First, on February 13, Evergrande introduced an 88-day lock-in purchase policy. Buyers fancy a certain source of suites in Evergrande. They only need to pay a 5000 yuan deposit online on the “Hengfangtong” platform and sign the “Commercial Housing Online Subscription” to book a listing.

Customers who sign an online subscription book and lock a set of properties for 5,000 yuan enjoy too many benefits:

1. 5000 yuan means 20,000 yuan for the total housing payment;
2. If you recommend someone to buy a house successfully, you can get a 1% commission bonus plus 10,000 yuan bonus, and 5,000 yuan refund at the same time;
3. If the locked house is seen by others and paid the down payment in advance, the subscription fee of 5000 will be refunded and the compensation will be 5,000 yuan;
4. If the house locked before May 10th is not sold successfully, the 5000 yuan subscription fee will be returned unconditionally;
5. Each recommended new subscription customer will be rewarded with 100 yuan, up to 500 yuan.

This series of reward clauses have caused many people to be dazzled by happiness and shouted that the opportunity for taking advantage is coming!

Is Boss Xu’s wool so easy to get?

First of all, a deposit of 5,000 to 20,000 is a common routine for developers, and it is not unusual.

Secondly, Helping Evergrande to sell a house for 1 point plus 10,000, it sounds a lot. In fact, if a developer uses a secondary distribution agency to sell a house, a set of commissions starts from at least 3 points. Such a comparison, national marketing is really too cost-effective.

Thirdly, the locked house was bought by others first, and the compensation was 5,000. Many people want this benefit.

But in fact, once the listing at the sales office is locked, it will not be released again unless it is difficult to find a house for sale. If you want to earn 5,000 yuan, it will be quite difficult.

Finally, before May 10th, if this house was not bought by others and you did not buy it, 5000 yuan will be returned to you.

It sounds like money can be withdrawn, not bad! However, if the money is not refunded, will you make a decision? Most people are rushing to fleece the wool, not to buy a house. Moreover, this 5000 yuan was turned over by Evergrande for 88 days with no interest.

On February 16th, Xuefei Liu, vice president of Evergrande Group, announced at a press conference that since the “online purchase of houses” on February 13, various sales data have shown explosive growth, and customers subscribed for 47540 houses.

I figured it out, there were 47,540 units with a subscription of 5,000 yuan each, and the total subscription money reached 237.7 million yuan, with interest-free use for three months.

What is the current cost of issuing debt to Evergrande?

From January 16th to 21st, Evergrande entered into purchase agreements with Credit Suisse, Bank of America Securities, BNP Paribas, CCB International, and UBS, etc. Evergrande will issue four senior notes totaling $ 6 billion, expire in 2022, 2023 and 2024 respectively, with interest rates ranging from 11.5% to 12%.

In other words, Evergrande’s recent borrowing cost is 12%.

The subscription fee of RMB 237.7 million is an annual interest rate of 28.25 million yuan at an interest rate of 12 points. The 88-day interest cost is 6.87 million yuan.

Of course, the 6.87 million is just a little for Evergrande, but since it’s free, why not use it?

Besides, Evergrande’s massive operation, the subscription is only an appetizer, the really good show is behind.

On the afternoon of Feb. 16th, the huge preferential red-headed documents issued by Jiayin Xu were circulating on the Internet.

From February 18 to February 29, 2020, Evergrande’s residential properties (including apartments and office buildings) for sale can enjoy a 25% discount.

On the basis of the 25% discount, Evergrande has also superimposed a series of dazzling discounts, 7% off, one-time payment, a single building with a removal rate of 80% or more, and an additional 3% discount, etc. It is said that the minimum can reach 64%.

If this type of jump-off discount is selling health products and god oil, I believe, if it is selling a house, it would be incredible.

According to Evergrande’s financial report for the first half of 2019, revenue in the first half of the year was 226.98 billion yuan, net profit was 27.06 billion yuan, and profit margin was 11.9%.

Evergrande worked hard for a year, earning 12% of its profits, and boss Xu made a big splash, giving 25% of the profit and 13% of the net loss.

Moreover, 13% is a starting loss and a minimum of 64% off with a 24% loss.

The account here is a bit wrong. The boss Xu is selling a house, not for charity.

Moving forward, we finally found out that Evergrande was the most passionate developer that enjoying discounts in China.

Starting from 2016, the discount rate is from 90% to 88%, to 87%, to 82%, and then to 78%. The discounts are endless, there is no maximum, only greater.

Evergrande’s discount routine is very similar. Release a bright discount first, then stack some other discounts, at last, check out without reason.

