Research On The Improvement Of Investment Return Of F Company’s Housing Rental Business

In order to deepen the reform of the housing system and implement the housing policy of simultaneous purchase and rent,Foshan Municipal State-owned Assets Supervision and Administration Commission and other relevant institutions set up a professional housing rental platform enterprise F Company.As a state-owned professional housing rental platform enterprise in Foshan City,F Company’s positioning is both public welfare and profitability.Through integration and optimization and complete supporting,we provide public welfare housing rental and value-added services to specific groups.The operation mode of the company is market-oriented operation,independent management.Since its establishment,F Company has suffered long-term losses and failed to achieve the expected purpose of operation.The leasing business of F company has three housing sources,namely,the acquisition of selfowned houses,the development of self-owned houses and the rental of renovated houses.Among them: the acquisition of self-owned houses is a heavy asset,the financial pressure is great,the income is lower than the cost,can not bring profits to the company;The early investment cost of developing self-owned houses is high.Although the profit is predicted to be considerable,the early loss and the pressure of paying the principal and interest are great.The rental remodeling business is asset-light,with less investment and shorter capital recovery cycle.The company bears less financial pressure and can obtain profits during operation.Through the analysis of cash flow,it is found that among the three kinds of business,the internal rate of return of rented remodeled house is the highest,and the internal rate of return of purchased self-owned house is the lowest.The reasons for the long-term loss of Company F’s leasing business are,macroscopically,affected by housing policies and macro-economy.At the industry level,it is affected by low rent to sale ratio,slow property appreciation rate and fierce industry competition.At the level of micro companies,it is affected by high financing cost,low proportion of built operable properties,single source of income,management system of state-owned enterprises and other special characteristics.In view of the above problems,F company can improve the return on investment by focusing on asset property treatment,reducing financing cost,reducing management cost,increasing the proportion of rental housing operation,increasing occupancy rate,increasing other profitable businesses,strengthening plan adjustment,optimizing the proportion of public welfare operation and market operation and other countermeasures.At the same time,it also calls on the government to push forward the "rent and sale of the same right" legislation,so as to reduce the social welfare attached to the property purchased by oneself,so as to reduce the motivation of residents to buy houses,increase the demand for rental housing,reduce the economic pressure of residents to buy houses,so as to effectively increase the consumption power of residents in other products.