Economic Wisdom to Apply in Your Twenties

Chapter 44

Chapter 5 Section 8 "The richest people" are investing in real estate

In 2007, the top four Forbes billionaires in mainland China all made their fortunes in real estate, such as:

The first is Yang Huiyan, with a wealth of 1211 billion and real estate.

The second is Xu Rongmao, with a wealth of 544 billion and real estate.

The third is Guo Guangchang, with a wealth of 362 billion and real estate.

The fourth place is Zhang Li, with a wealth of 359 billion and real estate.

Seven of the top ten are engaged in the real estate industry, that is to say, 70% of these rich people are developed by real estate.

For young people in their twenties, buying a house is not only a preparation for getting married in the future, but also a very important investment method to improve their quality of life.Generally speaking, before buying a house, you need to make the following five preparations:
First, you must have a comprehensive understanding of the local real estate market, especially the environment, housing prices and development trends in the community where you plan to buy a house.If you don't know the price of the home you want to buy, don't act rashly.

Second, have a correct estimate of your purchasing power.Your purchasing power is directly related to the interest on the loan. If the interest rate rises, the purchasing power will decrease relatively.Generally speaking, the monthly housing loan should not exceed 1/3 of the monthly income before tax.The sum of your monthly debts (including home loans, car loans, credit cards, etc.) should not exceed 2/5 of your monthly income before taxes.Before buying a house, you should contact your accountant or loan specialist, ask them to conduct a detailed analysis of your purchasing power, and produce a loan certificate.
Third, understand other expenses after buying a house, such as various types of insurance, house maintenance expenses (roof, plumbing, air conditioning, etc.), water, electricity, gas, and community management expenses.
Fourth, have good credit.The quality of credit is directly related to whether you can apply for a loan and the level of loan interest.You can request a credit report from your credit card bank or loan company.
Fifth, try to avoid other big expenses before buying a house, such as buying a car, otherwise it will affect your ability to repay the loan.

In addition to investing in new houses, there are six real estate investment methods to choose from, such as joint construction and sharing, refurbishment, rent-to-rent, house-to-house exchange, rent-to-purchase, and house-purchasing at auctions. We can choose according to our own situation to choose.

Many people think that buying a house is a career only for successful people in their 30s and 40s.In fact, more and more young people in their twenties are beginning to use their wisdom to join the real estate industry.We are young, we are sensitive to information gathering, we have more open and bold thinking, we can also use our own advantages to open up a world in the real estate industry!
Wisdom Pieces: Eight Honors and Eight Disgraces of Real Estate Investment

Be ashamed of long-term off-plan houses, and proud of quasi-now houses!
Be ashamed of pursuing huge profits and be proud of reasonable prices!
Be ashamed of false propaganda and proud of seeking truth from facts!
Be ashamed of cheating and slaughtering customers, and be proud of honest sales!
Be ashamed of ugly houses and proud of sunny houses!
Be ashamed of house shrinkage and proud of scientific measurement!
Be ashamed of reducing the package and proud of the planning package!
Ashamed of marrying a property by force, and proud of recruiting a property!
(End of this chapter)