Qin Tian smiled awkwardly, and explained: "Yadan, we are engaged in real estate development and doing small business is the same reason, mainly for making money..."
"Long wordy!" Fang Yadan interrupted him scoldingly: "If you want to have class with me, I will talk about it later when I have time. I will ask you, will the plot of land be photographed for 2.3 million per acre, will you lose money?"
Qin Tian asked back: "Then I ask you, how much did you buy this Ferrari sports car for?"
"4.8 million!"
"OK, if two identical Ferrari sports cars are placed there, one place sells for 4.8 million and one place sells for 9.6 million, which one would you buy?"
Fang Yadan was stunned.
Qin Tian explained: "If the land price in Minshan is calculated based on the land price in Jiangcheng City, the starting price is up to 900,000 yuan, and it can be sold for about 1 million yuan. The city is already very satisfied."
"Of course, as a seller, they certainly hope to sell as high as possible. Before the city was ready to sell this piece of land, the senior leaders had visited me in the provincial capital, and of course they had also looked for other companies. I even heard about it. They also organized investment promotion groups to the capital and coastal cities to attract investment."
"If I didn't make a mistake in my judgment, the city was only able to raise the price of 1.2 million yuan after receiving information that a powerful company such as our Qin Group is willing to come to Jiangcheng for development. Far away from the value of this land."
"Our company's team has conducted a field investigation. Even if it is developed by us or other large groups, it can spend 1.3 million yuan, which is already the ceiling of this land. Considering the possibility of malicious competition, we will increase it at best. A hundred thousand to two hundred thousand, and going up is nonsense."
“Fan Jianming’s price is not auctioning the land at all. As his uncle said just now, he is completely ruining the house, even I think he is worried that the speed of the ruin is not enough, and he can’t wait to ruin the house overnight. Finish!"
Fang Yadan then understood why Li Qianqian repeatedly clamored that it was inevitable. Zhou Yaping only limited the price to 1.5 million per mu. There was a certain basis and reason.
It turns out that the value of that piece of land is only 900,000 yuan at most, but you think there is a large group from outside.
The addition of 400,000 yuan to the original price increased the value of that piece of land by 80 million yuan at once, which was quite cheating.
Fan Jianming did the best, and set the price of 2.3 million yuan. If the transaction were really used at this price, compared with the 900,000 yuan originally imagined in the city, this land would have made nearly 300 million yuan more. .
What is the concept of three billion?
If the total investment in this piece of land is about 700 million yuan, it will take at least eight years for the entire project from the start of construction to the completion of the sale according to the current development market conditions.
On the basis of a one-to-one profit, you can make 700 million in eight years, but you have to give out 300 million more to the city for no reason, that is to say, three years are spent in vain.
This is still based on the price of the real estate market, which has been stable for the next eight years, or is on an upward trend. If it declines, then it will really lose money.
Because buying up and not buying down is the universal mindset of people. Once the entire real estate market declines, the more you sell at a lower price, the more dissatisfied others are, because everyone is waiting to buy the bottom.
This is why in many cities, there are many powerful developers, and the development of real estate is not low. As a result, they have become unfinished buildings.
If the assets are not very strong, or even invested in high-interest loans outside, once the house cannot be sold and the creditor is forced to repay the debt, then waiting for his result will either flee or commit suicide.
This is why many ordinary people are puzzled when they see buildings and neighborhoods in ruins.
Everyone thinks, such a building, such a good community, can get the money back by selling it anyway. Why does the boss run?
In many things, poverty limits our imagination.
There is no money, there is no money, the hardship, the rich and the rich, the troubles.
Many companies that could be regarded as wealth empires often become debt companies overnight. Most of them are because the capital chain is broken. It can be said that they are defeated and cannot be stopped.
Fang Yadan understands this truth, in fact, in addition to the risk of high prices, any investment also has the risk of market direction.
If it is simply a loss of one or two billion, this foreseeable loss does not seem so fatal if it is diluted to a few years.
But once out
Now that the entire market is declining, it is really not a matter of making more and less profit. If the financial strength is not strong, the family may be ruined.
Fang Yadan was still a little unconvinced: "Since you all know that the land is worth at most 900,000 per mu, the city now sets the bidding price at 1.2 million per mu, then why are you still bidding? Ten million, isn't there the same risk you just mentioned?"
Qin Tian explained: "After all, I was a high-ranking leader who personally invited business. I thought, if there is no competition, I will use the starting price to win. If there is competition, I will only sell at most 1.3 million. "
"After taking the test, Fan Jianming may be angry with me and maliciously raise the price, then I will only pay 1.5 million at most. No matter how much, I am a fool."
Fang's father said at this time, Yadan said, "I heard that I didn't. This is what an expert said. When you met, didn't Zhou Yaping also proposed this price ceiling? And at this price, he took a considerable risk."
Qin Tian went on to explain: "What I mean is very simple. After I have photographed this piece of land, I will go back to find a high-level leader to ask for a policy. After all, the land price of this piece of land is too far from the original value. If the city is not in the policy With support from the above, the project will not succeed."
"The senior leader is one of the new leaders. He wants to make some achievements in this session. If the first project in his hands fails, for him, it is not only my failure, but also affects When it comes to real estate development in Jiangcheng, the price of land in the urban area will probably not rise because of this land, but will continue to decline because of our failure."
"Whether as high-level leaders or related departments in the city, they know this better than us, and we can even say that they don't even want the operation of this piece of land to fail."
Fang Yadan asked at this time: "Since you can ask for policies, what does it matter if the land price is higher?"
Qin Tian smiled and said: "Yadan, this problem of you has gone back again. Everything has a degree, and the policy is the same. Within a certain price, a good policy can help us reduce some losses, but if we spend The sky-high price, let alone us, even if the city develops itself, it will be a mess."
"Then you mean, we don't cooperate anymore?"
(End of this chapter)