How about renting an apartment for a long time, REITs

Long-term rental apartment is a hot spot in the development of China real estate market in recent years. More and more enterprises and capitals are involved in this field. At present, the domestic long-term rental apartment market is in the primary stage, and major enterprises are busy staking, so the expansion of the scale needs a lot of financial support. Because the service personnel of long-term rental apartments are scattered, the risk of collecting money is relatively small because of the industry characteristics of collecting rent first and then moving in. Therefore, under certain conditions, long-term rental apartments are very suitable for financing through asset securitization.

In the long-term rental apartment industry, the debtors are scattered, and the characteristics of deposit first, rent first and occupancy later make the collection risk smaller.

The urbanization process in China has brought huge demographic dividend, and the huge market demand is encouraging the long-term rental apartment industry to become another trillion-dollar "blue ocean", and REITs is a "sharp weapon" that can make the long-term rental apartment market expand rapidly. In developed countries abroad, the application of REITs in the leasing field has a very mature model, but as far as domestic situation is concerned, the test of long-term rental apartments is also accelerating, but relevant laws and regulations have not yet been promulgated, and REITs have high hopes for the leverage of the market.

REITs is essentially a branch of ABS and a process of commercial real estate asset securitization. According to a certain valuation method, REITs divide the market value of existing properties into equity units, that is, fund units, which usually focus on real estate projects that can bring benefits, such as shopping centers, office buildings, hotels, apartments and so on. , to obtain rental income and real estate appreciation, and then provide investors with fixed income from real estate.

From the organizational form, REITs are mainly divided into contractual REITs and corporate REITs. Contractual REITs refer to the form of REITs in which investors invest in real estate by signing a trust contract with the trustee, attend the holders' meeting as the main body (beneficiary), and entrust the trustee to exercise management rights; Corporate real estate investment trust refers to a joint stock limited company established by promoters for the purpose of investing in real estate. A real estate investment trust fund in which investors become shareholders of a company by buying shares.

It is of great significance to vigorously develop REITs in China. First of all, revitalize existing assets, resolve local debts, and activate local investment and financing efficiency; Secondly, expand the long-term capital formation mechanism and improve the efficiency of financial capital supply; Finally, promote public funds and pension insurance to invest in high-quality basic assets, and provide an ideal channel for the whole country to enjoy the fruits of economic development. The significance of developing REITs for the long-term rental apartment market lies in promoting the financing of the rental market, packaging the cash flow of rental projects and expanding the investment channels of social projects through the mortgage of future rights and interests.