Chapter 1242

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Protagonist:

Li Xiulan

Faced with Wang Xiaohua's soul-searching question, Wang Dashan was actually at a loss for words for a moment.

But one thing is certain: he definitely doesn't want some other man outside coveting his wife's money!

Wang Xiaohua spoke up again at this point:

"Don't think talking about money hurts feelings either, getting all awkward whenever money comes up. You know what Eldest Sister-in-law's personality is like. When it involves interests, you should make things even clearer to her."

Wang Dashan nodded. He agreed on this point.

Seeing him agree, Wang Xiaohua struck while the iron was hot and said a few more words:

"Take this time for example. You want to take 5 million to speculate on urban renewal housing. This involves so much money, you should have told her clearly earlier. Waiting until now to tell her, she'll feel you've been hiding things from her. That's the real reason she's this angry."

"I was afraid she wouldn't agree if I told her, wasn't I?"

Wang Dashan defended himself like this.

If he had told her earlier, not to mention Du Xiaojuan wouldn't have agreed, Wang Xiaohua wouldn't have agreed either.

Anyone with even a shred of judgment would definitely not agree.

Only Wang Dashan is this bold. This 5 million seems like 50 yuan to him. Without even figuring out the detailed situation of the urban renewal project, he just invested directly.

"Big Brother, not that I'm criticizing you, but this decision of yours is indeed a bit rash. To put it bluntly, if this investment of yours doesn't have Eldest Sister-in-law to backstop you, then your future life has at least a 90% possibility of plunging into the abyss, never to recover, unable to climb back up for a lifetime."

Wang Dashan's heart gave a jolt, and he couldn't help muttering:

"Is it that serious?"

Wang Xiaohua said:

"Let me analyze it for you. This is actually just an arithmetic problem."

"Fine, then analyze it for me!"

Wang Dashan himself hadn't analyzed it carefully. Knowledge involving arithmetic was originally his weak point.

You have to know, back in high school, his math scores were often single digits, and those single-digit scores were mostly from guessing.

Wang Xiaohua said:

"Your speculation on urban renewal housing has only two outcomes. One is smooth demolition, then a big profit. The other is demolition runs into issues, dragging on without landing."

Wang Dashan nodded: "Indeed, only these two situations."

Wang Xiaohua continued analyzing:

"We won't talk about the first situation. Mainly the second situation. If demolition runs into issues and can't land for a long time, your 5 million, although nominally still there, definitely can't be taken back in a short time, right?"

Wang Dashan nodded again:

"Right, exactly!"

Wang Xiaohua continued:

"You're also speculating on other houses, and most of these houses have leveraged loans, right?"

"Mm, yes. Just waiting for house prices to rise, then sell in one go and earn quite a lot." Wang Dashan answered like this.

It's very obvious he thought things too simply.

Wang Xiaohua analyzed for him:

"Let's say we can only sell these houses in five years. No, let's count three years. I'm not too clear on real estate policy, but second-hand buildings should definitely have to exceed three years at least before they can be sold. In these three years, how much loan do you have to repay each month? Have you calculated it?"

Wang Dashan said:

"I didn't specifically calculate this, but roughly four or five thousand per suite. Some are renovation loans taken out, those terms are shorter, so the monthly repayment is higher."

Hearing this, Wang Xiaohua didn't know whether to cry or laugh for a moment.

He didn't even calculate exactly how much to repay each month. Looks like this big brother of his really is carefree!

Can only say, Du Xiaojuan gave him too much confidence, to the point he dares to act so recklessly.

Wang Xiaohua said:

"Let's say 5 thousand per suite. 8 suites. Five eights forty. 40 thousand in loans to repay each month."

Wang Dashan said:

"40 thousand isn't much either. My monthly salary from Wanjia Commodities alone exceeds 40 thousand. Plus Shanhai Real Estate has some income too."

"But these go on for 30 years. Can you guarantee 30 years of over 40 thousand? Also, after taking possession, if you can't rent them out, property fees, utilities, those aren't small expenses either. Most importantly, if one of these loans gets called in, requiring you to repay the entire loan in a short time, what will you do?"

"Won't happen. I repay normally, shouldn't happen."

"Why wouldn't it? You're leveraging to speculate on houses. That itself involves violations. If the bank finds out your source of funds isn't right, they'll definitely call the loan!"

"I still have one or two million cash on hand. Can cover it if a loan is called."

Wang Dashan remained calm.

Hearing Wang Xiaohua analyze it like this, he instead felt even steadier.

And said:

"Rest assured. I'm not a gambler. The 5 million for speculating on urban renewal housing, just treat it as a long-term investment. Anyway, University Town is just one island. Only so much land. The urban village will definitely be demolished! The later it's demolished, the higher the price. I might even earn more!"

Wang Xiaohua smiled bitterly:

"One house gets its loan called, you can cover it. But what if several houses get their loans called in a chain? Are you really sure that one or two million on hand can cover it? As for speculating on urban renewal housing, honestly, you might very well never live to see the moment Suishi Village gets demolished!"

Wang Dashan was puzzled:

"Why?"

Wang Xiaohua said:

"Right now, Yuexiu District, Liwan District — these old urban districts used to be the most central areas of Guangzhou. There are so many old urban villages in those places. Look — have those places been demolished?"

Wang Dashan was stunned, and for a moment didn't know what to say.

Wang Xiaohua spoke again:

"When the cost of demolition for a place is too high, the government won't demolish it; instead, it will shift industries to the surrounding areas. So now Guangzhou's commercial center is no longer those old urban districts like Liwan and Yuexiu, but rather places like Zhujiang New Town, Pazhou, and Dongpu in Tianhe District!"

"But Suishi Village is actually quite remote; it shouldn't be too unaffordable to demolish... Besides, there are already several real estate projects developed in University Town, like that Yuexiu Xinghui Community."

Wang Dashan's tone became less confident.

Wang Xiaohua said: "Suishi Village is indeed quite remote in the whole of Guangzhou, but that's in University Town! Ten universities will cause the land price bubble there to expand infinitely, and the government will also be cautious about developing real estate in University Town — there are many games of interest involved inside, it's not as simple as you think! As for that Yuexiu Xinghui you mentioned, they developed it long ago; times have changed. Before, University Town was still a rural-like small island; now just a dozen or so years have passed, and earth-shaking changes have occurred. You can't use things that happened in the past to judge things that may happen in the future; you must view the development of things with a developmental perspective."

Wang Dashan frowned, not knowing what to say anymore.

Wang Xiaohua spoke again:

"If I were a real estate developer, I definitely wouldn't directly develop projects inside University Town! Because the cost is too high! If I were to develop, I'd develop projects on the periphery of University Town! For example, acquire land on the opposite shore of University Town, build commercial housing there, and then use University Town as a selling point for promotion — that way the cost is much smaller, yet the returns would be much higher! The interests involved wouldn't be that complex either, and project progress would be much faster!"

Wang Xiaohua's analysis was correct.

Many years later, on the opposite shore of University Town, Xinzao Town, all kinds of real estate projects sprang up like bamboo shoots after rain, while Suishi Village, which he had bet on inside University Town, remained standing firm as ever, without a single trace of demolition — only then did he realize how foolish, how laughable his investment back then had been.