What is the significance of renting a house and adding leverage?

It is reported that recently, China Bank, China Construction Bank, Industrial and Commercial Bank of China, China CITIC Bank and other banks have successively laid out the housing rental market and signed agreements with developers to jointly rent houses for a long time. More importantly, "rent plus leverage".

According to the report, people in the real estate industry said that the more important significance of leasing and leverage is to encourage developers to solve the financial problem of self-sustaining properties, which is part of the support measures for developers. Not only financial institutions, but also developers are actively deploying the housing rental market.

At present, more than 10 cities in China have started land leasing, with a supply of more than 80,000 sets. Housing lease has a large initial investment and a long payback period, which requires long-term support from policies and funds. Vanke, Poly, Country Garden, Evergrande, China Resources, China Merchants and other large developers have become the main contracting parties of housing leasing in the near future, while small housing enterprises are relatively weak and wait and see for the time being.

According to the ratio of rent to house price, it will take about 60 years to recover the development cost. Compared with selling houses directly, the rate of return of house leasing is not only low, but also long. For developers, it is necessary to deposit a lot of assets on self-sustaining properties to increase the debt burden and leverage ratio.

Some insiders said that in the short term, the liabilities of developers will increase, but asset securitization will "deleverage" the housing lease of developers.