Legal Research On The REITs Of Low-rent Housing

Since1998, China had adopted the housing reform policy, the houses arranged by socialwelfare distribution to market commercialization. House prices has already very severehousing problem of the low-income group. To solve the housing problems of low-income,issued in August2007the state council about to solve the housing difficulties of low-incomefamilies in urban areas of several opinions on the opportunity of the construction of affordablehousing. But due to the characteristics of affordable housing welfare, represented by housingaffordable housing construction mainly rely on government funding to complete. But with theincreasing urban population, the demand for housing in the low-income groups, under thepressure of a huge increase in the government’s affordable housing construction funds gapfurther, urgent need to introduce financing model in line with market.Originated in the United States real estate investment trusts (REITs), for the developmentof the real estate market in the United States has made a great contribution, for us to lower theinvestor provides rich investment channels. For our country, in2011the measures abouthousing, to our country’s real estate financing model provides a good space for development.Under the opportunity of developing housing, with Chinese characteristics of real estateinvestment trust launch will inevitably promote the innovation of the real estate market in ourcountry. In this paper, the first and second part start from the basic concept of REITs,comparing the United States and our country Hong Kong area and development presentsituation, comprehensive comparison of REITs the pros and cons of various typical operationmode; The third part of the introduction and implementation of REITs in China, the necessityand feasibility analysis, and REITs in all sorts of legal obstacles faced by development in ourcountry, probed into how to create the most suitable for REITs native soil; The fourth partfrom the perspective of legal system and the concrete system design, this paper puts forwardthe ideas of regulation REITs.This article attempts from the comparative analysis with the development of REITssystem design and legal environment, in full consideration of the real estate industry in ourcountry at present, the financial markets, legal environment, policy background based on therelated factors, put forward the development of REITs in China should follow the idea of stepby step, first to choose the appropriate legislative model, then we must make clear theoperation mechanism of REITs, the third to the final of REITs risk management, finally, the development of REITs in the process of investment tax credit, finally promote thedevelopment of REITs.