After a careful comparison, you will find that this discount activity is nothing new. It is a replica of Evergrande’s discount routine for many years. But this time, Evergrande’s old bottled new wine has achieved great success, thanks to four points:

First, the discount fell to a new low and became 25% off;

Second, start running in advance during the epidemic, earning enough attention;

Third, add a plot, and a warm-up activity of 5,000 yuan locked in advance, making the process a twist and turn, more beautiful;

Fourth, spend a lot of money to make a large wave of promotion.

The most critical question is the average profit rate of 15 points in the real estate industry.

Why does Evergrande dare to hit 30% or 20%off?

The reason lies in Evergrande’s project layout.

Evergrande has more than 1,200 projects in China, most of which are located in third and fourth-tier cities. Evergrande is similar to Country Garden. They are keen to racehorses on the third and fourth-tier cities and adopt a strategy of surrounding the city by the countryside.

This aspect reflects Evergrande’s development strategy, focusing on the third and fourth lines, but not the first and second lines.

The cost of land acquisition in the first and second lines is high and the profit is low. There is basically no need to worry about losing money, which is conducive to improving brand reputation.

Taking land on the third and fourth lines, especially in the suburbs of the third and fourth lines, is a low cost, high profit, and high risk.

The third and fourth lines have high requirements for the project’s operational capacity and operating cycle. If the time node is met and the project is publicized, a project can make a huge profit; if the site is not selected properly or the timing is wrong, the mire will sink. The project has been sold for five or eight years but still has a lot of inventory.

In addition, there is considerable room for flexibility in the filing prices of the third and fourth-tier projects. In particular, the third and fourth-tier suburbs lack real estate for benchmarking projects, and the price is very arbitrary. You only need to report a relatively high filing price in the early stage. After the government approves it, you can make advances and retreats, discounts and concessions.

Evergrande has a lot of real estate on the third and fourth lines. The normal discount for visiting is very scary. The house with a registered price of 10,000 can be sold to you after being discounted by more than 8,000 or even less.

When Evergrande conducts activities nationwide, all sales offices will recover the usual activity discounts and follow the discounts set by the headquarters. They are all selling houses at a discount, and there are unified promotion and endorsement by the headquarters.

Seeing here, if there is still unwillingness, you must get Evergrande’s wool, saying that I do not buy a house in third and fourth cities, I buy a house in front and second cities. The front-line houses are clearly marked with real prices. The record price is under pressure from the government and can’t be overstated, the sales office can’t usually discount that.

Then you are really naive. Evergrande doesn’t pay attention to the first-tier cities, that’s not just fun. There is only one Evergrande in Beijing that has an end-sale for a total price of 30 million. Shenzhen has no Evergrande houses for sale, only a few apartments; Shanghai has no Evergrande properties for sale.

If you are still not willing to say that there are many second-tier cities, sorry, in the “No Reason to Check Out Agreement” published by Hengfangtong, there is a line of small characters hidden at the bottom, you can see with a magnifying glass: Some properties are not participating in the offer.

So, if you want to get boss Xu’s wool and buy a good house with a 25% discount in the first and second-tier cities, isn’t your brain broken?

Finally, I have to say something fair to Evergrande.

Although Evergrande’s discount activities have lasted for many years, various discounts are not new. However, the 25% discount this time is indeed the lowest discount in history. If the record price remains unchanged, it is indeed a great discount to give 3 points more than the previous lowest discount of 78%.

There are so many real estate projects in Evergrande across the country, especially those in the 3rd and 4th lines, and there are still houses worth buying.

For example, there is just one apartment in Shenzhen, Evergrande Fashion Valley, also participated in this event. This real estate is located in Longhua. The unit price is not high at only 30,000, and after the one-time 25% discount is only 22,200. The profit margin is very large. As far as I know, many of Evergrande’s internal employees have subscribed.

In 2019, Evergrande’s annual sales are 601.06 billion, and its mission in 2020 is 650 billion.

In January 2020, Evergrande achieved sales of 40.55 billion yuan, compared with the annual task of 650 billion, only 1/16 is completed. In February, the coronavirus epidemic broke out, and Evergrande’s stock fell all the way.

For Evergrande, running high-profile in advance is not only to strive to complete the annual sales task but also because companies like Evergrande rely heavily on high turnover and cash flow.

At present, Evergrande’s activities have been quite successful. During the quiet special period of the housing enterprises, Evergrande fired its first shot!

Although the profits have been diluted, it has earned enough attention, raised the stock price, cleared a number of third and fourth-tier houses, and won time and cash flow.

The post 25%! The Most Discounted Chinese Real Estate Company appeared first on Rabbit Says.

