Buying a house is indeed a more cost-effective investment method after the stock market crash. Real estate investment is less likely to depreciate, has a stronger ability to resist risks, and is easier to get started than the stock market. But it doesn’t mean that you can make money by buying a house. Only by knowing how to choose a house can you really make money. This is a science and not everyone is good at it.

1. What kind of house can you buy to make money?

The standards of a good house, complete facilities, convenient transportation, comfortable environment, etc. are all necessary. Homes with these factors are easier to rent and easier to flip in the future.

In addition, what matters when investing in buying a house is the potential for future appreciation. The factor that most affects the future market price of houses is policy. Each city has its own development plan. Some houses that currently seem to be remote may soon increase in price in the future under the influence of policies.

2. Develop a suitable investment strategy

Some houses are easy to rent, but do not have much potential for appreciation, while other houses are just the opposite. Therefore, it is important to know your goals before investing. Conduct an inspection on the location where the house is located. The inspection content includes three aspects: first, understanding the future planning of the location where the target house is located; second, understanding the appreciation potential of the target house; third, understanding the type and demand of tenants, grasping rental fluctuations, and calculating annual rate of return.

3. You cannot put your eggs in one basket

Although there are investment prospects if you go against the trend, investors also need to consider the risks brought by the national macro-control. It is recommended that The total real estate investment ratio should not exceed 60% of the total personal assets. Eggs still cannot be put into one basket. At present, financial products are also relatively abundant, and investors can choose to diversify their investments.

4. Consider both the short-term and the long-term

House prices will not only rise but not fall, and opportunities for general growth in the property market will not always appear. Therefore, it is necessary to take into account the relationship between short-term and long-term, optimize the investment portfolio, and seize the opportunity to gain short-term benefits while ensuring stable income, so that you can be comfortable in the real estate market investment boom.

5. Learn to bargain when buying a property

During this period, real estate discounts and discounts across the country are more severe, and it is much easier to negotiate the price during discounts and discounts. For consumers, there are four bargaining opportunities, and investors must seize them and try to buy a house at the lowest price: First, at the beginning of the opening of off-plan properties, in order to attract home buyers, developers often have some discounts; second, When a house buyer makes a one-time payment, the discount space at this time is generally higher than the deposit interest rate and lower than the loan interest rate; the third is group purchase, because the developer not only saves publicity and agency fees, but also does not have to worry about the allocation of floors and orientations. Of course it will Sales at a profit; fourth, for buyers who have already bought a house, if you bring another customer to buy a house, some developers will also provide some preferential measures in return.

Which type of house investment has the highest return rate?

From the perspective of house type, small houses are the most suitable for investment, whether it is long-term or short-term investment. The total price of small apartments is lower, making them easier to buy and sell. Large apartments bear greater risks and will not be easy to sell in the future. Shops have great investment potential, high rates of return, and flexible methods. However, shops need to consider many comprehensive factors and bear business risks, so you need to be cautious when investing in shops.

Since it is an investment, you must understand a certain amount of real estate knowledge. If you can make money by buying a house as a novice, it feels like the end of the real estate market is not far away.

(The above answer was published on 2016-03-14, please refer to the actual relevant current house purchase policies)

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