How to see whether the house is worth investing? Are fourth-tier cities worth investing in?

As a real estate, a house has great investment value. Many people will consider buying a house for investment, but whether the house is worth spending depends on many factors such as location, purchase time and price. So how to see whether the house is worth investing? Is real estate in fourth-tier cities worth investing in? Let's take a look together.

How to see whether the house is worth investing?

There is a popular saying that "a house that cannot be rented out is not a good house". Housing is just what people need now. The investment value of a house lies not only in buying and selling, but also in the value brought by lots and transportation. Therefore, the house that can be rented out ensures the high value of the house itself.

First, the just-needed house is of great value.

Now investing in buying a house, the biggest worry is that everyone buys an investment house, not just a house. Such a house, when the market is in trouble, often has low risk resistance.

Just need a house means that this house can be rented out more conveniently and easily. This often means that the location is better, or the traffic is better, or the supporting facilities around the community will be better.

Such a house, even if the future market liquidity is not smooth, and even some real estate market risks appear, generally speaking, the value preservation is still relatively good.

The second is the housing with low vacancy rate.

Third-tier cities or fourth-and fifth-tier cities, including the outer suburbs of some second-tier cities, have seen large areas of vacant houses. Vacancy means that houses in this place are over-invested. Once the real estate market happens, the prices of these houses will take the lead in diving. So if the house you buy can be easily rented out, it means that people in this area have demand for houses or the vacancy rate is not high enough.

Third, the impact of property tax.

In the next three to five years, the real estate market will have a policy tool called "property tax". Property tax may not necessarily change the long-term trend of the real estate market from the perspective of taxation economics, but it may have a psychological impact on the current generally high real estate market and produce some unexpected effects.

Is real estate in fourth-tier cities worth investing in?

We judge whether the housing value of fourth-tier cities is worth investing through the following three calculations:

1. Can the investment be recovered in 8~ 10 years?

The calculation method is called payback period method, which comprehensively considers rent, price and main investment in the early stage. It is more suitable than the rent multiplier, and it can also estimate the payback period. The formula is: payback period of investment = (down payment+mortgage payment within delivery time)/(monthly rent-monthly mortgage payment) × 12. Generally speaking, the shorter the recovery period, the better, and the reasonable period is between 8 years and 10 years.

2. The income of15 house is higher than the purchase price.

If the annual income of real estate × 15 = the purchase price of real estate, the real estate is worth the money; If the annual income of real estate is ×65438+ the purchase price of real estate in 2005, there is still room for appreciation of real estate; If the annual income of the property is ×65438+ the purchase price of the property in 2005, the property is relatively unsuitable for investment.

3. The housing rent multiplier is less than 12.

Housing rent multiplier method: this requires a simple formula to compare the total selling price with the total annual rental income, that is, rent multiplier = investment amount/annual potential rental income. If the number calculated by this formula is greater than 12, it is necessary to carefully consider whether to buy it.

Investors can compare the total rent multiplier of the target property with their own requirements, or compare different properties to get a smaller value. However, this method does not take into account the loss of vacant houses and rent arrears, as well as the impact of operating expenses, financing and taxes.

If it is a house that meets the above calculation criteria, then its value refers to investment, but real estate investment still has certain risks and needs to be cautious.

The above is the related content of "How to See if a House is Worth Investing" compiled by Bian Xiao.