to Chen Guangliang, he did not need to consider whether Changjiang Real Estate had the construction funds to build the house. After all, the land itself was also an investment.

Of course, this time Chen Guangliang’s collateral was only the Changjiang Car Dealership, the total value of which was over 300,000 oceans.

Afterwards, Chen Guangliang took the initiative to say goodbye.

He was still very satisfied with the interest rate of 10%. These money houses did not have as many advantages as banks, but the interest rates on loans were lower.

Of course, the reason why the interest rate is low is because of the current market conditions - financial institutions already have a lot of deposits and are in urgent need of finding a way out for the funds!

Even if you have a high-quality property as collateral, the loan interest rate can be as low as 8%.

For example, the foreign-funded real estate company "Ye Guang Company" was able to obtain a long-term low-interest loan of 6 to 8% from HSBC. This "Ye Guang Company" was a well-known real estate company in Shanghai. In the early days, it mainly built residential houses for Chinese people. The later Broadway Building was also invested by this company, and the construction cost alone was more than million oceans.

After obtaining the loan, Chen Guangliang immediately chose to continue purchasing land on Yuyuan Road, and later planned to build a large number of new-style lanes.

Now that prices have gone up, more land has become available on Yuyuan Road, as many of them are owned by "speculators".

When Chen Guangliang first got involved in Yuyuan Road, it was basically farmland with only a few houses. But now, in less than two years, all the farmland has disappeared, and has become land with "road deeds", and most of it has been transferred.

It can be seen that the speculation in this area is very hot!

One day in late July.

A "temporary sales office" has been built on a piece of land in the western section of Yuyuan Road. For a long time, it will serve as the sales office for all projects developed by Changjiang Real Estate on Yuyuan Road.

"Boss, everything is ready. This is the sand table of Yuyuan Road. It can basically give customers a clear understanding of the location of the land in the purchasing area," Guo Deming introduced, pointing to a large sand table.

To create this sand table, Changjiang Real Estate dispatched "surveying personnel" to survey Yuyuan Road and its surrounding areas, and then marked all of Changjiang Real Estate's "territory" on Yuyuan Road by building blocks.

Chen Guangliang took a stick from a staff member and began to identify the path on the sand table from west to east. "This is 'Zhaofeng Park (later Zhongshan Park)'. A little further, this is our second development, 'Sunshine Garden (Lane 1136, Wang Boqun Residence)'. This is our new project."

Chen Guangliang knew the alleys of Yuyuan Road very well, and he also knew the land he owned very well. At this moment, he was identifying the buildings on the sand table, feeling very proud.

In the past ten days, he started to secretly buy land on Yuyuan Road, and the progress was quite smooth. The main reason was that the current price had risen too much, and people who speculated on land were very willing to take action.

It is expected that he will add about 30 mu of land in the western and middle sections of Yuyuan Road.

"The sand table is fine. Are your sales staff familiar with it?" Chen Guangliang turned around and said to the people in the sales office.

"Familiar"

Everyone answered that none of them were full-time salespeople, but employees who held multiple positions.

Slow down, management has to act as salespeople.

In fact, every property for sale has a "mark" on the building blocks, indicating how many "lanes" it belongs to.

Subsequently.

Chen Guangliang came to the place where the "property brochure" was placed, picked it up and started to check it.

The first batch of villas to be sold totaled 122 buildings, which were basically the land purchased from Wang Xiancheng and Wang Juncheng. The total area was over 40 acres, divided into 5 plots of land.

Therefore, there are five "sites (alongs)" on the "property book", and customers can choose which alley, room number, and floor to buy, whichever comes first!

In terms of pricing, it's also very clear:
Properties in the west section: second floor 4699 yuan, fake third floor 5099 yuan, third floor 5599 yuan (all transaction taxes are borne by the individual).

For the middle section of the property: the second floor is 5099 yuan, the fake third floor is 5599 yuan, and the third floor is 5999 yuan (all transaction taxes are borne by the client).

Why do we need to specifically explain that transaction taxes and fees are borne by the individual?
It's very simple. The housing transaction tax in Shanghai is very expensive and there are many types. The overall amount is about 20% of the total price. It can be paid in one lump sum and there is no need to pay taxes every year.

As for collecting rent, you need to pay taxes every year!
"The down payment is 1500%, which is equivalent to a down payment of about 2000 to yuan for one floor, and then you need to pay more than yuan each installment, for a total of installments."

Guo Deming said, "Take the cheapest second floor in the west section as an example. The rent has already risen to 50 yuan, and the transfer fee is 600 yuan. Buying a house is actually more cost-effective. And the property rights are your own, which is equivalent to a fixed asset, which is much more attractive! Yuantai and I are both planning to buy a floor for our own use!"

Although the original "construction-agent model" is equivalent to "living for free", the funds obtained after 20 years are still the principal.

But the interest of "owning a house" is different. The rent will increase after you buy it (rent will also be counted if you live in it yourself), and the value of the house may appreciate in twenty years (everyone thinks so). The title deed in hand is equivalent to a sum of money, and it is very stable money.

Chen Guangliang immediately tilted his head and said, "Company employees can get a 10% discount on their housing purchases. This will apply from now on. Also, I plan to reserve the buildings at the back for staff housing."

Guo Deming and Lu Yuantai were overjoyed. After all, a 10% discount would mean several hundred dollars.

