Chapter 068 Real Estate Development
"Ah Hao and I are optimistic about the future development of the Special Economic Zone, so we are willing to take the lead and see if we can reach a cooperation with the Housing Management Bureau of the Special Economic Zone for real estate development!" Li Xuan nodded and said, after listening to what the other party just said, he suddenly had a little more affection for this Director Liu, "But we have a few questions that need to be clarified!"
"Li Sheng, I already feel that your views on our mainland are very sincere and not prejudiced. If you have a problem, you don't have to bend around it, we already treat you as our own person, and we can discuss and solve it together!" Cai Yongmin said at the right time.
Li Xuan looked around at everyone before he spoke unhurriedly: "Everyone may already know Ah Hao's identity, he is the son of Mr. Lin Guitai of the Lin Group. I think Director Choi and the Deputy Director must have contacted a number of well-known large real estate development companies in Hong Kong, such as Lam's Properties.
Less profit is a secondary issue for larger companies, who are more interested in risk aversion. Therefore, unless the deep-sea special zone shows very obvious development potential, they are unwilling to wade into this troubled water full of unknown risks in their opinion!
But I'm not the same as Hao. Ah Hao is unwilling to continue to shelter in the shadow of the Lin Group, and has the ambition to come out and make a career on his own! I happen to have some spare money, and I am willing to take it out to give it a go! And we are both optimistic about the future development of the Deep Sea Special Zone, so we hit it off and established Feihong Real Estate!
Feihong Real Estate is a small company that has only been established for a few days, and the general manager, Ah Hao, is also a fledgling student, so we don't shy away from our disadvantages. But compared with other companies, Feihong Real Estate also has obvious advantages, because Ah Hao has a father named Lin Guitai as a backing.
Just like now, Feihong Real Estate has just been established, and he can immediately find a talent like Mr. Zhang Wenjin from Lin's Real Estate, who has rich experience in the construction industry, was born in the mainland, and knows the situation in Hong Kong and the mainland very well!
If Feihong Real Estate makes up its mind to invest in real estate projects in Shenhai City, Ah Hao can use the strong design team of Lin's Real Estate to quickly come up with a detailed and reasonable project design plan within a few days! These are incomparable to Liu Chengcheng, the boss of Miaoli Group, who is engaged in department store wholesale and retail, and is actually a layman in real estate!
Since Ah Hao has decided to break away from the Lin family's wings and work his own, I will bear the financial problems at my own discretion! Feihong Real Estate now has a registered capital of 1 million Hong Kong dollars, and I can increase this amount tenfold at any time if necessary.
Before coming to the SAR, I had just met with the senior managers of Standard Chartered and HSBC, and they were willing to provide tens of millions of dollars in credit guarantee to my other company, Hong Kong Oriental Electronic Technology Co., Ltd., so our strength is absolutely trustworthy!"
Li Xuan lost no time in showing his strength, Lin Guitai's tiger skin was decisively borrowed by him and draped on Lin Yuhao, and the next thing was handed over to Lin Yuhao to be responsible.
"Director Liu, Director Fu, I would like to determine a question to the two of you first, whether the terms you promised in the development of the East Lake Liyuan project with Miaoli Group, that is, the terms on the purchase of houses and accounts, are also applicable to the cooperation project with our Feihong Real Estate?" Lin Yuhao took over the conversation according to the plan discussed with Li Xuan before.
Others were also shocked by what Li Xuan said before, that they could get tens of millions of dollars in bank endorsements, and they didn't come back to their senses for a while.
Only Director Fu Yaonan was still calm, he swept Li Xuan with an indifferent expression with his spare eyes, and then opened his mouth to answer Lin Yuhao's question: "Yes, that's right! This policy has been approved by the Municipal Party Committee, if Feihong Real Estate is willing to invest in the Special Economic Zone, your project is also applicable to this policy!"
Lin Yuhao breathed a sigh of relief and said in a very frank tone: "That's good! Shenzhen is too far away from the city of Hong Kong, and it is really inconvenient to go through Luohu Customs to travel between the two places. However, it is not realistic for real estate projects in Shenhai City to be sold locally, and they must be sold in Hong Kong.
It is certainly unrealistic to want Hong Kong citizens to come all the way to Shenhai City to buy houses and live in them. According to our analysis of Fei Hung Real Estate, the group that is really interested in buying a house is the new Hong Kong citizens who have gone to Hong Kong from the mainland to develop in recent years, but still have their families staying in their hometowns in the mainland.
