Chapter 43 Long-term and short-term investment also have a way

If you don't really buy and sell houses like vegetables and clothes, but use some spare money to buy one or two properties, and then sell them after the house price rises, you can only make a profit from the price difference.In the eyes of Wenzhou people, although this transaction is profitable, it is not desirable.Because this kind of price difference profit obtained purely by time or opportunity is really a waste of investment cost and fails to realize the maximum utilization value of investment cost. On the contrary, if you treat real estate investment as an ordinary business, calculate the investment cost, capital operation and circulation time, etc. in detail.Apply all the operating methods required for ordinary business operations to the real estate business, instead of simply waiting for house prices to rise, and you will find that the profits earned by the former are far greater than those of the latter.

People who treat real estate investment as ordinary business are Wenzhou people; investors who buy a house and wait for it to appreciate in value are ordinary people.The fundamental reason why Wenzhou people were able to create the "Wenzhou house buying group" that caused a sensation in the real estate market, and why people from other regions failed to produce such a big sensation, is that the two have different business philosophy. For real estate, Wenzhou people's business philosophy is: there are both long-term investment and short-term investment, and the two alternately echo and complement each other, ensuring the maximum profit of Wenzhou capital in the property market.

Long-term investment and short-term investment are the two most frequently used terms in the stock market.The so-called "long-term investment" means that investors will not sell the stocks they hold in the short term, and some shareholders even hold the same stocks for several years or even more than ten years.The so-called "short-term investment" refers to investing in the sale of stocks bought within a few days or even within the same day, so as to obtain income from price differences in a short period of time.The advantages and disadvantages of long-term investment and short-term investment are also obvious. If the former succeeds, the returns obtained are very enviable, but investors have to pay daunting hardships during the period; Short-term gains can also be very objective.All in all, both have pros and cons.

In the eyes of Wenzhou people, real estate investment can also be divided into long-term investment and short-term investment. Real estate for long-term investment is those properties with less risk and stable returns.For example, some homebuyers in Wenzhou will buy real estate and then rent out the property to obtain stable income.If they don't have time to manage it, they will entrust it to the developer or the agency company of the investment site to manage the leaseback to ensure that they can get regular and stable income.Long-term investment is an investment method that Wenzhou people came up with in order to avoid the risk of real estate investment. Although the return is small, the return is relatively stable.

Real estate for short-term investment generally refers to residential buildings.This is similar to the way ordinary people invest in real estate: buy real estate when the price is low, sell it when the price is high, and earn the difference.This investment method is relatively risky. When investing, you must choose a real estate to ensure that the selected real estate has a large value-added space.Therefore, some people in Wenzhou Real Estate Buying Group joked that short-term real estate investors are performance artists. They are full of passion in the real estate market, buy generously, and then aim at the right time to sell a lot. of.

Some people also believe that long-term investors are the real masters. They not only need to concentrate all the time to make up for the mistakes in the investment process, but also have a generous heart that can tolerate market vagaries. But in my opinion, no matter long-term investment or short-term investment in real estate, as long as it is managed in a proper way, huge profits can be obtained. A Mr. Guo from Yueqing, Wenzhou owns seven real estate properties in Hangzhou, Nanjing, Shanghai and Wuhan.Some of these seven properties belong to long-term investors and some belong to short-term investors. Among them, three properties in the cities of Nanjing and Wuhan belong to long-term investors, while the rest belong to short-term investors.All of them were purchased before 2005. When Mr. Guo withdrew all his funds from the real estate market in September 2010, Mr. Guo’s net profit in each of these seven properties was higher than that of the locals in these four cities. The profit that people get from real estate investment.

Maybe you think that Mr. Guo's success is due to his strong capital and earlier time to buy a house, so he can get a relatively large price difference, so he can get higher profits.This factor cannot be ruled out, but the important factor that makes him successful is the so-called long-term and short-term investment strategy. Mr. Guo only talked about one point: "There are many investors who invest in multiple properties like me, but the final profit is a little worse than mine. Why do I choose to invest in Nanjing and Wuhan for a long time? The two cities are relatively less developed, and housing prices fluctuate relatively little, so I slowly make profits through renting out. In Shanghai and Hangzhou, housing prices fluctuate relatively quickly, so I adopt short-term investment , buy when the price is low, and then sell when the two property markets are hot, so as to widen the price difference between them as much as possible. In this way, no matter in the long run or in the short term, my opinion The properties invested in are all profitable, avoiding risks as much as possible.”

