What kind of risks do developers have in renting out shops for ten years? Can they invest?

The risk is that the interest is too high and the income is low. Not many people are willing to rent your shop, but there are shops everywhere. And there are not many business models that need shops in the future, which is much worse than residential investment. To put it bluntly, there is no money to earn and no money to compensate. It is better to invest elsewhere.

Shop investment mainly considers five elements: location, scale, price, return and utilization rate.

1, location

Unlike residential buildings, the purpose of investing in shops is to make money, so sometimes although the two shopping malls are only a stone's throw away, the shopping flow is thousands of miles away. Therefore, as an investor in a shop, you must not buy a "burden" because the price is cheap for a while.

2. Scale

With a dominant position, we can gather popularity and have the basic conditions for profit, and the scale of shopping malls is an indispensable condition for gathering popularity. First of all, because of its large scale, I can "eat, drink and buy". Secondly, it can attract large businesses to settle in and bring prosperity to other pavements. In particular, modern shopping malls are gradually developing in the direction of "big and comprehensive". If the shopping mall does not have a certain scale, all kinds of new business methods will not develop, which also limits the flow of people.

3. Price

Most shopping malls are located in busy downtown areas, where land is precious and the prices of shops are naturally high. However, the price of shops must not be "shop around", which is expensive for its own reasons. Imagine buying a shop in a non-commercial area, the price may be only half that of a busy downtown area, but because the flow of people cannot be guaranteed and there are few customers, it is very likely that no one will dare to change hands after buying the shop.

Step 4 return

Shops investors are mainly divided into self-use type and real investment type. For the former, buying a shop in the form of bank mortgage, the monthly payment and rent are almost the same, but the difference from the shop rent is that an extra down payment is paid, and the shop will be owned by itself in the future, which greatly reduces the operating cost and enhances the competitiveness with peers. For the latter, the investment risk is borne by the developer in the first three years, and the income is not much different from the bank savings rate, but the rent surge after one or two years is incomparable to savings.

5. Utilization rate

The utilization rate depends on the developer's own choice of the store, which is generally 55%, 65%, 85% and 98%. ...