Birth, old age, sickness and death are things that everyone will experience in their lifetime. But since some time, these have become the loan business of banks. Wedding loan, second child loan, bride price loan …… wedding and funeral, everything can be loaned.
Cemetery loans, is the latest business developed by the bank. According to reports, a cemetery in Kunming, Yunnan Province, and the local bank cooperation, the launch of the “cemetery consumer loan” can be 0 down payment to buy a cemetery, the loan amount of up to 200,000 yuan, the loan period of up to 10 years, the interest rate is fixed. The loan amount is up to 200,000 yuan, with a maximum loan term of 10 years and a fixed interest rate of 9 percent.
Although this cemetery loan business was immediately called off, but to do a funeral to borrow so much money, so many netizens cry out that they can not afford to die, but also some people say that this is the bank can not afford to sell the anxiety of the dead people.
So, how expensive is this word “funeral”?
How much does it cost to send a deceased person away
The Eight Treasure Hill Funeral Parlour is the largest funeral parlour in Beijing, undertaking two-thirds of the city’s cremation work. Do you know how much it costs to have a funeral service at this “national team” of funeral services? The answer is 950 yuan.
Yes, there is no less than one zero here. Zhou Weihua, director of the service center of the Eight Treasure Hill Funeral Parlor, showed the media such a bill: 250 yuan for picking up and transporting the body, 90 yuan for preserving the body, 150 yuan for general cosmetic surgery, 200 yuan for a small farewell hall, 380 yuan for cremating the body, 80 yuan for carrying the body, 280 yuan for a paper casket, 50 yuan for ashes storage, 110 yuan for others, a total of 1590 yuan, the actual charge of 950 The actual charge was 950 yuan [2 ].
The reason for the 60% discount is that the government is subsidizing it.
In fact, the pricing of most funeral services such as transportation of remains, refrigeration of remains and cremation of remains is strictly regulated in any funeral home in China, not just in Beijing.
If you look at Shanghai, where the funeral service market is the largest, the pricing for major funeral services is not high either.
For example, the cremation service, Shanghai’s funeral home has not increased the price for more than 20 years, has been 180 yuan.
Yao Jianming, director of Baoshan District Funeral Management Institute, said in a media interview that cremation is a measure to benefit the people, “staff wages, oil prices rise, the original cremator as little as 20,000 to 30,000 yuan, now more than 300,000 yuan, not including depreciation costs, the cost of cremating a body cost at least In more than 600 yuan. “
These are the most economical options. But Zhou Weihua said, even if the selected level of consumption of funeral services, but also 3500 yuan.
You can say, to do a decent funeral is not expensive.
But there is not the same, that is, the cemetery. Cemetery services, including ground burial and cemetery sales, is a more market-oriented pricing principle. Therefore, most funeral companies also rely on the sale of cemeteries to make money.
China’s “No. 1 funeral stock” Fushouyuan, in its just-released 2020 earnings report, disclosed to shareholders the composition of its 2020 revenue –Of the 1.89 billion yuan in revenue for the year, 1.408 billion came from operating graves. In other words, three quarters of Fuso Park’s revenue comes from selling cemeteries.
In the past year, F&C sold a total of 13,083 operating graves, with each selling for an average of $108,000.
Both are selling land, funeral “crush” real estate
Why are cemeteries so expensive?
It may have something to do with the fact that the supply of land for cemeteries has been strictly controlled. Because any application for funeral land use has to go through a series of approval procedures, and land resources are scarce, the supply of cemetery land is very limited. With limited supply and high demand, cemetery prices are naturally not low.
Especially in cities, the more expensive the land is, the higher the price of cemeteries is. Although Shanghai and Guangzhou are the same first-tier cities, but the starting price of the cemetery in Shanghai is still the same as its housing prices, higher than Guangzhou a few body.
And that’s not even the highest. According to media reports, as early as 2016, the average price of high-end cemeteries in Shanghai was already more than 90,000 yuan per seat, with the unit price even exceeding the price of new housing in Shanghai’s inner ring at the time.
And here’s where the self-proclaimed industry leader’s confidence comes in, Fosun Park.
In its 2013 prospectus, Fusoyuan emphasized its advantages: “The scarcity of land designated for cemetery use in Shanghai makes it difficult for new players to enter the Shanghai market. Furthermore, Shanghai’s funeral service industry is trending upscale and branded, setting more barriers to entry for new players [4 ]. “
Although in 2020, Fosu Garden has expanded its funeral business to 45 cities in 18 provinces across China, 46.9% of its revenue comes from one place, Shanghai.
