Chapter 455: Renting an Apartment
After Wang Yuanchao and Michelle had communicated, they stood in the same place again, looking at the piece of land in front of them.
Wang Yuanchao knew that in Hong Kong at this time, real estate was
extremely profitable. How profitable was it?
In his previous life, Wang Yuanchao had worked in a domestic real estate company.
The real estate industry in Wang Yuanchao's previous life was already very developed, and the control was already very strict. In addition, the price of land had been calculated very carefully, and it was able to keep up with the housing prices.
At that time, the land cost of real estate development accounted for 50%, and various taxes such as land value-added tax, deed tax, transaction tax, and business tax accounted for more than 20%.
This removed more than 70%, and the actual development cost accounted for less than 20%.
After deducting the construction costs, operating costs, marketing costs, and management of various departments, the real estate boss can still earn about 8-15%.
However, because real estate development is a capital-intensive industry, it can leverage huge capital investments through various sources such as banks and listings.
So the combined profit of 8-15% is also a huge profit, which is beyond the reach of ordinary people.
As for why it is 8-15%? Because it depends on the cost control of each real estate development boss. It depends on how severe and how high the means of these bosses are in cutting corners on building materials, using inferior materials as good ones, and refusing to pay for the project.
Because of the huge capital investment, many bosses make money from this and make a lot of money.
In 1975, Hong Kong was still in the midst of a financial crisis, with a sluggish economy and a sluggish property market. Land prices were cheap, and Hong Kong did not have the kind of land value-added tax that was used in China in the past.
There are only stamp duty and profit tax. The stamp duty is about 1.5% and the profit tax is about 16.5%.
If you do the math in this way, you will know how lucrative real estate is in Hong Kong today. Moreover, as Hong Kong's return to the motherland approaches, with the withdrawal of foreign capital and the rise of Chinese capital, there will be more and more wealthy people in Hong Kong. However, there is a large population and limited land here, and future economic development will not be able to keep up with the rising property prices in Hong Kong . The future Hong Kong will be a development history in which ordinary people are exploited by real estate and the property market.
If Wang Yuanchao holds a large number of real estate projects in Hong Kong in the future, he can continuously absorb the dividends of Hong Kong's economic development through the appreciation of real estate and the increase in rent.
They can allow their families to easily become billionaires just by collecting rent every year in the future.
Therefore, Wang Yuanchao’s business philosophy is different from that of the current real estate tycoons in Hong Kong. Wang Yuanchao’s inner development model is to exchange a large amount of funds through space materials, and then develop various rental projects such as real estate office buildings, commercial streets, and rental apartments in Hong Kong. In the future, all the land purchased by Wang Yuanchao will be used for self-sustaining after the project is developed, to reap the dividends of social development, and to collect rent, rather than just a one-time deal.
Because the future of Hong Kong is a large-scale leek farm where the class with property assets exploits the class without property assets.
"Misiro, you said I should build a five-star hotel here to increase the popularity of the project.
Then how about building five more rental apartments and holding them for long-term rental income?"
Mi Xilu had just discussed the land transaction with Wang Yuanchao. When she heard Wang Yuanchao's idea, she naturally did not pour cold water on him. Instead, she smiled and said, "Dear, the location of this piece of land is excellent. It has a developed economy and a concentrated population.
Building a hotel and some rental apartments here is definitely a very good project, but dear, you also need to consider the living convenience of your project tenants in the future, so it is best to consider the living convenience of the entire project when designing this project and add some commercial buildings. "
Wang Yuanchao agreed with Mi Xilu's opinion, nodded, and said,
"Yes, Mi Xilu, I will build a four-story or three-story large shopping mall downstairs of the five rental apartments.
Bringing in department stores, people's livelihood, clothing, hardware, supermarkets, restaurants, movies, and other supporting facilities will solve the problem of supporting facilities."
"Well, dear, I think this design is okay, but you also need to consider the safety and privacy of the tenants. If your rental apartment is messy and the tenants are unsafe, that will be a big problem."
Wang Yuanchao nodded thoughtfully. In Hong Kong these days, because dwarf mules are everywhere, the safety of the community is a very big problem. Once Wang Yuanchao sets up his own community security property for the safety of the community, he will no longer be able to stay away from the dwarf mules and develop independently like he does now.
But since he was doing business in Hong Kong, Wang Yuanchao had already prepared himself mentally for contact and conflict with the dwarf mules. He had the money and the people, and as long as he could prevent the dwarf mules from carrying out decapitation operations and prevent powerful men like Zhang Ziqiang from targeting him, Wang Yuanchao was not too afraid of these dwarf mules.
Standing on the land in Hung Hom, after Wang Yuanchao had thought clearly about the future development of the land, he and Michelle got in the car and drove towards Tsuen Wan.
Around 1950, a large number of mainland capitalists, bureaucratic families and large landowners flocked to Hong Kong to settle and develop, bringing capital, technology and cheap labor to Tsuen Wan. From then on, the manufacturing industry in Tsuen Wan in the New Territories began to rise. By the 1960s, Tsuen Wan in the New Territories of Hong Kong had developed into a large-scale new town.
It is Hong Kong's main industrial area, with various electronics, garment, textile, dyeing, printing, toy and other industries concentrated here.
Therefore, Tsuen Wan is the transportation hub in the western New Territories, an important passage to and from the airport, and a major economic development center in the New Territories.
Among them, Nan Fung Spinning Mill is one of the largest textile mills in Hong Kong and plays an important role in the history of the development of Hong Kong's textile industry.
It has witnessed the rise and fall of Hong Kong's textile industry and carries Hong Kong's industrial memory.
The factory building of the Zhenshanmei Garment Factory that Wang Yuanchao and Michelle came to see this time is right next to the Nanfung Spinning Mill. After Wang Yuanchao and Michelle parked the car at the gate of the garment factory, Wang Yuanchao, accompanied by Michelle, began to walk into the garment factory. Looking at the 150-acre large factory building in front of them, the building of the Zhenshanmei Garment Factory has a strong industrial style from the outside and is a typical representative of Hong Kong's architecture of this period.
The building has a solid structure and spacious space. After the renovation, while retaining the original industrial characteristics, because it is a garment factory, the architectural appearance of the garment factory has incorporated many modern design elements, such as open staircases, distinctive murals, etc., which gives it a unique artistic atmosphere.
There is a large mural display in the office building of the garment factory, which records the development history of the Zhenshanmei Garment Factory and becomes an important window for customers to understand Zhenshanmei.
(End of this chapter)
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