Chapter 2024 Ask for a monthly ticket for a house in short supply
"Do you make gold? It's still time? I remember London gold has already started to take shape?"
"Of course it's time, everything has just begun~"
"Well~ OK, follow your analysis, but I may withdraw funds at any time. Compared to the financial market, I am more optimistic about the real estate market~"
"Real estate? Of course, this is a good choice. To a certain extent, London real estate is more like hard currency than gold. For high-net-worth people like Mr. Yang, if there is no better financial management method, housing speculation is indeed the best way to preserve value or even increase value."
Yang Cheng smiled and said, "You are right~"
There are many myths about investing in and buying a house. For example, buying a house requires one-time cash, and buying a house has a low return. Buying a house is equivalent to working for a bank. But this is just a sour thing that a person says after eating a lemon when he has no money. An ordinary person suddenly gets rich overnight. Don’t think about starting a business, he will definitely lose you to death.
But there are also some considerations to invest in real estate. Why do many popular real estate cities in the world choose London, England?
If you ask this question to people in Xiangjiang, the answer is very simple. People in Xiangjiang love to invest and always look for various opportunities to increase their wealth. However, in the current environment, no matter whether they have more or less capital, it is becoming increasingly difficult to find suitable investment projects in Xiangjiang.
Xiangjiang's property price is so expensive that only a few hundred thousand capital can only sigh, even if investors holding millions of funds want to enter the market, there are many difficulties.
It is not easy to enter the property market in Xiangjiang now. First of all, the prospects are unclear. The mainstream awareness among the people is that housing prices will decline in the next few years;
Secondly, because ZF's hot targeting the property market has limited investors' time to hold goods to some extent, and the long holding time has greatly reduced the flexibility of investment, which has increased the risk of investing in buying a house in disguise. In addition, the tightening of mortgages has prevented property buyers from making full use of leverage to amplify profits.
Since Xiangjiang does not have many investment opportunities, it is natural to look around the world. We need to learn from Li Chaoren. They are very visionary and started a few years ago.
However, it is not easy to invest in places outside Hong Kong, because each place has its own set of guidelines, environment, customs, laws, tax systems, ZZ, etc., which are different from Hong Kong.
A set of ways to invest in real estate in Xiangjiang may not be completely replicated locally. Investing in real estate in other places must do your homework, otherwise it will be easy to lose your wife and lose your troops. Therefore, looking at global real estate investment, the UK has advantages in all aspects.
First of all, in terms of language. Although not everyone can speak fluent English, English has been more or less studied in school, and it is a bit basic, and it is already slightly better in communication. Even if you really don’t understand a single sentence, it is easy to find someone who understands English to help you. If it doesn’t work, it can be understood through online translation.
In addition, the UK is well-established, after hundreds of years of construction, the legal system and environment are quite complete, and the zhengzhou is also very stable. It has proper regulation of real estate-related systems and laws, and investors can receive sufficient legal guarantees.
Finally, due to historical factors, Hong Kong and the United Kingdom are closer to certain levels, which also allows Hong Kong people to integrate more easily when investing.
Furthermore, when many parts of the world are trying to crack down on overseas investors and push up the local real estate market, the UK ZF has not launched a policy so far to prevent overseas funds from investing in British real estate. The UK still welcomes foreign funds to come here to invest.
Therefore, among the people who bought real estate in the UK over the years, Chinese, especially Hong Kong people, have accounted for a large proportion.
This is also why fund managers are not surprised when they hear that Yang Cheng is interested in investing in the London housing market. In his opinion, Yang Cheng is also a Chinese, and his source of information must be inseparable from the Chinese market.
So the fund manager said, "The yield in the real estate market is no less than gold. Many people mistakenly believe that the appreciation potential of the UK property market is limited, but when you see the trend of the UK property prices in the past few decades, you will find that the UK property prices have been rising steadily.
During this period, investing in real estate in the UK can not only earn generous rental returns, but also make profits from the appreciation of housing prices. It is not what ordinary people think of just making rent but not making the price.
Even when it was baptized by the financial tsunami in 2008 and 2009, housing prices fell from highs by 20 to 30%, which actually only pushed housing prices back to the level in 2003 and 2004. The long-term increase in housing prices in the UK has not been broken and is still rising steadily.
Moreover, the real estate market is the foundation of the national economy, and real estate is the most important asset of most people and the source of their wealth.
To stimulate the economy that was hit by the financial tsunami, the UK ZF has also focused on the real estate market. In addition to reducing interest rates to historical lows in financial policies, reducing borrowing costs and attracting buyers to enter the real estate market, it has also launched many policies to support the real estate market.
Therefore, the rising trend of housing prices in the UK will continue, which is also a recognized thing in our industry.”
It's also amazing. Why has the property prices in the UK been rising in the past few decades?
In economics, the most basic theory is supply and demand. When the supply exceeds demand, the price will fall; on the contrary, when the supply exceeds demand, the price will rise.
As long as the supply in a local market is in short supply, housing prices will basically rise steadily, which is also a popular situation for investors. The most obvious example is Xiangjiang.
Why is the housing prices in Xiangjiang so high? It can be summarized in four simple words - asking for too much supply. Xiangjiang is originally a very small place, with 40% of the area being a country park. There are not many places available for building houses, and some of them are controlled by the chaebols. Therefore, the actual supply of buildings in the market is very limited, but they have to cope with the housing needs of 7 million people.
This situation where demand is far greater than supply explains why Xiangjiang's property prices have been going north in the past few decades.
Looking at the entire UK, only 6.8% of the land is developed. What is this? In other words, more than 90% of the British land is still in land that cannot be used for people to live and work.
In terms of land supply, the UK has the strictest land planning policy in the world and strictly regulates land use. If developers want to change land into land for building construction, they not only need to engage in long-term bargaining with ZF and submit detailed planning plans, but also have to pay huge compensation for changing land use. They may even encounter opposition from different groups. The whole process is both expensive and time-consuming, making it difficult for developers to quickly develop land and increase the supply of real estate.
Chapter completed!