Chapter 79: Managing Money (1)

(1) When is the right time to buy a house?

When my family bought a second house, I was responsible for choosing it, and I have been choosing it for five months, and I am deeply touched. Now I find that the history is strikingly similar, and I will talk about it with everyone.

In July 2002, I discovered that some houses that started construction in 1995 and opened at 12,000 yuan per square meter in 1997 were selling "tail houses" at a price of 6,200 yuan. The average price of a new house in the same area is 8,100 yuan.

Although the top floor of the house, which was built in 1995, is more than four meters high, and it is possible to build an attic on its own, the walls are already cracked and the concrete floor is rudimentary. In the end, I chose a new house with marble floor tiles in the corridor and bought it at a price of 8,915 yuan per square meter.

After that, the stock market was sluggish, and by 2005, our real estate was only 5,700 yuan when it sold the "tail house"!

Looking at the Shanghai and Shenzhen stock markets, the bull market that peaked in 1997 rose from 300 to 1,500, although the stock market hit a new high in 2001, and the property market also hit a new high, but the real estate that opened at that high point in May 1997 was sold until 2002, falling by nearly half of the price!

When the current round of bull market was from 1,000 to 6,000, the opening price of the real estate near my home was 31,000 yuan. My neighbor bought two or three suites that year, or participated in the purchase of the "tail house" of the real estate, and sold it for 20,000-25,000 yuan.

At that time, with a 20% down payment, if my family took out a loan to buy a house, I could buy two or three sets without repayment pressure, but unfortunately we were afraid of the psychological burden of debt, and we missed out on wealth!

Therefore, according to my experience, it is appropriate to buy a house after the stock market has been in a downturn for two or three years, that is, to buy a house when the Shanghai stock market is close to or breaks 2,000 points for the third time, just like around 2005, when the stock market is mostly below 5 yuan, and everywhere is 1 or 2 yuan, and even stock critics can't help but say, "Now it's gold everywhere"! I guess it was between June 2014 and June 2015.

At that time, as soon as you buy it, you will only see it go up but not down, and this is true for stocks, and the same is true for houses. Of course, high-priced junk stocks and "unfinished buildings" are still excluded!

Of course, you can easily make money from buying it since 2012. Moreover, there are good houses to sell at any time that can appreciate in value, especially for those who are in urgent need of cash, such as World Cup betting, sudden changes in family or career, and court or bank auctions, the key is to know the market well in order to find a property that can be invested.

Sometimes, just one property is enough to eat for yourself for a lifetime.