Why have so many things been reported in Henan recently?

In the final analysis, it is the end of land finance.

Local government in my country, and local government in Europe and America, the biggest source of income is land.

It's just that we rely on land transfer fees, and they rely on property taxes.

The two are essentially the same. Residents pay to obtain land use rights, and ZF charges to provide residents with better living facilities .

But there is a key difference: the land transfer fee is a one-time payment by new home buyers, accounting for about 70% of the house price, while the property tax in Europe and the United States is paid annually by all residents, accounting for about 1~3% of the property valuation.

This brings 2 problems:

There are a lot of people in China who don't pay taxes, or pay a little bit, and get better living conditions

For example, demolition households, enterprises and institutions, for example, the houses bought for tens of thousands of yuan in the 1990s rose to several million. They hardly bear much tax burden for their living conditions, but they live in higher living conditions because of reincarnation, luck and vision.

For example, in first-tier cities, indigenous people with a monthly salary of several thousand live in tens of millions of school districts. This is impossible in Europe and the United States, because they have long since moved because they cannot afford the property tax. (PS: Only stating facts, not evaluating whether it is good or bad)

The proportion of this part of the residents is actually very high. For example, in your city, there are a considerable proportion of the communities called xx Yuan, xx new villages, xx villages, and so on. I mentioned above.

That said, it's a: Post-buyers pay for all residents . Many low-level indigenous people in big cities, you should thank the new citizens, if you didn't buy a house and pay taxes, how could you enjoy such convenient subways, elevated highways, hospitals, schools...

Precisely because there are fewer taxpayers, and the tax collected cannot be less, the tax base can only be increased indefinitely. Therefore, it will inevitably cause the price of new houses to be incomparably high. Only when they are high enough, can they receive enough tax and can afford the corresponding supporting investment.

This is actually the core reason why Chinese real estate prices do not have to be extremely high.

The land transfer fee is a one-time sale and requires constant new buyers

This is why, local government agencies in my country are very keen to develop various XX new town concepts in the suburbs of cities, such as high-speed rail new towns, Olympic sports new towns, Binjiang new towns, Linhai new towns... (Sometimes I also wonder, Binjiang Linhai is better to say, The scenery is good, what the hell is the high-speed rail Olympics? Your home is close to the high-speed rail Olympics, do you take the high-speed rail every three days to go to the Olympics?

Because the old city cannot be demolished, there is no oil and water to squeeze. No matter how much money I invest, it will only benefit second-hand housing prices. It would be better to allocate resources to the new city. After the land of the new city is taken, I can receive the money to continue to build the new city.

If the urbanization process is accelerating, it will be easy to operate. Every year, the number of people entering the city will inevitably need to buy new houses.

But this kind of pie spread mode will come to an end one day. Those who can enter the city will enter the city early, and those who cannot enter will be squeezed dry, and they will not be able to buy a house in the city.

So the real estate started to thunder.

The reason is that this game can't be played anymore! You can't always expect new people to pay for you, the real estate market will one day enter the stock market.

The problem in Henan, to put it bluntly, is that no one buys a house, which leads to the fact that real estate companies dare not take land.

But the salaries of civil servants have to be paid, urban construction has to be carried out, hospitals and schools have to be repaired, where will the money come from?

They were eyeing the village bank's money.

First, Chengtou borrowed land from a local bank, and the collateral was a real estate project. After receiving the tax, the government continued to build infrastructure and pay civil servants salaries. Due to well-known reasons, the houses developed by Chengtou are generally of high price and of poor quality. In addition, the general environment is generally not good, and the houses cannot be sold. Therefore, one by one, the real estate began to be unfinished and thunderstorms.

When they can't pay back the money, it's when the village bank is in a storm.

So you will see that first the real estate is generally unfinished, and then the local bank thunders, which are all linked together.

This is also the reason why real estate projects in Zhengzhou and other Henan cities are generally unfinished, and after a few years, the village banks began to thunder.

As for what Yu Mou, 40 billion is easily taken out of the country, do you believe it?

Set up a shell company and illegally absorb storage in a village bank for more than ten years. Do you believe it?

I believe that this incident in Henan will not only happen in Henan.

For example, in Suzhou, where I am located, more than 90% of the land auctions in the first half of this year were made by urban investors at the reserve price. State-owned enterprises are rare, and private enterprises are almost extinct.

This is the case in Suzhou. Perhaps in the near future, thunderstorms will spread all over the country.