At the time, Qifu New Village advertised "move in for 10,000 yuan," but this 10,000 yuan was actually a deposit to deduct miscellaneous expenses for purchasing a house. The down payment was 20%, which was a little over 30,000 yuan, and could be paid off in two installments over two years after moving in a year later. The remaining 80% was financed through a mortgage loan, with monthly payments of over 1,300 yuan. "This refers to a two-bedroom apartment, which is about 60 square meters. At that time, the price per square meter was 2,800 yuan."

"Settling down inevitably requires buying a house, and the future of China's real estate market is definitely bright."

Shen Fang nodded. Huang Fulai was a very insightful real estate businessman, and what he said hit the nail on the head. Many real estate developers these days still don't really understand how to play the real estate game.

Real estate companies make money by developing and selling real estate projects. Typically, the business process of a real estate company includes the following stages:

Land acquisition: Real estate companies acquire land through auctions, purchases, and other means, usually in urban areas.

Real estate development: Real estate companies develop the land they acquire, including building houses, office buildings, commercial centers, etc.

Sales and leasing: Real estate companies generate revenue by selling or leasing real estate projects.

Property management: Real estate companies provide property management services, including house repair, cleaning, security, etc.

Through these processes, real estate companies can generate revenue from the following sources:

Land acquisition revenue: Real estate companies can generate revenue by acquiring land.

Real estate development revenue: Real estate companies can generate revenue by developing real estate projects.

Sales and leasing revenue: Real estate companies can generate revenue by selling or leasing real estate projects.

Property management revenue: Real estate companies can generate revenue by providing property management services.

In addition, real estate companies can also generate more revenue by collaborating with other companies, such as financial institutions and construction companies, to jointly develop real estate projects.

Of course, all of this is under the premise of compliance with laws and regulations, no unfinished projects, and no loan fraud.

The real estate industry is a very profitable industry, which is known to many people. However, the distribution of profits in the real estate industry is something that many people are unaware of.

The cost price of a house is actually only 15% of the total selling price. In other words, whether a property is priced at 50,000 or 100,000, its cost price is only 15% of the current selling price.

The biggest beneficiary is the government, which takes 50% of the profits. Developers and banks each receive 15%, and the remaining 10% goes to property speculators.

This is the profit margin earned by primary developers. It's not Shen Fang's target. While developing new homes can certainly yield huge profits, the complexities involved are unimaginable. In this chaotic era, there are countless cases of hired murders, collusion with officials, defrauding banks, and forced demolitions. Shen Fang doesn't want to get involved with these unscrupulous businessmen.