lcionline Chapter 723 Can afford it, can’t afford it
Chapter 723 Can afford it, can’t afford it
Su Yao was somewhat delighted by Lu Ye's flattery.
"You came here for something?"
"Go ahead."
Although Lu Ye lived in their house, he rarely entered this study.
Every time Lu Ye came in on his own initiative, there was something going on.
Su Yao had already figured out that Lu Ye did that on purpose to avoid suspicion.
After all, Su Yao held a high position in the government, and he would often bring back some government documents to study in his study.
Hearing Su Yao say this, Lu Ye stopped laughing.
He immediately said seriously, "Uncle, Binjiang's housing reform policy has begun to be implemented. I wonder what you think of the future of Binjiang's real estate industry?"
Lu Ye's question seemed easy, but it actually hit the nail on the head.
As a pilot city for national housing reform, Binjiang has attracted the attention of everyone in the country.
As the main leader in Binjiang's housing reform work, Su Yao naturally felt a lot of pressure.
It is said that reform is like crossing a river by feeling the stones, but what Su Yao is doing at this time is no different from swimming blindly along the Yangtze River.
It was pitch black in front of me, and I couldn't find any reference points at all.
In order to do his job well and find some experience and materials, Su Yao also read all the books on real estate in these developed countries.
However, due to the huge differences in political systems, Su Yao could only find very few cases to learn from.
Now, facing Lu Ye’s problem.
To be honest, Su Yao couldn't give an answer that would satisfy him.
The smile on his face disappeared, replaced by a blank expression of uncertainty about the unknown:
"To be honest, I really don't have an answer to your question right now."
"Others say reform is like crossing a river by feeling the stones, but in my opinion, reform is innovation. It is based on the old model to create a new one that is more conducive to economic development and better able to solve people's livelihood problems."
"Binjiang is a pilot city for housing reform, and we are the vanguard. How we do it, whether it's right or wrong, all depends on us. There is almost no experience to follow."
“You just asked me what I think about the future development of real estate.”
"From a positive perspective, I believe Binjiang has outstanding people and a strong industrial base, so its real estate is very likely to flourish in the future."
"However, on the negative side, I also have my own concerns."
When Su Yao said this, he looked worried.
"What are you worried about?" Lu Ye asked.
Su Yao looked at Lu Ye, stretched out his hand, and said softly, "The four most important things in ordinary people's lives are clothing, food, housing, and transportation."
"Twenty years ago, there was this saying: 'Three years new, three years old, three years patched up, three years old.' But looking at all the developed countries in the world, not a single one is frugal. They're more about consumption."
"Why?" Su Yao asked.
Lu Ye subconsciously answered directly, "Because only consumption can make money flow. Factories need to sell their products to make a profit in order to support their employees. The country needs consumption to generate tax revenue to develop infrastructure. With a good infrastructure, people's lives will become more convenient."
"In general, this is a cycle. Only when money keeps flowing in this cycle can a stable social and economic system be formed."
"Rapid economic development, job creation, and factory survival all depend on the liquidity of money."
Lu Ye's answer made Su Yao's eyes light up.
Su Yao has always believed that Lu Ye is a very smart and capable young man.
However, I didn't expect that Lu Ye had such a thorough understanding of economics.
In just one sentence, it clearly explains the importance of promoting consumption to a country's economic development.
"You're absolutely right, that's it."
"The same is true for food. Our traditional planned economy can no longer meet the needs of national development and the people's ever-increasing consumption needs. From not having enough to eat before to not having enough to eat now, people are hoping for change. We are now in the process of transitioning from a planned economy to a market economy."
"Now when we talk about housing, the separation of real estate and housing is also closely related to economic development. Transaction taxes, land appreciation, and people's demand for housing can easily lead to a rapid rise in housing prices, and even a bubble..."
Su Yao saw the term "real estate bubble" in a book.
By drawing full attention to the real estate economic cases of the United States and Japan, Su Yao has seen the harm brought about by the rapid development of real estate and excessive rise in housing prices.
This is also the issue that Su Yao is most worried about at the moment.
Fortunately, China's real estate has not been fully developed yet. Although Binjiang has just announced its policies, it is still a newly hatched chick and is far from the so-called real estate bubble.
Lu Ye didn't expect that Su Yao could see so far.
For Lu Ye, it is better that Su Yao has a longer-term vision and a deeper understanding, as this will make communication more efficient.
"Uncle, in my opinion, the so-called real estate should actually be divided into two categories," Lu Ye said.
"Oh?" Su Yao showed some interest. "Tell me, which two categories are they?"
Lu Ye immediately said: "It's about what ordinary people can afford to live in and what ordinary people can't afford to live in."
"Throughout Chinese history, there are many examples like this: A thousand gold pieces are easy to acquire, but a house is hard to find; even if one were to spend all his wealth, he could not buy a single inch of painted beams; and the common people toil all year round, yet are not worth a single tile on the eaves."
"Isn't this what we're talking about a house?"
"Regardless of the system of a country, urban development inevitably follows the law of commercialization of the city center, relocation of factories, and construction of residential areas around commercial centers."
"In the process of economic development, wealth will gradually shift to a small number of people, gradually forming two strata of rich and poor."
"Rich people pursue high-quality housing, while poor people just want a roof over their heads."
"This is a reflection of history in the present and an inevitable result of development. It cannot be changed by the will of any one person."
"So I think there's only two types of housing: affordable and unaffordable."
Su Yao listened carefully to Lu Ye's words throughout the whole process and analyzed them in detail in his mind.
Houses are expensive in Chang'an, and every inch of land is worth gold. A thatched cottage in the suburban village outside the city is not worth ten cents.
When it comes to houses, there is really only a difference between being able to afford one and being unable to afford one.
"What you said makes sense, but this is also what I'm worried about. After the housing reform, houses can be listed and traded, and housing prices will inevitably rise. Ordinary people already have no houses to live in, and in the future they will be even more unable to afford them. Isn't this..."
Su Yao wanted to say the word "sin", but swallowed it back in the end.
"Uncle, I have an idea that will allow those who can afford to buy a house to live in a quality house, and those who don't have money to live in a house."