Chapter 14: Cost-effective
In the first 10 years, the transfer of state-owned land use rights was mainly based on state-owned land allocation (that is, you need to go to the government for approval, and the government finally agreed to directly allocate the land to some enterprises or other units after eye research, so that the land cost is very low, but the way to obtain it is relatively difficult, unless you are a school, hospital, state-owned enterprises, etc., such as government enterprises and institutions), which is relatively lagging behind the market economy.
The real estate transaction market has completely entered the market economy, but the way of land transfer is still in the mode of the planned economy stage. In 2002, a document was officially issued to issue the "Regulations on the Transfer of State-owned Land Use Rights by Bidding, Auction and Listing", namely Order No. 11, which clearly stipulates that all kinds of business land such as commercial, tourism, entertainment and commercial housing must be transferred by bidding, auction or listing. A year later, it was expressly stipulated that state-owned land that did not meet the conditions for bidding, auction and listing could be transferred by agreement (so that the cost of land would be much lower).
Since the current state-owned land transfer is mainly by agreement, and the agreement transfer is priced by the government to a large extent, the value of land use rights is not reflected in the market, therefore, although the agreement transfer system is fundamentally different from the administrative allocation system, it is not a market allocation system that fully embodies the law of openness, fairness and justice, but should be defined as a quasi-market allocation. This pattern of coexistence of the quasi-market allocation system and the planned allocation system continued until the issuance of Document No. 15 ****** in 2001. After that, the state issued a series of laws and policies closely related to the allocation of land resources market, and the pace of land market construction began to accelerate rapidly.
A developer at Mr. Zhang's level will definitely not notice the changes in national policies in the future, so he can talk to him first, so as to facilitate the development progress in the past few years. Although land is only a small piece in the early stage of real estate development, it is always the most critical link, which directly affects the subsequent development process and development cost. So it must be taken seriously.
Finally, when the day came to officially participate in the sale, Chairman Zhang has been competing with several companies, while the other few are obviously rich and have strong government resources. Li Zhong guessed the ending from the beginning, and in the end, Chairman Zhang touched his nose, but now he also has a considerable amount of money. Big projects can't be developed, but some other projects can be managed.
After Li Zhong waited for Mr. Zhang to come back and relieve himself a little, he took the initiative to talk to him about how to cooperate with others to do real estate development at the minimum cost. The others are the GQs who are on the verge of bankruptcy under the implementation of the GQ reforms, and the workers who are about to be laid off. Many of those GQs with poor benefits are about to go bankrupt, and Li Zhong suggested that Mr. Zhang help them as a savior, but in fact, it is not simply to help them, it is a win-win model.
These GQ from top to bottom are not easy, up and down nearly 100 employees work hard for the company for half a lifetime, the income is relatively stable, but it is not a high salary, under the impact of the market economy, those income, can barely support the family registration, for children to go to school.
Li Zhong's suggestion is that GQ will use their land as a shareholder, and Mr. Zhang will pay for the development and develop real estate projects together, and then sell a part of the housing as welfare housing for the incumbents at a very low price, which can be regarded as a welfare housing for them, but the quota is only one-tenth of the project. And build some public welfare fund commercial real estate for them, and the benefits generated by these shops every year will give some benefits to employees, help them pay some pension insurance or something, until they officially retire. Then arrange a few slightly larger houses for individual personnel, and give a few more low-cost places, GQ should be willing to do it, and how to divide the houses for the state-owned enterprises to do by themselves, and assign them to the shops they can arrange by themselves.
Li Zhong's suggestion to Mr. Zhang is to negotiate the plot first, let their employees pay part of the money themselves, so that our start-up capital is abundant, and now it is legal and compliant, find a good construction unit as soon as possible, the early land procedures need to be registered in the relevant departments, and the follow-up steps up to handle all aspects of the formalities, and the construction can start next year. The construction can be pre-sold to the society on a large scale, and the current real estate market supervision is not so strict, so there is no big problem, so that the fastest speed of construction, in the most efficient way of sales, the funds can be quickly withdrawn, and the profit is not lost.
In the end, I cooperated with a medium-sized GY company, because the geographical location of this enterprise is very good, although I dare not say that it is superior, but as a residential project, it is more than enough, this company itself has nearly 200 acres of vacant land allocated by the government many years ago, and the nature of the land is comprehensive land (which means that you can build a house, and building a house is originally planned to build a welfare house for their employees, but the company's efficiency is very bad, how can there be funds to build a house), Mr. Zhang specially brought Li Zhong together to talk to the person in charge here, the state-owned enterprises have basically gone bankrupt, how dare to think of such a good thing, basically what Mr. Zhang said they agreed。 In the end, the result of the negotiation was that the state-owned enterprises first took out 100 acres of land for cooperative development, and set aside 15,000 square meters of houses for their employees. But not for free, but at a very low price, requiring them to pay 10% of the house deposit. Other shops are determined according to the planning and design.
When the cooperation agreement was finally signed, Mr. Zhang deliberately asked Li Zhong to read it again to ensure that it was correct, and then officially signed the agreement. This small move is enough to prove that Li Zhong's current status in Mr. Zhang's mind is a fight with the legendary military advisor.