18 Reasons to Buy a Shop Now
1. High return on investment: Lower deposit interest rates will cause assets to shrink.
Due to the long-term low bank deposit interest rates, prices are constantly rising, inflation is inevitable (money becomes less and less valuable), and there is no other way to hedge against currency depreciation. Then the preservation and appreciation of currency can only be achieved by purchasing fixed assets such as shops.
2. Flexible investment: Buying a shop has far more advantages than buying luxury goods such as gold.
Compared with investing in gold jewelry, firstly, mass-shopping stores can identify the quality of the store, but when buying gold jewelry, it is difficult to distinguish between genuine and fake, and keeping the gold is troublesome; secondly, the store has a wide range of Not only is its use value constantly appreciating, but it can also be operated independently or leased. Gold is just a luxury consumer product, and as far as the current gold market is concerned, the international gold price has reached a relatively high level and is about to undergo a correction process. If you buy gold now, you may be trapped. Under the pressure of inflation, buying a shop is the only sure way to maintain and increase the value of your assets.
3. Low investment risk: The stock market is highly variable and requires a lot of effort.
Investing in a store can enjoy the benefits brought by the appreciation of its assets without affecting daily life and work. Stock trading and fund buying have to be watched every day, always paying attention, for fear of falling, which is tiring and laborious; if it rises, it is okay, but once it is trapped, the whole family will be implicated, which makes people physically and mentally exhausted. Especially in the recent period, the stock market has plummeted, and many investors have been complaining. After having personal experiences, they have withdrawn from the stock market and bought real estate instead. At least the house can be seen and touched, and is a real thing. Not to mention that the shops can also bring double benefits. They can collect rent every year and the rent is much higher than bank interest (the rent of shops can reach 5%-10% per year). % or even as high as 20%), and as rents rise, shops are also increasing in value.
4. Shops are durable goods with high stability.
The service life of a shop is more than several decades. If you buy a shop, not only will the price not drop, but it will also be more valuable. For a fixed asset with a higher value such as a shop, people tend to buy up rather than down. It costs hundreds of thousands of dollars to buy a shop, but the money has not disappeared, it has just been converted from banknotes into fixed assets. When you need money, you can get generous rent every year or sell the shop, and the money will come back. . People who buy shops complain that house prices are too high, but in fact they hope that house prices will continue to rise after buying a house.
5. The older a shop is, the more valuable it is.
Second-hand residential houses will be cheaper than new residential houses in the same location when sold, because there is a depreciation factor in second-hand houses. This is not the case for shops. Generally, a mature business district requires a cultivation period of two to three years. Once the business district matures, the rent of the shops will increase year by year, and the shops will become more and more valuable, so there are no second-hand houses in the shops. An argument for depreciation is required. In addition, the second-hand housing market is dominated by residential properties, and there are very few second-hand shops. Because they are already mature shops, few people are willing to sell them, so the older the shops are, the more valuable they are.
6. Mature shops have a convergence effect.
The business district of mature shops has a strong aggregation effect. The problem can be explained from two aspects: 1. Operators. A mature business district will attract strong popularity. Although the rent of shops is relatively high, it will still attract operators from all walks of life to operate it, making this business district more and more prosperous. 2. Consumers. The more merchants there are and the more popular the business district is, the more consumers like to gather together for consumption. Through this aggregation effect, they integrate and promote each other, making the business district and shops more and more prosperous.
7. The increase in rent ensures long-term benefits from rent.
As the shops mature, the rent will increase year by year. At the same time, the business district composed of many shops is becoming more and more mature. The annual rent of mature shops can reach 5%-10% or even as high as 20%, which is much higher. As for the rent of residential buildings (1%-3%), the investment cost can be recovered by renting in 5-10 years. As the rent increases, the value of shops is also increasing.
8. Shop rent can be used as a source of pension, travel, or education expenses for children.
As a stable investment product, shops can continue to provide investors with considerable cash flow every year as rents continue to increase. Such a continuous stream of cash every year can be used for the education expenses of the investor's children, and can also be used as a stable financial guarantee for retirement and travel when the investor is old, solving the worries of many investors.
9. One shop supports three generations.
A good shop can not only enjoy generous rents, but can also be passed down from generation to generation like a family heirloom. Because the older a shop is, the more valuable it is. The longer the time, the higher the rent, and the price of the shop will also rise with the rent. What is left to future generations is a money tree and an inexhaustible cornucopia of wealth.
