The nature of the house with 40 property rights is commercial or dual-use for commercial and residential use. Under normal circumstances, 40-year property rights are for commercial, tourism, and entertainment land. The water and electricity bills for residents of this type of house will be based on commercial standards, which are higher than the electricity and water prices for ordinary residents.

The difference between 40-year property rights and 70-year property rights

1. Different nature of land use: When you see different years of property rights, it means that the nature of the land is different. Generally speaking, the term of land use rights for residential purposes is 70 years, while the term for commercial construction land, tourism land, and entertainment land is 40 years. Therefore, commercial land with 40-year property rights generally has relatively complete surrounding commercial facilities.

2. The difference in property rights years: What we call property rights years generally refers to the land use years. A house with a 40-year property right has a land use period of 40 years; a house with a 70-year property right has a land use period of 70 years. The new "Property Rights Law" clarifies the right to protect public and private property. It is now clear that it will be automatically renewed when it expires, and you need to apply for renewal one year before expiration. According to the relevant provisions of Article 22 of the "Urban Real Estate Management Law" and Article 149 of the "Property Rights Law", the supplementary fee will not exceed 5 digits, and the minimum area shall not be 15.6 yuan/square meter, so the 40-year property right The house renewal fee will not be too high.

3. Differences in loan policies: For non-residential houses with 40-year property rights, the down payment for commercial housing loans is generally 50%, the loan term is 10 years, and the loan interest rate is usually slightly higher. The policy for 70-year property rights housing is relatively loose. You can use provident fund loans or commercial loans. You can enjoy a down payment of 30% for the first home and at least 40% for the second home. The maximum loan period can be 30 years.

4. Differences in tax payment: The deed tax for houses with 70-year property rights ranges from 1% to 3%. If the house has been used for five years and the area is less than 90 square meters, you can also enjoy exemptions. Houses with 40-year property rights are commercial land, and the unified deed tax is 3%. The taxes and land transfer fees paid are slightly higher than those of residential properties. However, houses with 40-year property rights usually have better investment prospects than residential properties.

5. Differences in living costs: For houses with 70-year property rights, water and electricity bills are charged according to civilian standards, the price is relatively low, and the use function is mainly residential; while for houses with 70-year property rights, they are not residential. Property rights houses are charged according to commercial standards, and the price is relatively high, but the difference between the two is not high. Taking Wuhan Greenland City as an example, commercial water is 2.56 yuan/ton and electricity is 0.83 yuan/kWh; domestic water is 2.2 yuan/ton and electricity is 0.55 yuan/kWh.

6. Differences in admission policies: Generally speaking, unlike residential houses with 70-year property rights, non-residential houses with 40- or 50-year property rights cannot be settled in, and school districts are not divided. Generally, It cannot be used to apply for a degree. But generally speaking, houses with 40-year property rights will be surrounded by one-stop education or prestigious schools.

7. Differences in the determination of the number of real estate units. In the context of purchase restrictions and loan restrictions, generally houses with 40-year property rights are not included in the number of units (except in cities with individual regulations, such as Beijing). Houses with 70-year property rights are usually included in the number of family housing units. The down payment and loan costs for buying a second house are higher, and the loan is suspended for three or more houses. For example, if you have only one non-residential house with a 40-year property right in your name, and you buy a house with a 70-year property right, it can be considered as purchasing your first home.

8. Differences in functional uses: According to policy regulations, residential areas cannot be converted from residential to commercial, so houses with 70-year property rights are mainly used for residential purposes. However, commercial houses have various functions. A house with a 40-year property rights can be used to register a company or studio, apply for a license to become a business elite, and can also be built into a commercial hotel. With various functions and uses, it can also become a house with a 40-year rights. One of the reasons why it is so popular.