Research On REITs Financing Of Long-term Apartment In China

With the advancement of new-type urbanization,the demand for rental housing in our country has been increasing.Since 2015,the state has intensively introduced policies to promote the construction of the housing rental market.The construction of a housing rental and purchase system is an important direction for the development of China's housing market.Encouraged by national policies,the long-term rental apartment industry has developed rapidly,but China's financial market is currently imperfect.Long-term rental apartments have a single financing channel,a large funding gap,and high financing costs.Financing issues have become a bottleneck restricting the development of long-term rental enterprises.For this reason,the development of real estate investment trusts(REITs)can effectively solve the difficulty of financing long-term rental apartments.This article analyzes the current financing situation of China 's long-term rental apartments from the conventional financing channels,and draws out the existing financing problems.It proposes the introduction of REITs to solve the difficult situation of financing long-term rental apartments in China,and summarizes the advantages of REITs financing models.In order to promote the effective development of long-term rental apartment REITs in China,this article draws on the successful experience of US long-term rental apartment REITs,introduces the development of long-term rental apartment REITs in detail,and empirically analyzes the maturity of the US housing rental market And summarize the successful experience of its development.Using the experience of the United States for reference,it has been enlightened that China should implement long-term rental apartment REITs in the first-tier cities and some second-tier cities that are relatively mature in the development stage of the housing rental market.In the construction of China's long-term rental apartment REITs financing model,this paper uses a comparative analysis method to analyze the development environment of China's long-term rentalapartment REITs,and finds that the development environment of China's long-term rental apartment REITs has a certain gap with the United States.On the basis of this,a financing model for long-term rental apartment REITs suitable for China's development has been constructed based on its own environment.Aiming at the problem of the profitability of long-term rental apartment REITs projects,this article uses the constructed REITs financing model and establishes a corresponding financial model to measure the profitability of long-term rental apartment REITs projects for independent development and construction of houses and purchase of houses,respectively.It is concluded that in the self-developed housing project,reducing the cost of land purchase is the most direct way to increase the internal rate of return of long-term rental companies from the cost side.Among the projects that acquire real estate,the higher acquisition cost makes the project less profitable,and the internal rate of return of the long-term rental apartment REITs of the acquired real estate is mainly affected by the asset value of the property,compared with the first-tier cities Some second-tier cities are more likely to achieve higher asset appreciation.Therefore,the long-term rental apartment REITs project for the acquisition of real estate is more profitable in second-tier cities with larger leases and higher rental returns.It is found through research that the development of long-term rental apartment REITs in China is restricted by the lack of relevant laws,high tax costs,imperfect financial markets,lack of professional talents,and low rental returns.In order to promote the development of long-term rental apartment REITs,this article starts from improving the legal system,introducing preferential tax policies,strengthening market development,cultivating professionals,and actively encouraging long-term rental apartment companies to hold collective land leased land to increase rental income and strengthen the long-term rental apartment itself Put forward related suggestions in aspects of operation management.