Originally, the two of them had agreed to buy a two-story house on the west side of the street, a price they could afford: 4699. Last year, they each earned 2000 yuan, and after deducting living expenses, they had saved 1500 yuan for a down payment. The monthly installments of just over 100 yuan were also affordable for us.

“Thank you, boss. We decided to buy the house after all!”

"Well, if you have the ability, of course I can consider it!"

Everyone will only earn more this year. The two of them will earn at least three or four thousand dollars. After all, the profit will be good this year.

When the other employees heard that there were staff rooms, they also became excited.

Chen Guangliang also did some calculations. This time, the sale of 122 buildings could bring the total sales volume to 195 million yuan.

He will become a millionaire in one fell swoop!

How much profit can be made from this?

First of all, the construction cost. The average cost of a building is 4000 yuan, and the total cost is 50 yuan.
The land cost, if calculated based on the purchase price, is only 20 yuan; if calculated based on the current cost, it is almost 25 yuan.

Tax costs, construction tax is not high, generally less than 8% of the construction cost, which is about 16 yuan.

The company's costs will not exceed 5 yuan, including staff salaries and activity expenses.

The total cost was 95 yuan, which was a profit of more than double.

If we calculate the price at which the land was purchased, the total profit would be 105 million yuan.

Isn’t this much more profitable than selling land?
The land he bought for 20 yuan would only increase in value to 50 yuan the next year, and he would only make yuan.

After making sure all the work is ready.

Chen Guangliang instructed Guo Deming, "Put the ad in Oriental Daily for seven days. We'll open the sale on May 5st, and preheat the ad three days before the opening. Also, set up a red carpet and festive elements, and hold an event on the opening day."

There is only one week left until the opening, and of course all the work has already been done.

"Okay, I'll get ready right away!"

Everyone started to work as if they were injected with chicken blood, after all, this was a business involving two million.

Four days later (4.28).

A striking advertisement appeared in the main edition of the Oriental Daily News, along with a simple drawing of a house:

【Well-known real estate company, Changjiang Real Estate Construction, Yuyuan Road villa in the public concession;

Can be purchased in layers, with title deeds;
The minimum down payment is only 1410 yuan, and the minimum monthly payment is 137 yuan for 24 installments;
The house will be delivered in one year with high quality.

Opening on May 5st, Location]

As soon as this advertisement was released, it immediately attracted the attention of more than 5 readers of Oriental Daily.

Because house advertisements are rarely advertised like this, and they also include pictures.

The renowned writer Lu Xun recently purchased several newspapers daily, including the Oriental Daily. He felt that the Oriental Daily was more of a "public newspaper," not a "vulgar newspaper." He also felt that other newspapers could emulate its editorial model.

"Hey, I can buy a house with only a down payment of 1410 yuan?"

Lu Xun was attracted at first sight because he was really dissatisfied with his current housing.

He has moved three times in Jingyunli:

The first time, at No. 23 Jingyunli, there was a lawyer who had a child who kept throwing rocks at their house. When Lu Xun came to the door, the lawyer not only failed to discipline the child, but indulged him. The child then became even more aggressive and threw firecrackers into their pot. (Wow, a great writer could be bullied like this.)
The second time he lived at No. 18 Jingyunli with his younger brother Zhou Zuoren. However, his brother's children were still young and his wife was pregnant, so they had to move again.

The third time was at No. 17 Jingyunli, where I had recently moved in. However, not long after moving in, a dispute arose over water and electricity ownership. Now I can only use the water and electricity from the Chinese Concession, but the power supply there is insufficient, which greatly affects my writing, and the water quality is not as good as in the concession.

The experience of moving three times made Lu Xun exhausted, so he was naturally very interested in the advertisements of Changjiang Real Estate.

"Guangping, do you want to buy a house?"

Xu Guangping was already pregnant and naturally wanted to settle down, so she said, "It's just that this house won't be delivered for a year, and I'm worried that we'll have some changes!"

She knew exactly what kind of person her husband was, and they might just hide from him someday!
Lu Xun immediately said, "Don't worry. Yuyuan Road is a concession, and it can eventually become a residence. The main thing is that you're pregnant, so it'd be best if we could own our own house in Shanghai. I remember this real estate company has already developed several new lanes, so they should be reputable. We can go check it out when the time comes!"

"it is good"

Lu Xun also did some calculations and found that a one-story house with a total value of four or five thousand could be paid off in two years. In this case, they would naturally prefer to buy the house.

Even literary giants like Lu Xun and Zhang Qihua were moved, let alone small businessmen, executives and other middle-class people!

Of course, it also caused a lot of discussion!
"How can this house be sold in layers, and they still brazenly claim that they can get the title deed?"

"I doubt this, too. Could it be that the Municipal Council allows this?"

"Changjiang Real Estate is a well-known real estate company. If they promise to have a property deed, it must be real."

"This installment payment method is quite good. Many people find it difficult to come up with four or five thousand dollars at once. If you only need to come up with three layers and pay the rest in installments, then many people can afford to buy a house."

"I want to go see how it's sold!"

For a time, it caused a great impact on public opinion in SH City.

Changjiang Real Estate has always been a well-known company, especially in the real estate industry. It just innovated the "construction on behalf of others" model last year, and now it has launched a "phased and layered" model.

Business people can see at a glance that this contains a huge "real estate revolution", because "installment" and "stratification" mean that the number of people who can afford to buy a house will increase several times, or even dozens of times, and this will be a huge market.

But the problem now is that many people are confused about whether this "tiered sales" is really legal?

(End of this chapter)