From the perspective of many real estate investors, the so-called "one shop can support three generations" means that shop investment has the following advantages:
(1) Investing in shops is stable and has low risks.
(2) The investment price of shops will not be reduced due to the increase in age. On the contrary, good shops will continue to appreciate in value as the business district matures.
(3) Shops have a high rate of return, which is 5 percentage points higher than that of residential buildings on average.
(4) Shops have investment potential. At present, in China, the concept of shop investment has not yet been fully popularized, and there is still a lot of room for prices.
10. Shops in prime locations (such as city centers) have the characteristics of uniqueness, scarcity, and non-replicability.
Each city has its own commercial coordinates, such as Wangfujing in Beijing, Nanjing Road in Shanghai, Zhongshan Road and Beijing Road in Guangzhou, Old Street in Shenzhen, Xinjiekou in Nanjing, and Gulou Street in Taixing . They are all ancient central business districts in the city. No matter how things change and the business districts change, the shops here are always happily making money. Even though store resale prices and rental prices are rising year by year, countless businesses are still fighting for their scalps just to have a place here. Once the shops in these prime locations are built and sold out, they will be gone. Although the prices in other locations are low, they still cannot replace the shops in prime locations. Therefore, shops in prime locations have the characteristics of uniqueness, scarcity, and non-replicability.
11. There is currently no better investment channel.
The current domestic investment channels include: bank deposits, stock market, futures, funds, gold, collectibles, and real estate.
Bank deposit interest rates have remained very low recently. With the CPI index exceeding 3%, the era of negative interest rates in China has arrived. As prices continue to rise, inflation will inevitably come. Deposits in banks funds will shrink more and more.
The stock market, futures, and funds are very risky, especially in recent times, when the market has plummeted, causing great losses to many investors.
Gold is just a luxury consumer product, and as far as the current gold market is concerned, the international gold price has reached a relatively high level and is about to undergo a correction. If you buy gold now, you may be trapped.
Collectibles require investors to have a strong professional vision, because this market is a mixed bag, and you will be deceived if you are not careful. Spending a lot of money to buy back a worthless fake will cause you a lot of harm. losses.
Real estate is an investment product that is generally believed to be able to resist inflation. In particular, good commercial real estate can maintain and increase the value of your assets. This is why more and more people are investing in commercial real estate recently.
12. The current national policy controls residential buildings, not shops.
At the beginning of 2010, the central government successively issued a series of policies and measures to regulate the real estate market, from the "National Four", "National 11", "National 19", to the latest "New National Ten" " and the Beijing version of the "Beijing 11". With the intensive release of national macro-control policies, the wait-and-see sentiment in the property market has intensified, and residential housing sales have dropped to freezing point. The current purpose of the state's regulation of the housing market is to squeeze out a large number of investments and speculators from the residential housing market, bring the price of residential housing back to rationality, and realize the goal of "home ownership" for the common people. Commercial real estate is not within the scope of this policy control.
13. A large number of real estate speculators have abandoned their homes and switched to commercial real estate, and there is huge room for appreciation in the value of shops.
This time the state’s regulation of the real estate market is mainly aimed at residential housing. The purpose is to use tight bank credit and strict tax policies to crack down on real estate speculators who invest heavily in, speculate on, and speculate on residential properties. They squeezed out the housing market and returned housing prices to a rational state. At present, the national new real estate policy has achieved initial results after one month of implementation. A large number of real estate speculators have given up on the residential real estate market and turned their attention to shops that are less affected by the national real estate control policies and have stable rental returns. It is particularly worth noting that the Wenzhou real estate speculators, known as the "wind vane" of the real estate market, have withdrawn from the residential market on a large scale and are purchasing a large number of shops. Therefore, the price and value of commercial real estate will increase greatly in the future. of space.
14. The current value of shops is underestimated, and there is a stage of making up for the increase.
Nearly half of investors believe that commercial real estate is moderately undervalued compared to residential properties. Currently, there is a problem of price inversion in residential and commercial properties, which is also determined by the overall market environment. In the past few years, investors have focused on housing speculation, which has caused residential housing prices to rise significantly. Although shops have also increased in recent years, the price increase has been much smaller than that of housing.
After the new housing reform policy comes out, there should be a very good promotion for the future price increase of shops, because the market development gradually tends to be standardized, the operation of shops, the operation of shops and the operation of commercial real estate. Policies have also given good support, so there must be room for increases in commercial real estate prices and values ??in the future.
