Nowadays, people have two main views on real estate, one is that real estate is a vampire, because many people now have to empty the wallets of several people in order to buy a house, and they have to carry decades of debt, so real estate is like a vampire.
Another point of view is that real estate is actually a gold-spling monster, is the anchor of our country's credit currency issuance, because through the real estate issued a large amount of money, the social circulation of more money, so in the past 20 years, our country's economy has been able to maintain high-speed development, people's income will increase, so real estate should be a gold-sprinkled monster.
So, is Real Estate a vampire or a gold-sprinkled monster?
Hello everyone, I am a real estate practitioner in Qingdao for more than 10 years, and I like to post some ** related to Qingdao property market or real estate in my spare time, I hope you can like it.
In fact, if we look at it dialectically, there is no problem with these two views, there is no right or wrong, but the starting point is different. The first point of view, that real estate is a vampire, mainly from the perspective of home buyers as a starting point, many families in order to buy a house, is indeed empty of a few people's wallets, but also saddled with decades of debt, this is an unavoidable problem, in addition to many ordinary families because of the purchase of a house occupies a lot of family funds to pay the down payment and repay the loan have to tighten their clothing, but also reduce other aspects of consumption, in addition, many people buy a house originally to live, but because of the house price** also made money, so he invested more money in real estate, thus reducing the investment in other aspects, so from three points, it is understandable to say that real estate is a vampire.
The second point of view is very high, from the essence of the development of our country's real estate market, economic development and credit currency issuance as a starting point, and then confirmed that real estate is a monster that sprinkles gold to the society, through real estate to the society issued a large amount of funds, and then these funds into all walks of life circulation, promote the rapid development of all walks of life, but also promote the development of the national economy.
The process of creating currency through real estate is like this, a piece of land is not in the market before it is bought and sold, in fact, it has no value, the local ** through urban planning, the land is divided into residential land, commercial land, industrial land, etc., and then build some supporting facilities, and then put up for auction, at this time the land has value, but I think that the value at this time is created out of thin air, and there is no actual use value.
When the land has the value that has been created, let's say it is worth 100 million, and then it is bought by the real estate developer. The developer used the land as collateral and borrowed a sum of money from the bank, although no value was created at this time, but there was already a sum of money from the bank into social circulation, which was the process of credit money being created for the first timeWhen commercial housing is built on the land, the common people buy the house with a small down payment and bank loans through loans, and this part of the loan is the process of the second creation of credit money.
So a piece of land worth 100 million eventually turned into a house worth 500 million plus a bank loan of 300 million, and in this way it changed from 100 million to 8 billion. In the whole process, real estate acts as a medium for banks, casting a huge amount of money into social circulation into society, and this money enters all walks of life. For example: the developer takes out a loan from the bank, and then pays the project money and material costs, and then the project pays the wages, and the workers get the wages and then go to consumption, the money flow is active, when the real estate development is faster, the more money in the society, the more money, the easier it is to make money, so the wages have risen, the living standard has also improved, and the economy has developed faster and faster, this process is through the process of throwing money to the society through real estate, so it is no problem to say that real estate is a monster that sprinkles gold.
I don't know if you are like me, you have had such a question, in the past, I often heard that the country was also short of money, so I thought why the country was short of money!Isn't the money printed by the state?If you are short of money, just print it directly!It wasn't until I grew up that I realized that the country could not print as much money as the country wanted, because if the money was printed too much, it would lead to very serious inflation.
And the money printed by the ** bank is not directly able to enter the social circulation, so let's talk about it in 2023!The state also issued a large amount of money, but this money did not enter the society to circulate, because it is one thing to issue money, and it is another thing to enter the social circulation. Money needs a medium from the bank to the social circulation, this medium can be an individual, it can be a business, because now the real estate market is sluggish, there are fewer people buying houses, and the scale of real estate development has been greatly reduced, so the way to throw money to the society through real estate is not feasible.
In fact, now looking back on the past 20 years, the reason why our country's economy has been able to maintain rapid development is inseparable from the rapid development of real estate, because after our reform and opening up, the development of all walks of life is most lacking is capital, and then through the agricultural scissors to support the development of industrialization is no longer feasible, so there is the rapid development of real estate, through the real estate to the society to issue a large amount of currency, for the development of other walks of life to provide financial support.
So whether it is right to say that real estate is a vampire or that real estate is a gold-sucking monster, depending on what perspective, we can hate the high housing prices of real estate and the decades of mortgages forced to be saddled because of high housing prices, but we cannot deny the contribution of real estate to our country's economic development and the enhancement of comprehensive national strength.