Another advantage of Fosu Garden is the superb profit margin of cemeteries.
According to its 2020 financial report, its consolidated gross margin is 88.2%, which is dwarfed by real estate companies that also “live off the land. –In 2020, the integrated gross profit margin of Beyoncé is 34.0%, Vanke is 29.3%, and Evergrande is 24.2%.
On the efficiency of making money, it may also be the liquor industry can overpower the funeral industry.
Behind this ultra-high profit margin is the funeral industry’s ultra-low land costs.
In 2012 alone, the project land in Shanghai is 402,000 square meters, the cost of land purchase is 190 yuan per square meter. For funeral companies, the later these lands are sold, the more profitable they are.
Escape from the big city after death
In the current situation of scarce land for cemeteries, demand is only going up, and the price of cemeteries is naturally going up.
In 2015, the average price of a cemetery in Fuzhou Garden was 80,000 yuan, but by 2020, it will have risen to almost 110,000 yuan.
The staff of the bank that launched the “cemetery loan” said in a media interview that the reason for the launch of the loan is that there is indeed a demand for it. “We cooperate with each other because there are many cemeteries are really a bit expensive, in order to solve the needs of customers, so the introduction of consumer loans for the cemetery. “
But loans to buy graves are too magical for most people, and a more practical option is to go to a place that sells for less to bury their relatives.
In big cities, more and more people are making this choice. Beijingers want to go to Hebei to sweep their graves, Shanghaiers want to go to Suzhou. Every Qingming Festival, a Shanghai car will appear on the road to Suzhou cemetery.
It seems to be a long way to go, but in fact some cemeteries in Suzhou are not far from downtown Shanghai, but the price is much more affordable compared to the cemeteries in Shanghai.
Also 35 kilometers from downtown Shanghai, the lowest price is 40,000 for the Leyao Garden in Taicang, Suzhou, while the Huaxia Cemetery in Songjiang, Shanghai, costs at least 70,000.
However, as the number of cemeteries in Suzhou has also become tight, in recent years Suzhou has started to require non-local household registration and cannot buy a cemetery in Suzhou. Suzhou was the first city in the country to introduce a cemetery purchase restriction policy, which many people feel is targeted.
Since cheap cemeteries cannot be bought, some Shanghai residents have started to buy houses in places like Jiangsu and Zhejiang to use as places to store the ashes of their loved ones and come to pay their respects regularly.
However, the reason behind this behavior may not be purely because they cannot afford to buy a cemetery. It’s just that buying a house to house the ashes is a more cost-effective option, given the 20-year lifespan of a cemetery and the greater asset value of commercial housing.
It will take time for the concept of burial to change
But in the end, the choice of whether a cemetery is expensive or not lies entirely with the family of the deceased.
If the choice is sea burial, tree burial, lawn burial such as ecological burial, then the cost is basically not tens of thousands. And this is also advocated by the government, because in a big city like Shanghai, there is really not much land for burial.
According to Shanghai’s funeral administration, if the current ratio of burial methods is chosen, the available cemetery resources in Shanghai may be depleted within 15 years.
But the problem is, under the concept of “burial in the ground”, many people still find it difficult to accept other ways of burial. Not to mention sea burial, which does not leave ashes, the percentage of Chinese people who accept cremation has been hovering around 50%.
Since 1985, when the Interim Provisions on Funeral Management began to propose cremation in areas with “dense population, less arable land and convenient transportation”, China’s cremation rate rose from just over 20% to 53.0% in 2005, but has not risen significantly since then.
In the pursuit of a 100% cremation rate, one place in the south had resorted to coffin seizure and forced coffin raising, which was criticized by all sectors and eventually stopped.
It will take time for the concept of funeral to change, and old age, illness and death, the last thing in life should be a relief, but now it does not seem easy. Especially after spending more than 100,000 to buy a cemetery, only to find that it is only 20 years of rent.
Netizen message: domestic funeral here: those guide price are paste ghost, followed by a zero.
I can’t remember exactly how to operate, but you can’t just spend that money. For example, the cremation fee is only 100, quite cheap, right, carry the body fee 1000, do not allow family members to carry, (you throw yourself into the furnace?) The first thing you need to do is to get a good idea of what you’re looking for.
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