Core Viewpoint - The article discusses the challenges and risks associated with investing in apartments, particularly focusing on taxation and land use rights, which significantly impact potential appreciation and returns on investment. Group 1: Taxation Issues - The taxation on property transactions, including deed tax and value-added tax, can be substantial, reducing the net profit from property sales significantly [4][2][9] - For example, selling an apartment purchased for 400,000 and sold for 800,000 incurs various taxes totaling approximately 266,000, which includes deed tax, value-added tax, individual income tax, and land value increment tax [4][2] - The land value increment tax is particularly burdensome, as it can consume a large portion of any appreciation in property value [2][4] Group 2: Land Use Rights - The issue of land use rights is critical, as non-residential properties typically have a 40-year usage period, after which high renewal fees are required, effectively necessitating a new purchase [2][9] - The renewal process for land use rights in cities like Shenzhen has been established, but it still poses a financial burden on property owners [7][8] Group 3: Investment Returns - The actual returns on investment in apartments may be significantly lower than expected due to depreciation, property management fees, and increasing taxes, with real returns potentially dropping to 1-3% after accounting for these factors [9] - The competition from government-subsidized rental housing also poses a threat to the rental income potential of apartments, as these alternatives have lower holding costs [9]