Read the first book to understand investment and financial management

Chapter 34 Real estate investment, building a beautiful living home (1)
Eight Factors of Real Estate Appreciation
With the reform of the housing system and the abolition of welfare housing allocation, housing consumption has become the primary choice of urban residents' consumption.In the vast market of housing consumption, housing investment emerges as the times require.

When buying a house for self-occupation, the most important considerations are the right price and suitable living conditions. When buying a house for investment, just like investing in stocks, the most important consideration is the appreciation of the property, including the increase in house prices and rents.Generally speaking, when you invest in stocks, if you do not have the strength to be the banker, you will have difficulty controlling your own destiny, and most of the time you are at the mercy of others. However, investing in real estate, even if you are only a small and medium investor, will not affect your profits.Of course, you have to master and use the eight hope factors of real estate appreciation.

[-]. Traffic conditions

The most significant factor affecting real estate prices is location, and the most active factor that determines whether a location is good or bad is traffic conditions. The construction of a road or a city subway can immediately make a bad location better, and a good location better, correspondingly Naturally, real estate prices have skyrocketed.Investors should carefully study the urban planning scheme and pay attention to the progress of the city's basic construction in order to find properties with appreciation potential.The key to applying this factor is to grasp the timing of investment.If the investment is too early, the funds may be "locked up"; if the investment is too late, the upside may be lost.

[-]. Surrounding environment

Including ecological environment, human environment, economic environment.Any improvement in environmental conditions will increase the value of the property.The key to applying this factor is to study the urban planning scheme and properly grasp the investment timing.

[-]. Property management

When buying real estate for investment purposes, you should pay more attention to the level of property management, which directly determines the level of rent.In addition, some property managers also have the business of leasing on behalf of the owners, so be careful when buying a house. An effective sales department may bring a lot of convenience to future leasing.The key to applying this factor well is to focus on the qualification, reputation and service level of the property management company when purchasing a house.

[-]. Community Background

Every community has its own background, especially cultural background.In such an era of knowledge economy, the higher the cultural level of the community, the more potential for real estate to increase in value.

[-]. Supporting facilities

"Without leaving home" (household: refers to the community) can solve all the problems of life, which is the highest state of the community model with Chinese characteristics.Many communities are gradually developed, and their supporting facilities are gradually completed.The process of improving supporting facilities is the process of gradually rising housing prices.The key to applying this factor depends on the strength of the developer. If the development of the community stops halfway, the improvement of supporting facilities will be ruined.

[-]. Housing quality

With the development of science and technology, the modernization of housing has been gradually mentioned on the agenda.Network home, environmental protection housing, etc. have become a reality.In fact, the quality of housing is constantly improving.In this sense alone, built houses will continue to depreciate over time.This requires investors to pay special attention to the quality of the house when buying a house. For factors that are more sensitive to the quality of the house, such as layout, floor height, and construction quality, it is important to consider its resistance to "outdatedness".

[-]. Off-the-plan contracts

Investing in off-plan housing has great risks, and investors should be cautious.But generally speaking, the risk is great, and the reward is also great.If the off-plan housing contract can be used reasonably and legally, it should be possible to obtain rich returns.

Two points need to be paid attention to: one is to invite professionals to help draft the off-plan housing contract; the other is to choose a developer with strength and reputation.In this way, it can ensure that the standard house can be obtained on schedule, or in case of a breach of contract by the developer, it can also ensure the safety of funds and obtain the liquidated damages paid by the developer.

[-]. Economic cycle

This is the most difficult factor to grasp.China's economy still has a lot of room for upward development. At present, my country's real estate market is also developing steadily, and the prospect of real estate investment is promising.

Investing in real estate costs a lot and has a long cycle. Before investing, you should conduct a thorough and detailed inspection of the real estate, comprehensively weigh the factors that affect the appreciation of the real estate, and ensure that the invested real estate has the potential for appreciation in the future.

When choosing a house, you must be able to "look, smell, ask, and cut"

Housing selection is a very personal process, but there are certain commonalities.To sum up, it is to "look, smell, ask, and cut", constantly inspect the inside and outside of the house, and never rush to seek results and make rash judgments.

One, hope
Learn more about market conditions.First of all, at least understand the trend of housing prices and hot spots.For example, what is the recent rise and fall of house prices in your city, which areas rise and fall faster, which areas are slower, and which real estate sales are hot.Secondly, you need to know some big developers and projects.Generally speaking, the project quality of brand developers will be more guaranteed.Again, you must at least learn to read building brochures, sand tables, floor plans, and model rooms, so that you can look at houses with a more professional and practical perspective.

