Real estate leverage was once a legal tool for getting rich, but unfortunately, times have changed.
Many people became wealthy during the golden age of real estate, represented by the speculator Ou Shen, who transitioned from a salaried employee to leveraging to speculate on housing, and then to financial freedom, developing very quickly.
His leverage is to find ways to maximize it, such as borrowing all the money to buy a house, using the purchased property as collateral, and continuing to make down payments on several other properties.
During this period, various houses were used as qualifications to apply for credit cards, obtaining dozens of them, and then using all means to accumulate large amounts, all of which were used to swipe each other and pay each other back.
In the end, some estimate that his leverage reached as high as hundreds of times. His strategy was indeed aggressive during the bull market, transforming him from a nobody to a billionaire in just a few years.
It was really terrible during the downturn; not only might the credit card not be able to withdraw money, but if the mortgage cannot be repaid, it might be subject to foreclosure. In fact, during a downturn, the house may still require early repayment (mortgage loan), etc.
Now, he is still talking about houses, and his career is still focused on researching houses, but both the speed of making money and the difficulty of making money are completely different from the past. His reputation has also been disliked by some due to certain flashy operations.
Here it also gives people an insight: trends and opportunities are the key to turning things around. When trends and opportunities are gone, the harder you work, the more unfortunate you become; when trends and opportunities arise, if you dare to bet, you will win...
It seems that the current cryptocurrency market is not very suitable for big bets?
Let's talk about the leverage of houses again. In hindsight, is this the only high leverage allowed by the state? Everyone can use it, it never gets liquidated, and the fees are not high. This is indeed an invincible tool.
Imagine, if years ago in Shenzhen, you saved 2 million yuan through work and bought a loan house for 10 million yuan, which eventually appreciated to 30 million yuan when sold, making a 15 times profit, better than anything else. The key here is that the 2 million yuan principal leveraged 10 million yuan in assets.
But there are many points in this. 1. Do you understand how to use leverage? For example, judging that the real estate market is about to explode. 2. Is there cash flow to maintain leverage? 3. After the price rises to a certain level, would you be willing to close your position and secure your profits, then rent a house to live in? 4. Do you know any places where houses are not expensive and have space?
It's a pity that it seems impossible to find such good leverage like the mortgage loans from back then anywhere in the world now. For example, with a mortgage, even if housing prices drop, there's no need to make up for the funds; you can just continue to repay slowly, and there is simply no concept of liquidation.
A 30-year loan, considering the issuance of fiat currency, can be regarded as the interest paid over 30 years being negligible. However, the ideal premise is that the house appreciates in value, and one needs the house as a hedge against asset types.
The current trend is that houses in the country are not viable anymore; the only uncertainty is when the core CBDs in places like Shanghai and Shenzhen will hit the bottom. Will there still be opportunities for them in the future?
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Real estate leverage was once a legal tool for getting rich, but unfortunately, times have changed.
Many people became wealthy during the golden age of real estate, represented by the speculator Ou Shen, who transitioned from a salaried employee to leveraging to speculate on housing, and then to financial freedom, developing very quickly.
His leverage is to find ways to maximize it, such as borrowing all the money to buy a house, using the purchased property as collateral, and continuing to make down payments on several other properties.
During this period, various houses were used as qualifications to apply for credit cards, obtaining dozens of them, and then using all means to accumulate large amounts, all of which were used to swipe each other and pay each other back.
In the end, some estimate that his leverage reached as high as hundreds of times. His strategy was indeed aggressive during the bull market, transforming him from a nobody to a billionaire in just a few years.
It was really terrible during the downturn; not only might the credit card not be able to withdraw money, but if the mortgage cannot be repaid, it might be subject to foreclosure. In fact, during a downturn, the house may still require early repayment (mortgage loan), etc.
Now, he is still talking about houses, and his career is still focused on researching houses, but both the speed of making money and the difficulty of making money are completely different from the past. His reputation has also been disliked by some due to certain flashy operations.
Here it also gives people an insight: trends and opportunities are the key to turning things around. When trends and opportunities are gone, the harder you work, the more unfortunate you become; when trends and opportunities arise, if you dare to bet, you will win...
It seems that the current cryptocurrency market is not very suitable for big bets?
Let's talk about the leverage of houses again. In hindsight, is this the only high leverage allowed by the state? Everyone can use it, it never gets liquidated, and the fees are not high. This is indeed an invincible tool.
Imagine, if years ago in Shenzhen, you saved 2 million yuan through work and bought a loan house for 10 million yuan, which eventually appreciated to 30 million yuan when sold, making a 15 times profit, better than anything else. The key here is that the 2 million yuan principal leveraged 10 million yuan in assets.
But there are many points in this.
1. Do you understand how to use leverage? For example, judging that the real estate market is about to explode.
2. Is there cash flow to maintain leverage?
3. After the price rises to a certain level, would you be willing to close your position and secure your profits, then rent a house to live in?
4. Do you know any places where houses are not expensive and have space?
It's a pity that it seems impossible to find such good leverage like the mortgage loans from back then anywhere in the world now. For example, with a mortgage, even if housing prices drop, there's no need to make up for the funds; you can just continue to repay slowly, and there is simply no concept of liquidation.
A 30-year loan, considering the issuance of fiat currency, can be regarded as the interest paid over 30 years being negligible. However, the ideal premise is that the house appreciates in value, and one needs the house as a hedge against asset types.
The current trend is that houses in the country are not viable anymore; the only uncertainty is when the core CBDs in places like Shanghai and Shenzhen will hit the bottom. Will there still be opportunities for them in the future?