Return To 1977 Chapter 573: Ask for advice
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After talking about the foreign exchange coupons, Hong Yanwu admired his father greatly. He was in a good mood again, so he took advantage of the situation and continued to consult me on real estate issues.
The relevant information in the newspaper is mainly the remarks of the "great man" "Conversation on Construction Industry and Housing Issues".
This oft-quoted conversation established several principles. The most important thing is that "urban residents can buy their own houses or build their own houses. Not only new houses can be sold, but also old houses can be sold; they can be paid in one lump sum or in installments and paid off in ten or fifteen years. But don't More than twenty years."
Hong Yanwu certainly knows that this is the inevitable development line of history and a practical way to accelerate urban construction and solve residents' housing problems. At the same time, he believed that since it was a policy initiated by a "great man", it must be implemented, and there should be no room for discounts.
On the other hand, there was no relevant memory in his impression. On the contrary, it was not until the 1990s that we heard of the emergence of large-scale commercial housing communities. It was in the mid-to-late 1990s when real estate projects blossomed everywhere and he actually started working in this business.
So this creates a problem. Why has the real estate industry been almost stagnant in the past ten years despite the house purchase policy?
It is impossible to say that people in Beijing are too poor to afford houses. Not to mention that some families themselves have a strong foundation, but a group of people who get rich first will soon emerge.
Who doesn’t want to improve the living environment of his or her home? Is it just because of the opposition and questioning voices that have emerged? Is it because everyone’s ideology is too restrictive?
This is the question that Hong Yanwu wants to understand right now, but cannot.
Fortunately, his father did not disappoint him, and Hong Lucheng taught him another good lesson.
Hong Lucheng also believes that this policy has no problem in theory. The house is completely for sale as a commodity. The money earned can be reinvested in new projects to complete urban construction and residential improvement goals.
However, although the route is correct, it cannot be achieved overnight because of too many practical difficulties.
On the one hand, the current overall wage level in society is low, and few people can afford to buy a house. On the other hand, the real estate purchase and sale policy and the current public housing allocation system are the biggest contradictions.
How many people are willing to buy almost free housing through their work units? Even rich people will feel that it is a big loss to spend money to buy a house because they watch others allocate houses for free.
In this case, if the house price is set high, it will not be sold, but if the profit is not high, how can we complete a virtuous cycle and obtain sufficient funds to invest in building real estate?
In response to these problems, even if the "great man" proposed to adjust the rent, it would be useless because the intensity of promotion is too small. The implementation of policies in various places is certainly a formality.
Don’t forget, if you are tight on funds and still have to build a house, you will definitely have to worry about how to save costs. If it is not done well, it will become a large-area tube building or a simple building. Moreover, the current policies prevent construction companies from benefiting from building houses at all. How can they be motivated? Combined with various shortcomings, the quality of housing is really worrying.
So, the biggest problem is not only the lack of consumer groups, but also the lack of motivation and funds to develop real estate.
The only solution is to abolish the public housing allocation system so that the house buying model can be truly accepted by people.
In addition, if we want people to be satisfied with the quality of houses and achieve rapid and healthy development of the overall market, we must also allow construction companies to benefit from it and separate officials from operations.
The more freedom and separation given above, the better the effect will be. Because history has already proven that if any business activity is only government-run, it will be difficult to achieve healthy development. This is exactly why reform and opening up is necessary.
If these two points cannot be achieved, everything will be in vain and the implementation of the private home purchase policy will be a mirage. That is to say, it just looks beautiful, but it cannot be implemented at all.
But having said that, Hong Lucheng is not blindly pessimistic about the implementation of real estate policies.
At least with this policy proposed above, there will be no further transformation of private housing into public ownership. This directional U-turn strengthens the legitimacy of private real estate in disguise. So aren't the old houses of the Hong family and Wanyan family saved? Of course it is also a very necessary and good thing.
For this analysis, Hong Yanwu almost wanted to applaud his father. His doubts were completely clarified.
Isn’t it? After all, isn’t it just an issue with the economic system? This is the ultimate goal of reform and also the biggest obstacle to reform.
He couldn't help but praise sincerely, "Dad, I think you have the ability to be a high official. With your level, you are at least as talented as the Minister of Finance!"
As the saying goes, a person can be flattered but never worn. Seeing that my son is so convinced makes me happy too. Hong Lucheng couldn't help but say a few more words.
"Although your words are flattery, they are not completely unreasonable. I got this ability from doing business, and I only have some means in money. I am not bragging. I am currently in a predicament. Don't look at it. Those who are officials are in trouble. If they are asked to handle it, they may not be able to handle it. At least if you give me a corner of the capital, I am confident that I can achieve something."
When he said this, Hong Yanwu really didn’t believe it. He has many years of experience in real estate development. Now after listening to his father's analysis, he feels that there is currently no solution. He really couldn't see any hope of development, even partially.
But, you have to be knowledgeable. Even if the old man exaggerates a bit, he can understand. Who doesn’t brag about X? No matter how old my father is, he is still a common man who eats whole grains.
So he just smiled and played it off.
"Yes, yes, you are wise and powerful. With your participation, I believe the efficiency of the reform will be greatly improved. It is really buried, the people's loss..."
But who can you score against with this attitude? Hong Lucheng has been in the mall all his life. Who hasn't seen it before? Can't you tell if you don't mean what you say?
Of course the old man is not happy. His face sank, he took a map of the capital and pointed it out to Hong Yanwu.
"Your father is not lying to you. Just give me this piece of land. I only need the start-up capital for one or two projects. Not to mention building apartment buildings on these streets. In less than ten years, I can even use it. He is full of high-rise buildings and villas, as well as hotels, restaurants, schools, hospitals, and movie theaters..."
Hong Yanwu took a closer look and was stunned immediately.
Where are you referring to? Donghuan North Road area!
To the north is "Liangmaqiao" and to the south is "Baijiazhuang". It also includes two east-west streets, "Dongzhimenwai Street" and "Workers Stadium North Road". Almost the entire embassy area is included in it.
To put it bluntly, it will be the core area of the East Third Ring Road CBD in the future!
It translates to a particularly lofty name - Beijing Central Business District!
How could Hong Yanwu not be surprised by this? Perfunctoryness naturally turned into seriousness, and indolence quickly turned into respect.
"Dad, are you trying to trick foreigners?"
One sentence blurted out uncontrollably, but now Hong Lucheng was surprised.
"Hey, your mind is moving fast enough. It's a bit spiritual. Can you tell me what to do next? How sure do you think this can be done?"
Hong Yanwu couldn't answer these two questions. He only knows that foreigners have money and can afford houses, but the problem is that the current policy does not allow foreigners to buy houses. He really didn't know how to operate it.
In addition, he only knows that this entire area is convenient to the airport and that it is the embassy area. In the future, as foreign companies gather in the surrounding area, it will indeed develop into a business district in the capital.
But now there is no sign at all. He really doesn't understand why his father, who is so discerning, would like to see this place.