Over the years, with the rapid rise of housing prices, real estate speculators have become famous all over the world. Everyone knows that real estate speculators make a lot of money, but they all speculate on new houses, and they must be backed by very strong funds. Never heard of speculating on old houses. Do not believe that my cousin did the opposite in the vigorous army of real estate speculation. He doesn't speculate on new houses at all, but hoards old houses, mainly old houses in old communities. Relying on this unique business, in a few years, he fully realized the freedom of wealth and became a big winner in the real estate trading market. Then why did he focus on the unique business of those long-term houses, and how did he achieve very high profits? Listen to me slowly.
Why do people invest in old houses with long houses?
My cousin told me that I couldn't embark on this road at first just because of my limited funds. At the beginning, I also wanted to invite some friends to raise funds to speculate on new houses, but after discussing with them, I felt that the funds they could raise were still too small, and there were many unpredictable variables in business partnership between friends. So he had a brainwave and felt that he didn't have much money in his hand, so he certainly couldn't fire a new house. Why not collect some old houses and try water first? But the old houses on the average floor are not cheap either. Relatively speaking, only those old houses with long rooms are cheaper, and their own strength can only afford such houses. So I tried to buy several sets first. In addition, the reason why he started with an old house with a long room age is the following factors besides financial reasons.
First, speculation in new houses requires abundant funds and fierce market competition.
My cousin told me that the general speculation of new houses needs strong financial strength as the backing. After buying a new house, it is impossible to sell it in a short time, because the house price will not rise very high overnight, and you can easily sell it and make a lot of money. It usually takes several years to reach your target price. So you have to have enough money to pay off the mortgage. At first, he had no strength. Coupled with the increasingly fierce market competition, the policy of introducing new houses can be said to be ever-changing, and if you are not careful, you may fall into crisis or even bankruptcy. So the idea of speculating in a new house is not realistic for him.
Second, the stock of older old houses is not large, and the transaction price is not high, which is not attractive to large funds.
With the continuous increase of urban construction, there are fewer and fewer old communities in the city, so there are not many old houses with longer rooms. Most people don't pay attention to this, which naturally has no attraction to well-funded real estate developers or real estate intermediary companies with good financial strength. Without these people, for my cousin who just started a business, competition does not exist at all, which means a little monopoly.
Third, compared with other second-hand houses, older houses are easier to buy and cheaper.
Old residential areas are generally built for a long time, and houses are prone to disturbing people such as roof leakage, wall seepage and wall cracking, which seriously affects normal living; If there are elderly people at home, going up and down the stairs is a problem; All kinds of new residential areas have complete facilities, beautiful environment, convenient transportation and complete supporting facilities, which are naturally more attractive to interested buyers. It is also the intention of many people to sell their old buildings for new ones. Once I know this information, my cousin will come to me, seize the owner's eagerness to sell the old house, and naturally get the old house at a relatively low price.
How to deal with the acquired long-term houses and old houses to achieve profitability?
Cousin will buy these buildings, after all, they will be realized in the end. Of course, it is impossible for all houses to make money in a short time. So under normal circumstances, he will take the following measures to deal with the old house he bought.
1. Resale.
This is what my cousin did with many old houses he bought. Not everyone can afford a new house when the price of the new house is twice or even several times higher than that of the old one. But housing is indispensable for everyone. For those who have rigid demand for home ownership but low income, buying a second-hand house is their only choice. Although the old houses in the old community look a little ugly, the geographical location of these houses is usually not very bad, usually in the city center, and some even in prime locations. So although the living environment is a little worse, its surrounding facilities are perfect. Hospitals, schools, shopping malls, banks and vegetable markets are generally not far away, so life is very convenient. Moreover, if you buy the top floors of these old houses, it is not only cheaper than other floors, but also has an extra activity space than buying houses on other floors. You can even build a simple house on the roof, which will inevitably lead to dozens of square meters of housing. Why not? You can also make full use of the roof to grow flowers and vegetables and raise chickens and ducks. As long as you don't disturb others, no one will care about you. So don't worry that even the top floor of the old house that looks less valuable can't be sold, and no one will buy it, let alone other floors. What the real estate speculators have to do is to consider how to sell the price higher! Under normal circumstances, it is easy to increase the price by several hundred yuan per square meter.
Second, it is used for renting.
For some old houses that no one buys for the time being, my cousin will rent them out. As we all know, many people need housing, but they can't afford a new house for a while, so they come to rent an old house to live in. As mentioned above, because many old houses actually have many advantages, people will naturally rent them. Cousin will carry out necessary maintenance on these old houses, and then rent them out to meet the minimum living conditions. Otherwise, others will see that your house is leaking and cracking everywhere, no matter how cheap it is. If there are key primary and secondary schools or hospitals near the community, then such old houses can't be rented out at all, and sometimes the rental price even exceeds the price of some new houses. As for how to achieve this effect, it depends on your own ability. Cousin traded the house rent for a house and saved money.
