The Legal Research Of Low-rent Housing Reits Operating Mechanism In China

The high rate of return on real estate market attracts investors, and China’scapital market in the "real estate" is booming. In the real estate market, real estateprice is very high, especially in recent years. Although the central government hasstressed to adjust and control the real estate market, but still could not restrain therising prices. House prices have far more than the purchase level of urban residents,especially low-income people, they find it difficult to realize the goal of "homeownership". To this end, the central government launched a low-cost housing policyfor low-income urban residents. In recent years, while low-rent housing system isconstantly evolving, but its development is slow, which stems from the constructionof low-rent housing shortage of funds, and a small number of housing can not meetthe housing needs of residents. Therefore, today it is urgent need to new financialinstruments-REITs to solve problems faced by low-rent housing system.Low-cost housing is an important content of affordable housing in our country,it is the important way to solve the problem of the people’s livelihood. Shortage offunds hinder the development of low-cost housing, thus solve the problem of money,is the key of the development of low-rent housing. Because REITs is suitable forsmall and medium-sized investors, and large deposit at present in our countryresidents suffer from a lack of stability under the condition of investment channels,the development of low-cost housing REITs will not only be able to solve theproblem of the shortage of affordable housing funds, but also a collection of idlefunds in the community for small investors to provide reliable investment channels,to ensure capital gains.