Second, smell
If you have time, go to the sales office.One advantage of going to the sales office is that you can know roughly how long it will take for the project to be completed, what stage it is now, and the surrounding transportation facilities.Go to two or three stores a week, and 8 to 12 stores in a month. In this way, you can shop around and make a more accurate decision, at least not too outrageous.Stay informed through multiple media.Usually read more newspapers, surf the Internet more, and get in touch with building advertisements on TV and outdoor media.Even if you don't have time to go to the sales office, it is a good way to learn about project information from the media.Today, with highly developed information, real estate has become an important pillar of media information and advertising. On the one hand, the media can grasp the macro development situation of the real estate market and judge its next trend more accurately; on the other hand, most real estate projects will be advertised through the media , Investors can learn a lot of real estate information from various media.

Three, ask
Good at asking questions in the sales office.When an investor chooses a property of his choice and comes to the sales office, he must keep a calm head when facing the enthusiastic salesperson.Ask as many questions as possible in the sales office, including the sales method, specific price, check-in time, check-in conditions, parking spaces, transportation, supporting facilities, shared stalls, apartment types, properties, etc., and do not miss every subtle question .

Fourth, cut
Visit the field.It is better to see once than to hear a hundred times, and no matter how much information you know, it is not as good as going to the field.The content of the investigation includes both internal and external aspects.Inside, it refers to the transportation, supporting facilities, and apartment types in the residential area, and it is specific to the details of the house’s waterproofing, corners, interior decoration and workmanship, lighting, walls, tea seats, kitchens and bathrooms.In addition, it refers to the supporting facilities such as transportation, education, medical care, commerce, entertainment, etc. outside the residential area, and even the distance from the residential area to the place of work.These can only be known by visiting the site in person, instead of listening to the developer's one-sided words.

As a real estate investor, no matter how big or small the investment ability is, you must carefully select and be cautious, and choose the most suitable housing for your economic situation through the method of "seeing, hearing, asking, and cutting".

How to determine the "worth" of a house

Real estate appraisers need to have rich experience and a high professional level.At present, real estate appraisers certified by the state seldom serve individuals.For ordinary house buyers, if you just want to make a rough assessment, you may wish to take two steps.

The first step is to determine the benchmarks for the evaluation.

Before starting the evaluation, buyers may wish to collect several recent transactions with similar locations and similar building structures, so as to have a general understanding of the market conditions.Of course, inquiring about housing advertisement quotations from large intermediaries is also helpful for understanding the market.However, the data that can be used as an evaluation benchmark must be the actual transaction price.

The second step is to consider the impact of the following three factors on the price.

(1) Housing factors.The depreciation period begins after the completion of the house. According to the theoretical depreciation rate, the depreciation period of the mixed first-class structure house is 50 years, and the annual depreciation rate is 2%. In addition, the old house is outdated in type and function, which is incomparable with the new commercial house , "Three small" sets of small halls, small kitchens, and small bathrooms will be deducted by 10%.In addition, the floor also has an impact on the price. If the 1st and 5th floors are the base price, the 2nd and 6th floors are -3%, the 7th floors are -5%, the 3rd and 4th floors are +3%, and if it is the top of the building, it is -5%. -5%; and -[-]% if there is no south-facing window.

(2) Environmental factors.Environmental factors are both natural and social, both large environment and small environment.In the same location, the community environment of old houses will be inferior to that of new residential areas, such as the layout of the community, facilities, greening, and the appearance of houses, etc., and the old houses will be greatly reduced.Another example is the social environment. In areas of the same land level, some are suitable for business, while others are suitable for living.There is also the residential structure and cultural atmosphere of the area.Supporting construction, etc. will have a greater impact on housing prices.No property management and non-independent closed communities are deducted by 5% respectively, and provincial and municipal key primary and secondary school districts are +15%.

(3) Psychological factors.People are generally unwilling to buy old houses if there is no great temptation in price or other considerations. If the price of old houses is not much different from that of new houses, there will be an insurmountable psychological barrier when buying old houses. The psychological factor is -8%. .

Now we give an example to verify.

The house is located: a small house in a community, with a building area of ​​51 square meters.

Land level: secondary area.

Housing structure: Mixed first class.

Set type: "Three Small" set type - 10%.

建筑年代：1988年，折旧期12年－（12×2%）＝－24%。

Floor: Seven floors in total, this room is located on the second floor - 3%.

Orientation: North-South.

Property management: non-community, no property management - 10%.

School district: key primary and secondary schools + 15%.

Psychological factors: -8%.

The price of local commercial housing is: 45 yuan/square meter.

(End of this chapter)