15. A shop is a means of production and an investment product.
The real estate industry is divided into two parts: residential real estate and commercial real estate.
Residential real estate is a means of living and a consumer product. In recent years, especially in 2009, the price of commercial housing in some cities has risen rapidly, making it increasingly difficult for ordinary residents to purchase houses. At the same time, there are many unreasonable and imperfect aspects in land supply, residential development, sales and other links. As a result, voices in society questioning and criticizing the marketization of housing have become louder and louder. The demand for investment and speculation in housing pushes up housing prices, which will inhibit and deprive people of their right to own a home. At this time, the government needs to step in to regulate the housing market, regulate housing prices to a reasonable price, and realize "home ownership". "Everyone has a home" goal.
Shops are means of production rather than means of consumption, which are completely different from residences. A shop is an investment product, and the ownership of the means of production is generally ranked by big capitalists, large enterprises, small and medium-sized enterprises, and small producers. At present, it has become a trend for large investors to occupy this part of the market, and as the real estate market matures, developers will also tend to "hold" shops, that is, only rent but not sell, and the opportunities for small and medium investors will become more and more important in the future. Come less and less.
16. At present, many large domestic developers have switched to commercial real estate.
Since the end of last year, many large developers have begun to focus on commercial real estate. In order to catch up with the "honeymoon period" of commercial real estate, well-known residential developers including Vanke, China Resources, Beijing Capital, and Hopson have stepped up the pace of "enclosing land" to lay out commercial complexes across the country.
At the beginning of 2010, the central government issued a series of policies and measures to regulate the real estate market, and the wait-and-see sentiment in the property market began to intensify. However, brand real estate developers such as CapitaLand, Vanke, Greenland, and Poly Real Estate have bucked the market trend and started bargain-hunting commercial real estate. According to reports, it is estimated that the capital involved in "buying the dip" is at least 100 billion yuan.
With the housing market bubble on the verge of exploding, the scarcity and yield of commercial real estate and other benefits have clearly emerged. This seems to be a signal: commercial real estate is receiving more and more attention, the phenomenon of commercial and residential inversion is about to disappear, and the spring of commercial real estate is approaching. For the majority of shop investment enthusiasts, compared with the high-performance residential market, commercial real estate that is still in its infancy has to be said to be an excellent investment opportunity.
17. There will be less and less land available for commercial real estate development.
Our country’s national situation is that there are more people and less land. We need to use limited arable land to feed a population of 1.3 billion. Therefore, 1.8 billion acres of arable land is the country’s red line for land control. Every year, the country will have strict regulations on the land available for development. Control land use indicators.
The entire land use index this year is basically the same as last year. However, in order to achieve the goal of "home ownership" for the people, the country has increased the proportion of land used for residential housing construction. In particular, the land use index for the construction of affordable housing has increased. has greatly improved, which has squeezed out the land development indicators of commercial real estate. Moreover, the country's land policy will continue in the next few years, which will result in less and less land available for commercial real estate development.
18. A lot of hot money in the market has poured into commercial real estate.
In China, at the beginning of this year, the central government successively issued a series of policies and measures to regulate the real estate market, from the "National Four", "National 11", "National 19", to the recent "New "National Ten Measures" and Beijing's version of "Beijing's 11 Measures". With the intensive release of national macro-control policies, a large number of real estate speculators who invested and speculated in residential real estate have left the residential real estate market and poured into the commercial real estate market. Currently, a large number of of purchased shops.
Internationally, due to the outbreak of the subprime mortgage crisis in the United States and the debt crisis in Europe, the international investment environment has deteriorated, and a large amount of overseas hot money is looking for new outlets. In recent years, international calls and expectations for the appreciation of China's RMB have become increasingly louder. International investors with a keen sense of smell have invested overseas hot money in China, especially in my country's real estate industry. There are increasing signs of foreign funds entering China's commercial real estate. It is becoming more and more obvious that, unlike the earlier "go it alone" approach, they have begun to cooperate with domestic business giants.
A few days ago, an authoritative source revealed to the "Daily Economic News" that Canada's Ivanhoe Cambridge Company has officially invested in some of Bailian Group's commercial projects. Ivanhoe Cambridge has been looking for cooperation projects in first- and second-tier cities across the country since the end of last year. Cooperation with Bailian is also an important step in achieving "grounded" investment, with 500 million shares invested in Bailian projects. There will be more and more international cooperation like this in the future.