"Is that over 38 million his? He still owes the bank more than 500 million!" the man said, unconvinced. "If his 1,000 apartnts aren’t all rented out, or if housing prices suddenly plumt, he wouldn’t be able to cry even if he wanted to."
"What if I told you that nearly all of his 1,000 apartnts are rented out now? Do you still think he’d be so distraught?" Mr. Zhuo said earnestly. "Besides, given the current trend in the real estate market, do you really think a major drop is likely? Let tell you, if he were to sell those apartnts now at the original price of 6,400 per square ter, he would make a profit of almost 2,000 per square ter. And I can confidently tell you that at 6,400 per square ter, even without a discount, they would not be hard to sell at all."
"This has only been a little over three months. At this rate, housing prices might rise even more by the end of the year. Next year, they’re expected to increase by at least ten percent."
"The governnt has significantly reduced the supply of land for construction this year! It’s already a foregone conclusion that housing prices will rise over the next few years. What’s the price of land per square ter now? After two or three years, when these lands are developed and put on the market, what will the starting price per square ter be?"
"By that logic, didn’t you sell at a loss?" the man who looked down on Yi Anguo as a pauper said. "Even if he does succeed and beco wealthy in the future, it’s only because you helped him. Without your help, he’d be a penniless man his whole life, fit only for tightening screws in a factory."
"If you hadn’t helped him, why would the bank lend him money? And a loan of 500 million, at that!"
"That depends on how you look at it," Mr. Zhuo said. "I wouldn’t say it was a loss. At the very least, I was able to quickly recapitalize 500 million in funds, repay my bank loan, and secure an extrely high credit rating with the bank. It’ll be much more convenient to borrow even larger sums in the future."
"While it’s true I helped him, and he couldn’t have possibly bought 1,000 apartnts and secured a five-hundred-million-yuan loan without , I wasn’t just helping him. I was also helping myself."
"Besides, even if I’m willing to help, do you think just anyone has the guts to accept it? Even if I wanted to give soone 1,000 apartnts, do you think just anybody would dare to take them on and owe the bank several hundred million?"
"Isn’t your developnt on sale right now? Why don’t you find so poor kid and have him buy a few hundred apartnts from you? See if he’s willing to take on hundreds or thousands of your apartnts and owe the bank several hundred million."
"As for owing the bank several hundred million, is that even a big deal? How many of the country’s billionaires, those with assets in the tens of billions, don’t owe money to the banks?"
The wealthier a person is, the more they owe the bank. That’s just reality.
Mr. Zhuo’s words left the other man sowhat speechless.
In fact, he was quite envious of Mr. Zhuo for selling 1,000 apartnts in one go, sothing that was practically unheard of. How long would it normally take to sell 1,000 apartnts? Although the market had picked up slightly in the past few months, with prices gradually returning to their original levels and sales volu increasing, you still couldn’t sell a thousand units in less than half a year, maybe even a full year. And as Blue Coast was the most expensive developnt in the Houhai area, selling 1,000 apartnts was no simple task, even with its high sales figures. Even though he had sold them for much cheaper, as long as they were sold, it was impossible to lose money. There was still a profit to be made, just a smaller one. But because he got his capital back so quickly, he was able to acquire another plot of land. The governnt’s supply of developnt land was nowhere near what it used to be; this year’s supply was less than half of last year’s! This ant future land prices would be higher, and future housing prices would be more expensive. By securing a plot of land ahead of ti, he had already earned a fortune.
Yi Anguo quickly arrived at the Marriott Hotel, wearing a pair of cheap leather shoes. He had originally been wearing flip-flops but figured that showing up to a grand hotel in them would be a bit too much. Mainly, he was worried the hotel security might refuse him entry for improper attire, which would have been embarrassing. He wore a very ordinary short-sleeved T-shirt and casual pants, with his entire outfit costing around 200 yuan.
It wasn’t that he intentionally dressed so shabbily; it was just that he had always worn clothes from street stalls, and these leather shoes were his best pair.
Guided by the usher, he t Mr. Zhuo and his two friends. One was surnad Ren, nad Ren Xingsheng, and the other was surnad Ou, nad Ou Xiaolong. Both were in real estate developnt. The one who looked down on Yi Anguo, thinking he was just a poor boy, was Ren Xingsheng, who owned a company called Prosperity Properties. The other, Ou Xiaolong, was also a developer and owned a company called Dragon Rise Properties. All three n were active in the Blue Mountain District. The difference was that Ou Xiaolong and Ren Xingsheng were focused on the Qianhai area.