It is a wise strategy to decide whether to take long-term investment or short-term investment according to the development characteristics of the city.However, the strategy of long-term and short-term investment is not limited to this aspect.Through my investigation and research on a large number of Wenzhou home buying groups, I found that Wenzhou people’s long-term and short-term investment strategies can be summarized into these three points: 1. According to the actual situation of your real estate, rationally choose long-term investment or short-term investment. The advantages and disadvantages of long-term investment and short-term investment are obvious.Whether you choose long-term investment or short-term investment, you need to analyze specific issues.

A senior investor from the Wenzhou Real Estate Group said: “If a property is a hotel-style apartment and the location is relatively good, then long-term and short-term investment are all right. You can also make a profit if you rent it out. If you resell it, the profit is not small. .If a certain property is just an ordinary residential building, then as a long-term investment, the rent is obviously limited. Instead of letting it take up funds and other fixed funds every month, it is better to take advantage of the good housing prices , sell it early, and then use the funds to invest in a more profitable project.”

This investor said one thing very well: "...Instead of letting it take up funds and wait for a fixed amount of money every month, it is better to sell it early when the house price is still good..." Capital gains profits through operation , which is a common economic law.When applied to real estate investment, it depends on whether the long-term investment is worthwhile.If the real estate you own is going to be rented out in the form of long-term investment, you have to carefully measure whether the money can be made faster.If it is not ideal, it is better to withdraw as soon as possible and make another plan.

In fact, whether it is long-term investment or short-term investment, the ultimate goal is to maximize profits and allow capital to obtain the highest return possible within the same period of time. This is the fundamental meaning of investment. 2. Keep a clear mind and act when it is time to act. For short-term investment, the most rare thing is to aim at opportunities, buy when housing prices are lowest, and sell when housing prices are high.These two points must be stuck very accurately in order to realize "buy low and sell high" and obtain the maximum profit.The fundamental purpose of many short-term investors' investment is to wait for the emergence of these two points.However, when the weather is unpredictable, if you encounter a special situation, it is best to act in time when it is time to act, so as to avoid risks as much as possible. When a community in Qinhuangdao was newly developed, Mr. Chang, the owner of Wenzhou, bought three houses.The three houses he chose were all close to the city center, and many people thought that he was going to use these three houses to make a fortune.Unexpectedly, in the past two months, he transferred it at a price slightly higher than the original price.Mr. Chang said: "I originally signed a deposit agreement with the developer. I originally wanted to transfer these houses as soon as possible after the housing prices went up, and get the price difference from the middle. Who knew that I met countless buyers but couldn't make a deal, so I just delayed it." Procrastinate. Now the developer has been urging me to sign a formal contract, and I don’t want to circle myself as a landlord. Now as long as I can make a little money, I will transfer it.” Real estate investment is all about profit. I believe that this kind of low profit is similar to selling, which is something that every real estate investor is unwilling to see, but it is actually a kind of wisdom to see the market situation clearly and give up in time when investing in real estate. 3. Seek professional help. If you are not sure how to match long-term and short-term investment to maximize profits, you can find some professionals. A Wenzhou old man in his 60s, when talking about his investment in real estate, introduced: "I only heard that investing in real estate is very profitable, but I don't know much about this industry, and I don't have much knowledge. Such a large sum of money I don’t know how to invest money, and I don’t know how to invest more cost-effectively. So some relatives recommended real estate investment consulting companies and investment consultants to me. These investment companies didn’t tell me how advanced investment theories were, they just asked me to pay some service fees, and then Helped me find a house, and helped me choose the right time to sell the house. As a result, although I knew nothing about the real estate business, I made hundreds of thousands of dollars. Now I can slowly explore by myself, and I probably know how to make money gone." Whether you choose long-term investment or short-term investment, and what kind of house you are going to choose, it is an essential step to seek professional real estate investment consultants, financial planners, negotiators, etc. for consultation at the initial stage of investment.Many home buyers in Wenzhou claim that they knew nothing about real estate investment at first. They either blindly follow relatives and friends to invest, or seek professional help, otherwise they don’t know how to start. As I said earlier, real estate investment is the same as general business investment. Both require a comprehensive and correct investment strategy, and there should be certain predictability of the market cycle, risks, and returns.Therefore, when one's own experience is insufficient, it is essential to seek professional help. Of course, every real estate investor's investment philosophy and investment strategy are different, not limited to the above three points.For long and short-term strategies, different people may use them in different ways.However, the ultimate goal of all Wenzhou investors is the same: to avoid risks and maximize profits.On this point, Wenzhou people who have been in the real estate market for many years can be described as experienced.If you are new to the real estate market and haven't figured out a set of methods and strategies that suit you, then you might as well try boldly according to the long-term and short-term investment strategies of Wenzhou people, and you may be pleasantly surprised soon.