According to incomplete statistics, in recent days, more than 10 provinces and cities, including Wuxi, Shanghai, Tianjin, and Nanjing, have issued various support policies related to real estate, and policy loosening is expected to appear.

Historical similarities are always reminiscent. Although the whole country is still shrouded in the haze of the COVID-19, the “explosive growth” of the property market after the end of the SARS epidemic in 2003 has caused some people to worry. Are we back on the old track of “stimulating real estate to boost the economy”?

I have to say that this conclusion is probably too early and too hasty.

“Hardcore” rescue measures have not yet appeared, first, look at the assistance policies that have been introduced in various places.

Wuxi City, Jiangsu Province, issued 17 policies and measures to support real estate companies and construction companies in a number of ways, including relaxing pre-sale conditions, ensuring liquidity, tax deductions, and allowing deferred payment of land transfer prices.

Wuxi City stipulates that if the building within the scope of which a construction permit has been obtained due to the epidemic situation, it shall be adjusted to the investment amount when applying for pre-sale, and the pre-sale part may complete more than 25% of the investment. You can apply for a delay inland delivery and payment of the transfer fee, which can be processed within 5 working days at the latest after the first-level response measures for epidemic prevention and control in Wuxi City are lifted.

For another example, Xi’an, aimed at the land market to reduce the burden on real estate companies.

Xi’an stipulates that during the epidemic prevention and control period, in principle, the newly-sold land may be determined with bidding security of 20% of the starting price, and 50% of the land transfer price shall be paid within one month after the signing of the transfer contract. Pay in installments as stipulated in the contract, and the payment period shall not exceed one year.

The Shanghai Municipal Planning and Natural Resources Bureau has also issued a land-use support policy to adjust the payment method and duration of land prices.

According to the Shanghai New Deal, affected by the epidemic, failure to pay the land price and delivery of land as stipulated in the land transfer contract is not a breach of contract, excluding late fees and liquidated damages, and the assignee may apply for deferred payment or installment payment.

In Zhejiang Province, restrictions on the use of pre-sale funds for commercial housing have been relaxed to some extent.

Zhejiang stipulates that the pre-sale funds for commercial housing during the epidemic prevention and control period can be used to increase the initial costs of construction, management, sales, financial and other expenses from 20% to 30% of the total. For residential projects completed and accepted before June 30, 2020, residential property warranty payments can be postponed for 3 months.

In Nanchang, it is allowed to postpone the signing of the transaction confirmation and the transfer contract during the land transfer, allow the extension of the payment of the transfer fee, allow the extension of completion and the adjustment of the land transfer bidding security deposit ratio, etc.

Shenzhen has continuously issued a new policy for housing provident funds. On the one hand, companies with difficulties in the impact of the epidemic will be supported in the provident fund deposit ratio and time limit; on the other hand, it is stipulated that hospitalization or quarantine of new coronavirus pneumonia can apply for an extension of public funds. Loan terms, relaxation of deposit requirements for public loan applications, etc.

At present, local policies are relatively prudent. The main focus is on bail-outs for housing companies, alleviating corporate liquidity pressures, and reducing defaults on delivery. The “restrictions on purchases”, “restrictions on loans”. Core control policies such as mortgage rates are rarely involved.

In terms of policy intensity, local policies are still small adjustments based on city policies, and they have not broken the red line of “The house is used to live, not for property speculation.”

The post Easy Policies, China Stimulates Real Estate Market to Boost Economy appeared first on Rabbit Says.

Let’s talk about how to make the small living room beautiful, rather than pretending it as a spotless hotel lobby, that’s not home or life.

Carpets are now easy to find in-home stores such as IKEA, and they have a variety of styles, including oriental style, modern abstraction, and so on.

But no matter what style, be sure to keep in mind: Never spread the carpet all over the living room floor!

If you want to make the photo wall look modern, you should try to hang it asymmetrically (as shown above).

The number of frames on the photo wall, odd is always better than even.

↑ Don’t ask why. It is said that this is a world mystery that many senior designers cannot explain.

If the living room at home is cramped, and there are no windows and usually not many visitors, you can make it like this.

Such as the warm wood tones above!

However, the dark color of a full house is absolutely impossible. The catastrophic consequences are as follows.

If your living room is small, you must buy such storage furniture.

Sofa + long table + mirror, common methods to enhance the style of the living room.

But there are three points in this design that you must pay attention, otherwise, it becomes more ugly:
1. The long table and sofa should be next to each other;
2. The height of the long table cannot be higher than the sofa back;
3. Be sure to put a lamp on the table, and not just one; if there is no lamp, you can put a high candlestick.

The post The Best 6 Practical Ideas for Small Living Room appeared first on Rabbit Says.