Currently, property prices in the Qianhai area were generally on par with the Houhai area, though Qianhai was slightly cheaper. The residential complexes developed by Mr. Zhuo’s company were known for their focus on quality and environnt, making them relatively high-end for both the Qianhai and Houhai areas. His prices were also the highest. At present, the public sale price for Blue Coast Phase Three was 6,500 yuan per square ter, with all discounts canceled.
Most properties for sale in Houhai were priced between 5,300 and 6,000 yuan, with a few around 4,800 yuan. Qianhai, on the other hand, had many properties for sale between 4,300 and 5,000 yuan, and quite a few between 5,000 and 6,000 yuan, but almost none were priced over 6,000 yuan. In this era, Qianhai was still a step behind Houhai. However, Qianhai’s properties had great developnt potential, and Houhai wasn’t far behind. Linked together, they ford the comrcial heart of Shenzhen.
"I heard that your 1,000 apartnts are almost all rented out. You can finally relax and just collect the rent each month. Once they’re all leased, you should be making a few hundred thousand a month, right?" Mr. Zhuo asked with a smile, pulling Yi Anguo to sit beside him after making the introductions.
"Not quite. The main issue is that the apartnts are too large and the rent is too high, making them difficult to lease. That’s why I didn’t dare ask for a high price. I’m just hoping to break even, covering the monthly mortgage and managent fees with the rent," Yi Anguo said, shaking his head. "If I had chosen a different developnt where the prices weren’t so high and the layouts weren’t so big—like 60 square ters for a two-bedroom and 80-sothing for a three-bedroom would have been plenty—then they would have definitely rented out easily, and I could have made a profit!"
"You little rascal, taking advantage and still complaining! Do the math. How much did I sell those apartnts to you for, per square ter? Less than 4,260 yuan. You tricked back then. Don’t think I didn’t know; I just didn’t want to argue with you," Zhuo Weidong complained, his face darkening with indignation.
"You think just anyone has the clout to sell you 1,000 apartnts and get a bank loan approved?
"The bank gave you a preferential interest rate on that loan. How much money did that alone save you?
"I even waived a year of managent fees for you, saving you millions.
"I had to pull a lot of strings to get the bank to approve your loan for a thousand apartnts!
"And you have the audacity to stand there and complain that I sold them to you for too much."
"Brother Zhuo, you got taken for a ride? Tell us what happened," Ou Xiaolong asked with an interested smile. Zhuo Weidong was an incredibly shrewd and calculating man. People usually lost out when dealing with him; it was unheard of for him to be on the losing end.
"It’s embarrassing to even talk about. I wasn’t paying attention at the ti. You guys have no idea! This kid spun around in circles with his sches," Zhuo Weidong said with a look of frustration. "Originally, he was to make a down paynt of ten percent of the public price, 6,400 yuan per square ter. For a 100-square-ter unit, that’s 64,000 yuan. But because he was buying so many, I required at least a twenty percent down paynt.
"Then he said he wanted to pay the twenty percent based on the actual transaction price. I thought that was fine, so I agreed. Then the kid says that 6,400 minus the 1,500 yuan cash rebate per square ter makes the actual price 4,900 yuan per square ter, and he’d pay twenty percent of that.
"At the ti, I figured I’d already run the numbers. The original actual transaction price was 4,760 yuan per square ter. Because he bought so many, I gave him another 500-yuan discount per square ter, bringing the final price down to 4,260 yuan. So if he was offering to pay a twenty percent down paynt based on 4,900 yuan per square ter, I was more than happy to agree!
"But lately, the more I think about it, the more I realize sothing is wrong. He was supposed to pay a down paynt of one-tenth of the list price, which is 64,000 yuan. The second tenth of his down paynt, even at the transaction price, would be 42,600 yuan. That adds up to 106,600 yuan. But this kid only paid 98,000 yuan! That ans he shorted 8,600 yuan, which works out to another discount of 86 yuan per square ter that he managed to squeeze out of ."
Reviews
All reviews (0)