In the current real estate market adjustment cycle, the price of housing prices is not only limited to small and medium-sized cities, but also the central areas of first-tier cities. Taking Shanghai as an example, the old and dilapidated housing prices, which once rose to more than 100,000 square meters, have now fallen to 60,000 to 70,000 square meters. This shows that the bigger the housing bubble in both large and small cities, the greater the possibility of the risk being burst. Families with two homes will not be able to avoid the constant distress of housing prices, and they will face a situation where their assets continue to shrink.
In addition, with the increase in housing prices, buyers will generally choose to wait and see, waiting for lower housing prices to enter the market. This will inevitably lead to a decrease in the volume of transactions in the market, which in turn will further weigh on house prices. For families with two homes, it may be difficult for them to liquidate their property assets in a timely manner and not be able to get rid of them quickly. In such a situation, they may face difficulties and not be able to stop their losses in time, which further exacerbates the financial pressure.
In the current environment of house prices**, many owners who own two homes may choose to sell their properties to avoid further losses. However, the number of listings in the second-hand housing market is now showing a surge. Especially after the implementation of the policy of "recognising houses but not loans" in first-tier cities, the number of second-hand housing markets has increased significantly. For example, the number of second-hand housing listings in Beijing has exceeded 150,000 units, and the number of second-hand housing listings in Shanghai has reached more than 180,000 units.
At the same time, due to the impact of the epidemic, many people's incomes have decreased, the demand for housing has been put on hold, and the number of people buying commercial housing is also decreasing. As a result, families with two homes may face a dilemma of cashing in as the number of second-hand homes flooding into the market has increased dramatically, buyer demand has dropped, and homes have become unusually slow to sell.
For families with multiple properties, the monetization of the house is a major problem. Without the ability to liquidate, they may have to face a longer holding period and have to bear daily expenses such as home maintenance costs, strata fees, etc., which further increases their financial burden.
As we all know, families with two or more homes face more expenses every month, in addition to the pressure of repaying the loan, they also have to pay various expenses such as property fees, heating bills, maintenance**, etc. Especially after experiencing the impact of the pandemic, when income is reduced or job losses are lost, the pressure of loan repayment has become more severe for these households.
Families with two or more properties face greater financial pressure than those who own only one property. And as house prices continue to rise, the mortgage value of housing assets may decrease, and with the various expenses that come with holding multiple properties, this pressure will continue to increase for many years.
For families with two homes, the future is uncertain. They may have to deal with a range of issues, including house prices**, shrinking assets, difficult to liquidate their homes, and rising pressure to own their homes. Therefore, in the environment of real estate market adjustment, families with multiple properties need to be fully prepared, avoid risks, and manage assets reasonably to get through this stage smoothly.
Li Ka-shing's prediction in 2018 has now been verified and is a true reflection of the current real estate market correction. For families with two homes, they can't avoid problems such as housing prices**, the difficulty of monetizing the house and the increased pressure to hold a house. In the face of such a situation, they need to look at and deal with it rationally, and do a good job of responding to it in various aspects. First of all, it is necessary to reasonably plan asset allocation according to its own situation and market trend, and avoid too large a range of assets concentrated in the real estate field. Second, it is necessary to raise awareness of financial risks and avoid excessive debt and excessive speculation. In addition, it is necessary to rationally plan household expenses, reduce unnecessary expenses, and improve one's ability to save. The most important thing is to stay positive and optimistic, believe that the market will improve in the future, and make informed decisions and actions based on that. Only in this way can we effectively deal with the current predicament and create better development opportunities for our future.