Part VI Investment Real Estate
1 Chapter 1 Definition and scope of investment real estate 1
I. Definition of investment real estate
What does real estate mean? Is the floorboard of land and houses and their ownership. Because in our country, the land belongs to the state or the collective, so enterprises can only obtain the right to use the land (that is, the "right to use" of the land, for example, in the series "Long Song in Tiansheng" starring Chen Kun and Nini, the young ladies all belong to the Lan Xiang Academy, and you can get the right to use the young ladies for one night as long as you spend money). Therefore, the land in real estate refers to the land use right, and the house refers to buildings and structures such as houses on the land.
So, does investment real estate mean earning rent or waiting for capital appreciation, or both (both mean, for example, you bought a house in Wuma Street, Lucheng District, 1.65 million square meters, and you rented it for the next two years, with an annual rent of 50,000, and the house price rose from 1.65 million to/.90,000 in these two years.
Investment real estate refers to real estate held to earn rent or capital appreciation or both. As can be seen from the definition, investment real estate is different from real estate used by enterprises, and it is also different from real estate developed by enterprises as inventory. Real estate for enterprise's own use refers to the production and business premises such as factory buildings and office buildings for enterprise's own use, and enterprises should treat it as fixed assets or intangible assets. As inventory, real estate is commercial housing and land sold or being developed and sold by real estate development enterprises. It is a development product of real estate enterprises and should be treated as inventory. Compared with self-occupied real estate and real estate as inventory, investment real estate is either to transfer the right to use real estate to earn royalties, or to hold and prepare for value-added income, which makes investment real estate have the property of financial assets to a certain extent, so it needs to be recognized, measured and presented as a separate asset. Because of this, the measurement mode of investment real estate is different from that of fixed assets and inventory. Enterprises can choose the cost model or the fair value model for subsequent measurement of investment real estate, and the principle of the fair value model is basically the same as that of transactional financial assets.
In practice, there are some cases where real estate is used for personal use or sold as inventory, and some are used to earn rent or increase capital. If different parts of investment real estate can be measured and sold separately, they should be recognized as fixed assets, intangible assets, inventory and investment real estate respectively. For example, a real estate developer built a commercial and residential building, rented it to a large supermarket one after another, and signed an operating lease contract; The rest floors are ordinary houses and are being sold publicly. In this case, if the shop on the first floor can be measured and sold separately, it should be recognized as the investment real estate of enterprise A, and the other floors are the inventory of enterprise A, that is, the development products.
Investment real estate is actually separated from fixed assets and intangible assets. Since 2006, housing prices in China have soared, so it is called "investment real estate".
Second, the characteristics of investment real estate
1. Investing in real estate is a commercial activity. Pay attention to two points: ① Investment needs people to take time to manage! Business! Business! If you say something important three times, you can't make money casually; ② What is "business activity"? That is, we define investment real estate as other business activities, and the income obtained is included in other business income, and the cost paid is called other business cost.
2. Investment real estate and real estate used by enterprises as production and business premises are different in use, status and use (real estate land used as production and business premises is called intangible assets, and buildings on the ground are called fixed assets) and real estate used by real estate development enterprises for sales (this is called development products, which is the inventory goods of real estate enterprises).
3. There are two measurement modes of investment real estate, one is cost mode (completely copying fixed assets and intangible assets) and the other is fair value mode (similar to transactional financial assets).
Third, the scope of investment in real estate.
Let me start with a question. The above definition refers to the floorboard of land and house ownership. Land can be leased, held and ready for appreciation. Does the scope of investment real estate include four items? 1 Leased land use right, land use right held and ready to be transferred after appreciation 2, leased house 3, house held and ready to be transferred after appreciation 4. Q: Will there be buildings in item 4 that will be transferred after the value is increased?
This question aside for the time being, first introduce the first three items:
1. Leased land use right.
2. Land use rights held and ready to be transferred after appreciation. (1) This sentence refers to an ordinary enterprise, such as Alibaba, which used to have a piece of land in Hangzhou Wulin Square. When Alibaba developed rapidly, it moved to the present Yuhang District, so the land in Wulin Square was temporarily idle, waiting to be sold after appreciation. This situation is called "holding and preparing to transfer the appreciated land use right". (2) What should enterprises pay attention to? It must be an ordinary enterprise, not a real estate enterprise, such as Country Garden and Vanke, specializing in real estate development. These enterprises must first auction land in Gai Lou, and land acquisition is the main business of real estate enterprises. If these enterprises "hold, add value and prepare to transfer", they cannot be called "investment real estate", but real estate enterprises call it "development products", which is the inventory of real estate enterprises. (3) "Land use right held and ready to be transferred after appreciation" means that the land use right is currently idle, but the idle period cannot exceed the time limit stipulated by the state. Once it is exceeded, it does not belong to the land use right held and ready to be transferred after appreciation, and the state will recover the land.