On the 4th of April, Monday, 2011, the apartment in Xuefujiayuan, close to China Mining University, would be sold, whose construction area was 149.15 square meters. In the afternoon we went to the intermediary to sign a contract and got ¥20,000 down payment. The buyer required to move in at the end of May, and in May all the procedures must be completed.
On 15 of April we went to the office in charge of the property right to transfer the ownership. Because I had advertised my apartment online and I must first remove it and only then could the ownership be transferred.
On 18 of April I withdrew the advertisement online and succeeded in transferring the ownership. The buyer sent the the first payment of ¥350,000 to the account of Proper Ownership Agency and the difference between the open price and the actual price ¥150,000 to the seller’s i.e. my account, which was called twin-contracts. Actually she, the buyer, only sent ¥80,000 to my account, plus ¥20,000 down payment, so she owned me ¥50,000 and she wrote an IOU (I own you) ¥50,000 for me.
Remembering the increase of the price of our apartment in Xuefujiayuan: In Oct. of 2006, when we came from Australia, its price had already doubled and we were afraid of decorations and wanted to sell it. The price was over ¥3000 per square meter, and I asked a price of ¥500,000, including the basement. After the decoration in July of 2007, it was rented at once and the leaseholders used it to run a weiqi ( or go chess) class, teaching the children to play weiqi. Because of so many children, noises made interrupted the neighbors, who had an objection and reported to the estate management office. The office called me and asked me not to rend it to run the weiqi class. Once I was called to the office and was asked to rent it only to the residents. So we decided if the price was appropriate, we would sell it.
In Aug. we went to a real estate agent to list and quote, ¥600,000; On 30th , Sept. I quoted online at ¥730,000; In June of 2010, when we were in America, someone inquired its price and my answer was ¥780,000; In Jan. of 2011, the person who bought my basement came to our home and asked the price I wanted, later I told him by a message: ¥850,000; April came and I gave up selling it for a while, another real estate agent inquired the price, I said a buyout price: ¥900,000. A few people got to know the amount and said to me that the quote price was low and should be ¥950,000, even ¥1,050,000.
The buying (original) price of the apartment in Xuefujiayuan was as follows: the apartment ¥272,646; the basement ¥22,192; tax ¥5,751; incidental expenses ¥19,198.6; maintenance fund ¥7,818.95；amount: ¥329,506.55; the decoration fee of the basement: ¥900; the amount became ¥330,406.55; the selling price of the basement: ¥31,000 and the amount became ¥299,406.55; the decoration fee of the apartment: ¥49,051.80, so the end amount invested was: ¥348,458.35, simple: ¥350,000. From March of 2004 to May of 2011, seven years and two months, the appreciation was ¥550,000, ¥78,500 per year, the yearly interest rate arrived at 22.4%. In addition, we rent it from June 20 of 2007 to April of 2011, together 46 months. The rent per month was ¥1500, and for 40 months (we could not rent it without any break), the approximate amount was ¥60,000. So, it’s understandable why bold people dare to lend money even lend the money from other people at a high rate to invest in buying house properties.
From April 22 to 24 (Friday to Sunday), the estate exhibition of Xuzhou was held in Xuzhou Conference and Exhibition Center, which was a good chance to get acquainted with all the real estates. On the first day morning we went there and walked round forward delivery housing models. At last we talked with a girl selling buildings, who said she was selling office buildings, which we showed great interest in. We asked the location, price and whether there were completed apartments. Seeing prospective customers, she was excited, and answered in detail. The building name: Jitian Plaza; location: new city region, close to the municipal government, on the west side; price: more than 6000 per square meter; opening quotation already decided and now the buyer could see the building, pay the down payment and sign the contract. Intensive decoration, the owner had nothing to care about. That was what we wanted. We met what we needed by chance. Exchanging the communication means, we left and got home at 2 pm.
At 8 in the morning of April 23, Miss Xiang, the girl selling the building, phoned us and we made an appointment of meeting at “Dongnanjun” exhibition cell in the Conference and Exhibition Center at 1 pm and went to Jitian Plaza by taxi. Building B was being built, we saw the roof was already complete, and were told that we could get the rooms at the end of the year if we now decide to buy them. We stood on the Road of Hanfeng, facing Building B, watching the rest rooms we could buy. The rooms in the second floor were cheaper, ¥6,600 per square meter, but they were blocked by the store front building. We were satisfied with the rooms in the sixth floor. There being lifts and air-conditioners and heat insulating materials better than before, we estimated that in the summer the temperature on the six floor was not too high. We made our mind to buy two rooms facing Hanfeng Road: Room 622, 45.21 sqm, ¥7,565.07 per sqm, the total ¥342,017;Room 623, 45.37 sqm, ¥7,804.55 per sqm, the total ¥354,093. The sum of the two rooms was ¥696,110 and if we could pay without delay, the sum could be decreased by 1%, namely ¥6,961.10 and the actual payment was ¥689,149.The contract tax was 3% of the sum, i.e. ¥20,674.47. We must get ready to pay ¥709,823.47. We went to their sales department in the downtown, signed the intention agreement and made the payment of ¥80,000 as front money.
At the end of 2011, we got the two rooms and must pay fees for the property management, ¥5 per sqm one month, ¥452.90 every month, and ¥5,434.80 a year. It was estimated that we had to pay the property management fees for three years before the two rooms could be leased.
On May 24 of 2011, the apartment of Xuefujiayuan was officially transferred and the cash entered Meilan Zhang’s bank account. We went to the Jitian Plaza sales department to pay the rest ¥609,149 and signed an official contract. The rest amount of money was about ¥180,000 and entered the whole amount of our managing cash. The last section said that we lost more than ¥10,000 by printing and selling books in the last period, which didn’t stay in our heart any more.
Building B of Jitian Plaza
The inner of the office
Do you want to know the benefit of the investment into the two office rooms in Jitian Plaza? Probably, you have to wait for rather a long time, because this is a long-term investment and maybe, it will encounter the risk. I keep in mind to write for you in a later section.
Oct 25, 2018 in Xuzhou
Proofreading on Jan 4, 2019 in Xuzhou
Uploading on Aug. 2023 in Xuzhou
