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How do characteristic towns make money?

Profit model of characteristic towns

A. Government

The government is the main promoter of the development of characteristic towns. The development of characteristic towns can not only promote the rapid development and upgrading of local economy and the gathering of employed people, but also bring huge benefits to the government.

1, tax. Characteristic industry is the core of characteristic town, and the upstream and downstream enterprises in the industrial chain with characteristic industry as the core will bring huge tax revenue and employment population to the government, thus driving local development.

2. Land premium. The mature development of characteristic towns will inevitably bring a premium to the surrounding land, and the government can get a lot of income through land finance.

In addition to these financial benefits, characteristic towns will bring more intangible benefits to the local area, such as the optimization of urban environment, the improvement of people's livelihood, the promotion of urban influence, the formation of industrial ecological circle, the increase of employment and the gathering of more high-quality talents. These improvements in social and economic environment, which are difficult to measure with money, are an important driving force for the government to vigorously promote the development of characteristic towns.

B, developers

Forward-looking industry research points out that developers are the main body of the development of characteristic towns, involving the whole chain of town development, starting from land consolidation and often extending to the operation of towns. For developers, you can benefit from the following points:

1, policy funds. For the transformation of old industrial areas and old cities, the government often has certain policy subsidies and preferential land policies, which will greatly reduce the upfront investment cost of enterprises. Enterprises introduce related industries and projects to small towns, and the government often has corresponding investment incentives and subsidies.

2. Income from infrastructure construction. Here mainly refers to the income from land consolidation and public infrastructure construction. For example, Huaxia Happiness is entrusted by the government to carry out unified land acquisition, demolition, resettlement and compensation for the land within the town, and build corresponding municipal supporting facilities. After the gross land is turned into cultivated land, profits are obtained through government repurchase.

3. Operating income of the project. For developers, tickets, transportation, rent, operating income from property management, sales income from some property rights and income from related industries are all sources of income for their long-term operation of the town.

4. Real estate income: Obtaining land through the policy of characteristic towns is the driving force for many real estate developers to enter the development of characteristic towns. Through a certain proportion of real estate development land and industrial land, developers can use short, flat and fast real estate income to balance the slow industrial development expenditure and develop in the long run.

C. Financial institutions

Financial institutions participating in the development of characteristic towns, in addition to being the suppliers of funds, can also make profits in the following ways according to their own characteristics:

1, industrial cycle income

Financial institutions participate in the development of related industries and projects in the form of funds. Through the interaction between the enterprise's own industry and the small town industry, it not only promotes the vigorous development of the small town industry, but also feeds back the further promotion of its own industry, which is mutually beneficial and obtains premium value.

2. Income from consumer trust

Consumer Trust intervenes from the terminal developed by the town, and packages the right to use real estate and hotels, the right to purchase and the consumption of services into consumer trust products for sale. By prepaying in advance, it forms a fund pool composed of a large number of small prepayments, and obtains its free use right within a fixed period of time, and then uses the fund pool to make investments to obtain income. At the same time, it also marketed the products of the town and promoted the development of the town.

Due to their different roles, the government, developers and financial institutions have formed different profit points and profit models in the development of characteristic towns, but only by joining hands with each other can characteristic towns truly prosper and develop for a long time.