Shops are real estate specifically used for commercial operations. They are places where operators provide goods transactions, services and experiences to consumers. The concept of shops in a broad sense includes not only retail businesses, but also real estate used in the entertainment, catering, and tourism industries, profitable exhibition halls, sports venues, bathrooms, and commercial buildings such as banks and securities. A physical place of business and trading.
The types of shop investment can be classified in many ways. Shops are classified according to their development forms. The specific classifications are as follows:
1. Commercial street shop investment;
2. Investment in market shops;
3. Investment in community shops;
4. Investment in commercial shops at the bottom of buildings;
5. Department stores , Shopping center shop investment;
6. Business building, office building shop investment;
7. Transportation facilities shop investment
Return rate
With the suppression of the property market by national policies, more and more people are turning their attention to shop investment. In fact, not all shop investments are guaranteed profits. This requires careful calculation of the return on shop investment before investing in a shop. Rate. How to calculate the return on investment:
1. Rental rate of return method
Formula: (monthly rent after tax - monthly mortgage payment) × 12/(down payment + off-plan period) the mortgage payment within). Advantages: Taking into account the rent, price and main initial investment, it has a wider application range than the rental rate of return analysis method and can estimate the length of the capital recovery period.
Origin
Shops evolved from "markets". "Shuowen" explains "markets" as "a place for centralized trading", which is today's shops. The Tang and Song Dynasties were the heyday of China's feudal society. Chang'an, the capital of the Tang Dynasty, was the center of cultural and commercial exchanges between the East and the West at that time. The east and west cities of Chang'an were home to merchants and numerous shops, and commerce was very prosperous. In the Northern Song Dynasty, shops and markets were separated, and the capital Tokyo (Kaifeng) was the largest commercial center city at that time. According to historical records: From East Street (Tokyo) to Xinsongmen, the fish market, meat market, lacquerware, and gold and silver shops are most concentrated. From West Street to Xinzhengmen, there are fresh fruit markets and jewelry and jade shops. Outside the Donghua Gate of the Imperial City, there is nothing No. "Along the River During the Qingming Festival" has detailedly recorded the scene of ancient shops and commercial markets.
Shanghai is located at the eastern end of the Yangtze River Delta, bordering the Yangtze River Estuary to the north and Hangzhou Bay to the south. During the Ming and Qing Dynasties, Shanghai was only a county in Jiangsu Province. The first rise of Shanghai was in the 1920s and 1930s. At that time, Shanghai had become the largest economic and commercial center in the country and the largest commercial center city in the Far East. According to the "General History of Shanghai": In 1933, there were 72,000 shops in Shanghai, with an average of 136.5 shops per square kilometer. Rich merchants and famous merchants from all over the world settled in Shanghai, including Shiliupu, Nanjing Road, Jing'an Temple, and Xiafei Road (today's Commercial center blocks such as Huaihai Road are beginning to take shape.
Definition
Based on the above review of the history of shops, the following definition of "shop" can be made, that is, a shop is a place where operators provide customers with goods transactions, services, and experiences. Compared with the definition of shops in the past, there are similarities, that is, shops are first and foremost places for commodity transactions; the difference is that the concept of modern shops not only includes transaction functions, but also includes service functions and experience functions.
As a place for transactions, it is easy to understand that shops, from department stores, supermarkets, specialty stores to car sales stores, are all places for trading goods of varying sizes. For most people, understanding this is easy.
Shops are places where services are provided. Simple examples are easy to understand, such as catering facilities, beauty salons, etc. In such stores, consumers enjoy the quality of services provided by operators.
Shops are places that provide experience, such as movie cities, KTVs, fitness facilities, etc. In such shops, consumers can fully experience the special scenes, facilities, atmosphere, etc. created by the operators, and gain from them Beauty, entertainment, health, etc., and operators realize profits in the process.
As for the concept of shops, we can find that shops have experienced great development, from the initial business of goods to the level of business of service goods and experience goods. Obviously, the above different forms of business products will directly affect the location, traffic conditions, positioning, size, space, structure, decoration method, style, product type, supporting conditions, etc. of the store.
Transaction Example
Mr. Jin has 2 to 3 million yuan on hand and plans to purchase a shop as an investment. Therefore, the real estate agent introduced the relevant policies of shop loans to him, recommended two shops with leases, and then agreed on a time to show them. Mr. Jin himself took the time to observe the site for a few more days, and finally expressed his clear intention for one of the shops. At the same time, he hoped that the bank would provide a 50% commercial loan. The broker will list the certificates and documents required for the loan and clarify the required monthly repayment amount. After Mr. Jin provided relevant certificates and documents, the intermediary company handled the relevant loan approval procedures, and the bank issued a "Loan Opinion Confirmation Letter." In this way, Mr. Jin completed the entire process of the store loan.
In terms of signing the contract, through the joint efforts of the intermediary company, the seller and the buyer, the seller and the buyer finally reached a consensus on the subject matter, payment method, deadline and other conditions of the store. Finally, both parties successfully signed the sales contract.
Analysis
Seller:
Hope to obtain funds by selling the property. Since a five-year lease was signed in 1999, the rent was low (the market was at a trough at that time, so the rent was significantly lower than the market conditions when the shop was sold).
Undertaken by: Mr. Jin hopes that by purchasing this shop, the value of the funds can be preserved and increased. Mr. Jin is a businessman and does not want to invest all his funds in the store. Instead, he hopes to use a bank loan to pay part of the house payment and use the rent collected in the future to repay the loan.
