[Blogger friends say]The legendary way to get rich by buying a house-Zhifan｜ Apple Daily

A photo circulated on the Internet, the content read: “Why do you want to buy a house? The deepest routine in history, you deposit money in the bank, if you don’t buy a house, your deposit will be lent by the bank to others to buy a house, and finally you live in. You buy back the house with your money, take your rent, and use the money you paid for the rent to repay the loan.”

The content is very reasonable, and it is what has happened in the past at least 12 years. The success of home buyers really depends on this method. Hong Kong properties have made many people rich. But after reading it, I want to add a few points.

This routine is a little bit short, but why at least twelve years will work, because interest rates and silver paper depreciate. If the Treasury bond interest rate returns to the high interest rate of 15% in the 1980s and the mortgage interest rate reaches 20%, it is believed that depositors will win. However, the value of silver and paper has depreciated over the years. Today, I borrowed 5 million. The 5 million repaid after decades is nothing. The benefit of silver paper devaluation is on the debtor’s side. Under the zero-sum game, the value is lost from the “lending the money.” , These are also the power of this routine.

Can this routine continue? In fact, risks are not mentioned here. The only advantage of “lending money to one party” is the consideration of risk factors. Those who ask people to borrow money need to bear relatively large risks, including substantial interest rate hikes, property value declines, rental market problems, poor business, deflation, etc. These years have succeeded because these potential risks have not occurred.

Rental properties can also be regarded as a business, but in the residential environment of Hong Kong, due to the long-term imbalance between supply and demand, this business is a profitable business in disguise. Indulge in debts on a stable and profitable business to double the profits and become a winning routine. If you put it in other regions or other businesses, I’m afraid it won’t work. In fact, this approach has begun to cause problems in non-residential properties. Since last year, Hong Kong’s economy has experienced negative growth, the unemployment rate has soared, and ground shop or office owners have begun to feel pressure. It is unknown whether these negative factors will extend to the property market in the future and disrupt this routine.

Zhifan

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