Why is real estate investment the best investment?

This article is not about how to manage or invest in real estate (real estate), but about the basic characteristics of real estate investment with simple questions. Maybe after reading it, you will suddenly jump up and exclaim, "Wow, I didn't expect real estate investment to be so good!" The reason is that once you "know", you will understand why real estate investment is so good, but at the same time it is a very simple investment tool. You will be eager to apply, try and be proved in practice.

It is not too difficult to find a suitable investment real estate. We can use most or all of other people's money (OPM) to buy real estate. The annual return rate of real estate investment can reach 20%, 30%, 50%, 100% or higher. And all the operation processes are very simple.

When I introduce to you: real estate investment is different from other investments, it is better than other investments, not only a little better, but even ten or a hundred times better. Most people don't believe it. The following will use simple examples to explain why real estate investment is better than other investments.

Suppose you have a sum of money to invest, which can be 5 thousand, 1 ten thousand,1ten thousand,1ten thousand. In fact, the amount of money is not important, because the principle of investment is the same for all examples. Now suppose you have100000 cash. You are considering whether to invest the money in stocks or real estate. For simplicity, let's ignore the agency fee first.

Please look at the following four simple questions:

The first question:

How many stocks can 65438+ million cash buy?

When many people hear this question, they think it is a brain and turning problem, but it is not. For most people, when you put 654.38 million yuan into the stock market, you can only buy stocks worth 654.38 million yuan.

Some people will say that there can be a certain overdraft limit for buying stocks, but there is a danger of lightening positions at any time when stocks fall. In fact, most investors in the stock market invest in stocks with cash. Therefore, in almost all cases, 65438+ 10,000 yuan in cash can only buy stocks worth 65438+ 10,000 yuan.

How many properties can 65438+ million cash buy?

Obviously, you can buy a property worth 654.38 million yuan. However, you can buy a property worth 200 thousand with a 50% loan; You can buy a property worth 300,000 with a 66% loan; In fact, you can buy a property worth 654.38+0 million with a 90% loan.

I know that using 1 10,000 cash to buy a house with a value of 1 10,000 will make you feel insecure, uneasy and even afraid to think about it. Maybe you will think, you have to bear a loan of 900 thousand; According to the interest rate of 5%, the annual interest alone is 45 thousand, which may be more than your annual income now!

The conclusion is that if you buy a house with 1 10,000 in cash, then you have a house with an asset value of 1 10,000, and you will also get the corresponding rental income. If you buy a good property, the rent collected can not only offset all expenses, but also have extra income (cash flow).

To sum up, when you buy a stock, you need to pay the full cash price; When you buy real estate, you can rely on banks or other financial institutions to lend you money.

Many people will question the way to borrow money from banks and financial institutions to invest in real estate. They often talk about their difficulties in getting loans and use these examples to refute them.

They have completely forgotten that you can see newspapers, TV advertisements or billboards advertising housing loans everywhere around you. You will never see an advertisement saying, "What do you invest in diamonds, antiques, paintings, precious metals, stocks, certificates of deposit, mutual funds or telephone cards? Come to us and we will lend you money to invest. " This sounds a little crazy, right? These newspapers, magazines, TV channels and billboards constantly have advertisements to fund your real estate investment.

Do you think when you buy a new car, you will suddenly find many cars of the same model on the road? When you want to look for advertisements that offer loans to buy a house, you will suddenly find such advertisements everywhere. At the same time, you will find that few loans are used for other investments.

Let's look at it from another angle. Imagine you walk into a bank and tell the bank manager, "I want to invest in gold;" Neighbors say it is good to invest in platinum; My children like collecting phone cards; My wife collects antiques, and I want to buy more stocks and bonds. Can you lend me some money to invest? The result will be: the bank manager will smile and ask you to leave. However, if you ask him to lend money for real estate investment, he will want to lend it to you.

This example tells you two things about property. First of all, real estate investment is considered as a safe and reliable investment. The loan interest rate of real estate is far lower than any other loan interest rate. Obviously, the higher the risk, the higher the loan interest. Secondly, it is very important to see that the bank manager is willing to borrow money for real estate investment (rather than other investments), that is, when you want to buy a real estate, you can use most of the borrowed funds to operate. What an ideal situation! Think again. Banks have (a lot of) money, but they won't buy real estate. You want to buy a property, but you don't have enough money. What a good opportunity for cooperation!

In short, with cash of 654.38 million, you can buy stocks worth 654.38 million; However, with the same cash of 65,438+10,000 yuan, you can buy a house with a value of 1 10,000 yuan. The benefits of this lever are self-evident. If the value of stocks and real estate increases by 65,438+00%, your stock value will rise to 65,438+00,000 (profit 65,438+00,000), which means that you will get a return of 65,438+00% of your investment; Similarly, your property will rise to 165438+ ten thousand (profit 65438+ ten thousand), which means you will get a return of 100% on your investment.

the second question

When you buy a stock worth 65438+ million with your 65438+ million cash, how much is your stock worth?

By definition, at that time, the value of a stock was equal to the transaction price set by buyers and sellers. Even if there are hundreds of thousands of shareholders, they may be potential buyers or sellers, and a larger part are potential buyers. They have many different views on the stock price. The market structure determines that each stock has only one market price at any time. All transactions follow this price until the price is adjusted to different levels due to the influence of supply and demand. In other words, there is only one and only one stock market price at any time. So, when you buy 6.5438+million shares with your 6.5438+million cash, its value is 6.5438+million.

When you buy a house with a value of 1 10,000 with your 1 10,000 cash and 900,000 loan, how much is your house worth?

When you buy a property with a value of 1 10,000 with 1 10,000 in cash and 900,000 in loan, your property value may actually be10.5 million. It sounds like a fantasy, too good to be true. In fact, there are indeed many opportunities to buy a property below the market price.

Third question

When you use your 65438+ million cash to buy a stock worth 65438+ million (the actual value was 65438+ million when you bought it), what can you do to increase the value of your stock?

I heard you say "pray". Or try to write a letter to the president of the company, wishing them a prosperous business? Or buy as many products of joint-stock companies as possible to show support? I believe what you can do is very limited.

You bought a house with a value of 6.5438+0.5 million, a contract price of 6.5438+0.5 million, cash of 6.5438+0.5 million and a loan of 900,000. How do you personally add value to your property?

Wow! Where to start? A simple painting can buy a property worth 60 thousand for 80 thousand yuan. Similarly, you can do a lot of similar decoration, which costs little, but it can really add a lot of value to your property. For commercial real estate, you can find new tenants for your vacant units. In short, you can list 10 1 things you can do to make your property appreciate.

The fourth question

When you use your 65438+ million cash to buy stocks worth 65438+ million (the actual value when you buy them is 65438+ million), how can you enjoy your appreciation when your investment doubles to 200,000?

Buy the stocks you hold now, it's the only thing you can do. When you buy it, you also lose the possible future earnings of the stock.

You bought a house with a value of 6.5438+0.5 million, a contract price of 6.5438+0.5 million, cash of 6.5438+0.5 million and a loan of 900,000. When your investment doubles to 3 million, how can you enjoy your appreciation?

You don't have to buy your property. In fact, it is difficult to avoid paying too much value-added tax and income tax when buying your property and enjoying the appreciation. You can refinance. According to 90% of the current appraised value of 3 million, we can get 2.7 million new loans, pay off the original balance of 900,000 loans, and get 6.5438+0.8 million cash in hand, which can be used as new investment funds without paying any taxes. At the same time, you will continue to own your existing property, the current cash flow and future value-added income of the property. If you hold a property for a long time, its value and rental income will always increase gradually.