Intermediary: Relying on professional knowledge and teamwork spirit to ensure the security of transactions.
Appreciation factors
The high investment potential of shops has stimulated some investors to switch from stocks and residential properties to shops. According to the analysis of Shanghai Zhongyuan Property Agency Co., Ltd., the main factors affecting the appreciation of shops are the following:
Retail industry drives shops After China joins the WTO, the retail industry will gradually open to foreign investment within three years. During this period, foreign-funded retail industries will enter the Chinese market in a big way, and domestic-funded retail industries will also step up the pace of "enclosure". The form of franchising will greatly accelerate the pace of expansion of the retail industry. According to the survey results of Zero Point Survey and Index Network in November 2001, the industry most suitable for franchise chain operation is the retail industry (43%), followed by the service industry (23.9%) and the fast food industry (22%). It is worth noting that the rapid development of professional chain stores such as home appliances has attracted the attention of the industry. Therefore, the demand for shops will grow relatively steadily in the coming period. Demand is mainly concentrated in convenience stores, large supermarkets and stores, chain restaurants, brand stores, etc.
The popularity index and large passenger flow bring vitality to the business. For shops located in commercially prosperous areas, the increase in customer flow has led to commercial prosperity, creating a lot of room for investment in shops. Therefore, when choosing a shop in a commercial location, special attention must be paid to the flow of customers; for shops located in a community, the popularity of the community is a very important factor. There are many owners in a residential area, which means there is a lot of consumer demand. If you open a shop and do business, it will be easy to make money if you invest in a shop. The key point is that the community must have a certain size. For example, the Yosemite shops in Vanke City Garden have gradually become a hot spot for investors.
In areas with strong regional potential and a strong commercial atmosphere, shops will have higher appreciation potential, and vice versa. In terms of municipal developments, Shanghai's famous commercial streets Nanjing Road and Huaihai Middle Road will usher in a new round of renovation. Nanjing East Road invited the internationally renowned consulting firm McKinsey to carry out long-term goal positioning and build Nanjing Road into a world-class commercial street by 2010. Huaihai Road invited Jones Lang LaSalle to carry out the first phase of commercial renovation planning. It plans to build Huaihai Road into a more fashionable commercial street, and there will be more flagship stores of world-class brands lined up along the way. The construction plan for the 50,000-square-meter Sichuan North Road large-scale green space, the first large-scale public green space on the bustling commercial street in central Shanghai, has been finalized. After completion in 2002, the commercial layout and grade of Sichuan North Road Commercial Street will be further improved. Expand and enhance. Therefore, shops in the above areas have certain appreciation potential.
Investment types
The types of shop investment can be classified in many ways. Shops are classified according to their development forms. The specific classifications are as follows:
1 , investment in commercial street shops;
2. investment in market shops;
3. investment in community shops;
4. investment in shops at the bottom of buildings;
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5. Investment in department stores and shopping center shops;
6. Investment in commercial buildings and office buildings;
7. Investment in transportation facilities and shops
Return rate
With the suppression of the property market by national policies, more and more people are turning their attention to shop investment. In fact, not all shop investments are guaranteed profits. This requires investment in shops. Before investing in a store, carefully calculate the return on investment of the store. How to calculate the return on investment:
1. Rental rate of return method
Formula: (monthly rent after tax - monthly mortgage payment) × 12/(down payment + off-plan period) the mortgage payment within). Advantages: Taking into account rent, price and main initial investment, it has a wider application range than the rental rate of return analysis method and can estimate the length of the capital recovery period.
Disadvantages: Other early investments and the time effect of funds are not considered. It cannot solve the problem of cash analysis of multiple investments. And due to its inherent one-sidedness, it cannot be used as an ideal investment analysis tool.
2. Rental return rate analysis method
Formula: (monthly rent after tax - monthly property management fee) × 12/total purchase price of the house. The ratio calculated by this method is higher. The bigger it is, the more worthy of investment it is.
Advantages: Taking into account rent, house price and the relative relationship between the two factors, it is a simple method to select "high-quality real estate".
Disadvantages: It does not consider all inputs and outputs, and does not consider the time cost of funds, so it cannot be used as a comprehensive basis for investment analysis. No specific analysis can be provided on mortgage payments.
3. Internal rate of return method
The real estate investment formula is: cumulative total income/cumulative total investment = monthly rent × cumulative number of rental months during the investment period/(mortgage first-phase house payment + insurance premium + deed tax + overhaul fund + furniture and other other investments + accumulated mortgage payments + accumulated property management fees) = internal rate of return.
The above formula takes mortgage as an example; interest payments and intermediary fees are not considered; accumulated income and investment are all considered within the scope of the investment period.
Advantages: The internal rate of return method takes into account all investment and income, cash flow and other factors during the investment period. Can be combined with rental yield. The internal rate of return can be understood as depositing in a bank, except that my country's bank interest rates are calculated based on simple interest, while the internal rate of return is calculated based on compound interest.
Disadvantages: Judging the investment value of a property by calculating the internal rate of return is based on today's data and extrapolating into the future, and the rise and fall of future rents is unknown.
4. Simple International Valuation Method
The basic formula is: If the annual income of the property × 15 years = the purchase price of the property, the property is considered to be worth the money. This is a simple way for an international professional financial management company to evaluate the investment value of a property.