If they can buy a house in Shenhai City and send a household registration, they can not only take care of their relatives nearby, but also solve the problem of their family's urban household registration. You must know that in your mainland, the rural hukou and the urban hukou are an insurmountable barrier, and with this **, it is enough to attract a large number of people to buy a house!"
Liu Yuanfei also nodded in agreement: "Before the liberation of Hong Kong, the total population was less than 1 million, and hundreds of thousands ran over during the liberation of 49 years, and hundreds of thousands of people were smuggled in the past during the difficult period of three years. Most of these people who have passed from the mainland still have their families in the mainland!"
"Generally speaking, very wealthy people have already brought their whole families to Hong Kong, and the remaining relatives in the mainland may not be willing to take care of them. And people who are too poor cannot protect themselves, and even if they have the will, they can't take care of their families. Only those who are not poor or rich take care of their families the most!
So Brother Jin and I carefully analyzed, most of these people are now born as ordinary citizens of Hong Kong, and they have some savings but not too much. Therefore, the size of the house should not be too much, 4 to 500 square feet is the best!
Taking Taikoo Shing in the eastern district of Hong Kong Island as an example, housing prices have soared in recent years, and the price of newly launched houses of the same size is more than 500,000 yuan. If the price of a house in the deep sea is set at about HK$2,500 per square foot, the price of a house is just over 100,000 yuan, which is only one-fifth of that in Hong Kong, it will definitely attract the attention of many people!" Lin Yuhao continued to say slowly.
"The key issue now is how to distribute the profits between Feihong Real Estate and the real estate development company of the Special Economic Zone!" Li Xuan continued.
Only the two directors of the Housing Authority have a say in this issue. Cai Yongmin and Fu Yaonan glanced at each other before they spoke: "Referring to the previous cooperation with Miaoli Group, we will take 85%, and you will take 15%. ”
"I don't agree, we need to be responsible for the development process of the whole project, you are just waiting to collect the money, and the proportion we take is too low!" Lin Yuhao shook his head and said.
"It can't be counted like that, the land we take out is the most precious asset. According to your experience in real estate development in Hong Kong, the land price accounts for at least 70% of the total cost, and we do not need to pay the land premium for the cooperation between the two sides, so it is reasonable for us to take the lion! Moreover, after you get the land, you can apply for a building loan from the bank, and your own financial pressure is almost none!" Fu Yaonan explained.
"Do you know why Liu Chengcheng is willing to accept such a low profit share?" Li Xuan said loudly, attracting everyone's attention, "I guess there is definitely no clause in the cooperation agreement you signed that all proceeds from the purchase of the house must be transferred to a bank account under the joint supervision of both parties.
The sale of the property must be handed over to the Miaoli Group in Hong Kong, and all the proceeds from the sale of the property will naturally go into Liu Chengcheng's personal pocket first, and will sit down with you to share the money after the project is completely completed. Before that, you don't get a penny, and all the funds will be used by him for free.
In case of a risk in the middle of his Miaoli Group, it is still unknown whether the funds that he took to turn over will eventually reach you! Since all the risks are borne by you, he is naturally willing to accept it no matter how low it is!"
Fu Yaonan and Cai Yongmin's faces suddenly became ugly, and after listening to Li Xuan's little bit, they realized that they had been fools.
"Besides, the bank's building loan is not as easy to approve as you think, at least Miaoli Group wants to take the East Lake Liyuan in Shenhai City, and it is difficult to apply for a loan from a bank in Hong Kong, even if the interest rate is approved, it will be very high!
The reason why we are willing to try is because after analysis, there is a great possibility that the project will be an instant hit when it is sold! As long as we can sell one-third of the pre-sale properties, we can support the completion of the entire project, so we are willing to give it a try! Even if the pre-sale properties cannot be sold, it is only a loss of some upfront investment, and we can afford it!"
The so-called sale of off-plan property means that the real estate project is still only stored on the drawings, and the real estate company has already taken out the house for sale in order to recover the cost in advance. If the buyer is willing to pay the full amount in advance, the real estate company will give the customer a maximum discount. Customers can also choose to pay a part of the deposit upfront and then pay in installments according to the sales contract as the construction progress of the project, which is much less preferential than the previous option.
This way of selling off-the-plan properties was first invented by the current Hong Kong tycoon, Mr. Fok Yingdong, in the fifties and sixties. When the Hong Kong property market was at its hottest, even if you had the money, you couldn't buy the existing houses of the new development, and all the houses were sold out as early as the drawings came out.