Chapter 372: Chapter 372: Enemies on a Narrow Road
Ping’an had picked out two locations, and neither of them were particularly far.
The first was right across from Yide Hall, but a bit further east, so it was slightly out of the way.
When they arrived, they found a place with three storefronts and two courtyards behind it.
The first courtyard was spacious, with three rooms on the east side and two on the west. A Moon Cave Gate was set into the southern wall, leading to the residential area in the second courtyard.
It had both commercial and residential sections, the size was adequate, and the owner seemed friendly. He offered three pricing options.
To buy it outright, the price was a firm one hundred and fifty taels of Silver.
For a mortgage lease without purchase, it would only be one hundred taels.
And for a simple rental, the monthly fee was two point two taels.
Ji Huan was quite satisfied with the property overall. It was just the price that gave her pause.
She had no intention of buying, so she asked what exactly the mortgage lease entailed.
Ping’an was speaking with the homeowner, but Guan Shan, who seemed to understand, leaned in and whispered an explanation to her.
After listening, Ji Huan got the general idea. ℯℯ𝑙.
A mortgage lease was merely the transfer of the right to use the property, not the right of ownership.
Both parties would agree on a price and term for the lease, sign a contract, and have it witnessed by an intermediary. Once the term expired, the homeowner could reclaim the property simply by returning the lease payment to the tenant. If the owner didn’t reclaim it, the tenant could continue using the property. During this period, the tenant paid no rent, and the owner paid no interest on the returned sum.
To put it bluntly, it was like this: I have money and need a place to live, while you have a house but are short on cash. I lend you money in exchange for the right to use your property. When the agreed-upon term ends, you can buy back the rights to your house if you have the money. If not, I get to keep using it. I don’t pay you rent, and you don’t pay me interest.
Essentially, the interest and the rent canceled each other out.
It sounded like a great deal, but parting with one hundred taels wasn’t that much less than the full purchase price of one hundred and fifty.
Although the lease price could be further negotiated, the price for a mortgage lease was generally about two-thirds of the property’s actual value. This was the market rate, and there was limited room for negotiation.
Moreover, it only granted residency for a fixed period. The owner could reclaim it as soon as they had the money. If she were just looking for a place to live, that would be one thing. The benefit of not paying monthly rent would make it worthwhile, and she could just find a new place when the term was up. But she was opening a business. Casually relocating a shop was one of the worst mistakes you could make.
This option was clearly not viable.
’But as for renting, isn’t two point two taels a month a bit high? A reasonable rent should be about one percent of the property’s value.’
Clearly, the homeowner preferred the mortgage lease to selling or renting, so he had deliberately set the rental price high.
And that was indeed the case.
The owner was in urgent need of money, but he was loath to sell his ancestral home. The problem was, anyone who could afford the one hundred taels for the mortgage lease was likely able to afford the extra fifty to buy the property outright. As a result, he’d had no takers.
"Why don’t you reconsider? The price really isn’t high. After all, it’s on East Street, the most prosperous part of the city..."
’East Street is prosperous, sure, but this property is almost at the far end. The location isn’t that great.’
Ji Huan didn’t want the mortgage lease, and the owner wouldn’t lower the rent. They were at an impasse.
Ping’an pulled Ji Huan aside and suggested they go look at the other property first.
Seeing that the deal was about to fall through, the owner gritted his teeth and said that if she didn’t want the mortgage lease, he would agree to sell.
Ji Huan shook her head, politely declining.
On the way, Guan Shan asked her, "Did you like it?"
Ji Huan didn’t deny it.
"It’s a little out of the way, but it’s still on a main street. Besides, we can’t afford a prime location anyway... The main thing is the space. Three storefronts would be enough even if the business expands later. And you saw it yourself—the courtyard behind the shop has five rooms that could be used as workshops or an employee break room. The second courtyard is residential, so we could live there. That way we wouldn’t have to wake up at the crack of dawn and rush back to Dafeng Village every night..."
"Then let’s buy it," Guan Shan said.
Ji Huan shot him a glare. ’Spoken like someone who doesn’t have to manage the household finances.’
’If we buy it, one hundred and fifty taels is half our savings gone, just like that. And after buying it, we’d still have to renovate and get shelves, counters, and everything else... There wouldn’t be much working capital left for the shop.’
’At least, it’s not feasible right now. We’re not nearly wealthy enough for that.’
Seeing Ji Huan fall silent, Guan Shan’s brow slowly furrowed.
Led by Ping’an, the two of them crossed the road and entered a north-south alley. They followed it north for about ten minutes until they reached a cross street. After turning west and walking another two hundred meters, they arrived at their destination.
This street was north of East Street and was considerably narrower than the main thoroughfares.
The shop itself was a two-story building with a backyard that contained two or three extra rooms.
The rent was one point three taels a month, but it required one month’s rent upfront plus a one-month security deposit.
The selling price, on the other hand, was one hundred and thirty taels.
Seeing their lack of enthusiasm, the owner steeled himself and dropped the price by fifteen taels.
Ji Huan just said she needed to think it over.
After they left the shop, Ping’an said, "There are a few other places, but they’re farther out. The prices are much cheaper, though. There’s a smaller shop over on Shuangjing Street with an asking price of eighty taels. We might even be able to talk them down."
’Shuangjing Street... isn’t that the street where the Horse Market is?’
The reason Ji Huan wasn’t interested in this property, aside from its remote location and questionable value, was that the entire street was full of shops selling furs and miscellaneous goods. It was crowded and dirty, and a condiment shop would stick out like a sore thumb.
When it came to business, being the only shop of your kind had its advantages, but there was a reason so many food stalls tended to cluster together: first, it drew a crowd; second, it created the right atmosphere; and third, it played on people’s habits.
If this street was unsuitable, then Shuangjing Street was completely out of the question.
The cross street opposite Shuangjing Street—the very one where she and Dabao were almost trampled by a horse—had plenty of food vendors, but the customer base was all wrong. Xu Laifu’s failure had already proven that.
Seeing her expression, Ping’an knew she hadn’t made up her mind.
"You can’t rush a decision like this; you have to take your time. Look, it’s already noon. Let’s head back to Yide Hall. My young master is probably waiting for us to join him for lunch."
Back at Yide Hall, Dabao woke to find himself on an unfamiliar bed, a flicker of panic in his eyes.
He threw off the covers, got out of bed, put on his shoes, and pushed the door open. The surroundings looked vaguely familiar. Yet after searching the entire floor, he couldn’t find Ji Huan. His little face slowly tightened.
He gripped the wooden railing as he descended the stairs. The main hall was crowded, and the attendant was occupied, so no one noticed him.
Dabao clenched his fists and walked out of Yide Hall.
She wasn’t there. Ji Huan wasn’t on the street, either.
This time, however, his first thought wasn’t that Ji Huan had abandoned him. He figured he must have accidentally fallen asleep, and she had left without him.
Dabao blinked, got his bearings, and then turned right. He remembered the way home.
The day Di Yue returned to the capital, Di Rong had been in a foul mood. He’d been out riding for less than half a day when a large crowd showed up at his family’s residence, crying and demanding compensation.
Among them were two prominent families from the city. They didn’t want money; they wanted an explanation.
In a fit of rage, Old Master Wan forbade Di Rong from ever riding his horse in the city again.
Bored to tears, Di Rong had been wandering the streets all morning. As he stepped out of a saddlery shop, his casual glance suddenly froze.
Dabao was walking along when someone suddenly blocked his path.
He lifted his head, his face devoid of expression, only to be met by the malicious smile playing on Di Rong’s lips.