Third, keep it open.
After working in this industry for a period of time, my cousin has become familiar with the staff of relevant departments in the city and street communities. Therefore, in normal times, my cousin will be more careful, intentionally or unintentionally asking them which communities are about to be transformed or about to be transformed. If he gets the exact news, he will not sell the old houses in these communities, but keep them for demolition. This operation depends on vision and economic strength. In recent years, with the state's efforts to transform old urban communities, many old communities have disappeared, and the news that many people get rich by demolition has attracted attention in various media. Many old residential areas are either close to the city center, or in the traffic throat of the city, or in the bustling area of the city, and so on. Need to be demolished and rebuilt. Moreover, the compensation for demolition is not divided into floors, but only according to your housing area. If you are not in a hurry to cash out, if there is such an old house in the community, rent it out first and wait patiently for the demolition of the community. Once you get your wish, you will make a fortune. But this kind of operation has certain risks. If you are not sure or your economic strength can't keep up, generally don't take risks. Do it when you should, use the funds as soon as possible, collect more sets and buy more sets. Money can't be earned in a lifetime.
Fourth, the installation of elevators appreciates.
For some old houses with very good geographical location and various conditions, my cousin usually sets the price very high. If he can sell it, of course he will sell it in order to recover the funds in time. If he can't reach the price in his mind, he will hold it for a long time. If the transformation of the old residential area is hopeless in the short term, it can be combined with other owners to add elevators to the building. As long as it conforms to the current relevant policies and the community meets the conditions for installing elevators, it can be implemented. Once this thing is done, these old houses will appreciate in value, and some will become very popular. Because of the good location, not everyone likes to live in a big bungalow in the suburbs, but many people still like lively places. Of course, although there will be some trouble in installing the elevator, it will also increase the cost, but the wool is on the sheep, which is worthwhile compared with the appreciation of the house.
Why can't those old houses with long rooms be sold?
Many people may say that even new houses are not easy to sell now, let alone those old houses. Is it crazy to buy an old house instead of a new one? You know, there are hundreds of people, all kinds of people. Not all people who need to buy a house can afford a new house, and not all old houses are worthless!
For those real estate speculators who invest in old houses to make money, these problems you can think of have long been thought out and countermeasures have long been made. You have to believe this sentence, what you buy will never be sold! If they dare to buy an old house and make a fortune, they won't hit it on their hands! Why can't the old house be sold?
First, compared with new houses, these old houses are very cheap and easy to sell.
Although many people despise old houses, new houses are good for those with rigid housing needs, but the price is too expensive. So they had to turn their attention to second-hand houses. Old houses in second-hand houses are the cheapest, so many people can only buy old houses because of their income level and affordability. Although many old houses have been built for a long time and are generally used for a long time due to the limitations of construction technology and building materials, they are prone to cracks and the waterproof and heat insulation effect is weakened, which leads to the generally low prices of such houses. But it is very cheap! Money is the fundamental problem!
Besides, like the old house my cousin bought, it is impossible for him to raise the price when he sells it. For example, the market price of new houses needs 4000 yuan per square meter, so the price of many old houses may be around 2000 at most, and then the price will be increased by several hundred yuan. Some people will buy these low prices, so don't worry about not selling them.
Second, many old houses have a good geographical location and mature surrounding facilities.
Generally speaking, many old houses are located in the city center or busy areas, and the supporting facilities around their residential areas are very complete, so people's daily needs such as food, clothing, housing and transportation can be easily solved nearby. If there are well-known local schools, hospitals and other institutions around the community, it is even more icing on the cake. I believe everyone is familiar with the concept of school district housing. The old house in this community, even the top floor, will not affect its normal use as long as the price is reasonable and slightly maintained. Many people want to buy it.
Third, at present, many cities are transforming the living environment of old residential areas, and low-priced old houses naturally attract many buyers.
Although some old residential areas can't be demolished because of the high cost of demolition or other reasons, in recent years, many cities are transforming the living environment of old residential areas to improve the living environment quality of residents. Generally, the sewers in old residential areas will be renovated and maintained, the walls will be painted and beautified, the pavement of residential areas will be hardened, lighting facilities will be increased, and more green plants will be added. The implementation of these measures will greatly improve the environmental quality of the old areas and will naturally attract many home buyers.
As the saying goes, interlacing is like a mountain. Of course, it is impossible for outsiders who have never done this business to know the ropes. Therefore, don't take it for granted that buying an old house can't make a lot of money. If you think so, you are wrong. Of course, not everyone can do this business. Many times, it is easy to watch others get rich, but if you really start, you will encounter many unexpected difficulties. It is best to do what you can according to your ability. As long as you can do one thing well, no matter which industry, you can gain something through your own labor. It is always possible to live an ordinary life, no matter how tall you are.