With the aging of the population, the end of urbanization and the impact of factors such as the surplus number of real estate, it is expected that China's housing prices will show a trend of "stable and declining" in the future. Real estate is a major part of residents' total assets, and families with multiple properties will face the problem of continuous asset shrinkage. Available data show that real estate accounts for 77% of residents' total assets, while financial assets account for only 23%. This shows that Chinese residents generally regard real estate as an important way to preserve and increase value. However, with the property market continuing to be sluggish, families with multiple properties may be at risk of continued decline in the value of their properties.
In this case, it is recommended that families with excess properties should consider selling for cash in a timely manner. Against the backdrop of house prices**, it may be more advantageous to strike early. At the same time, according to the income of local residents, the real estate investment strategy should be reasonably adjusted to reduce the risk to the downward market.
In recent years, the situation of the second-hand housing market has been severe, and the number of listings has continued to increase. According to statistics, the number of second-hand housing listings in major cities has exceeded 100,000 units, including more than 150,000 units in first-tier cities such as Beijing and Shanghai. This shows that more and more landlords are starting to lose confidence in the future housing market.
The high probability of future housing prices makes many buyers have a wait-and-see attitude towards the market and are reluctant to buy second-hand houses. In addition, restrictions on developers' price reductions have been lifted in various places, and new homes are expected to be significantly reduced in the future. In the case of buyers who just need to buy new houses, the sales situation of second-hand houses is even more severe.
For families with multiple properties, this means they may be facing the dilemma of having a difficult house. Reduced liquidity in real estate can leave these families stranded and unable to liquidate their assets or adjust their investment strategies in a timely manner. Therefore, for families with multiple properties, it is necessary to carefully consider asset allocation and reasonably plan investment strategies to cope with potential liquidity difficulties in the future.
At present, most families need to rely on bank mortgages to achieve the realization of the home purchase process. However, after nearly three years of the impact of the epidemic, all walks of life in China are generally facing a recession. Whether it is self-employed or ordinary wage earners, there is a clear trend of declining income. At the same time, many households have lowered their expectations for future income growth.
For families with multiple properties, the pressure to repay their mortgage is much greater than that of a family with only one property. Once household income is significantly reduced, the pressure to repay the loan each month increases significantly. In addition, households with multiple properties will have to bear higher costs such as utility fees, heating bills, and maintenance**. In the case of lower income, how to deal with the continuous pressure of loan repayment has become a problem that multi-property families must face.
To sum up, families with multiple properties may face three important outcomes: continued housing prices, shrinking assets, difficulty in repaying loans, and pressure to repay loans. Therefore, these families need to carry out comprehensive asset planning and financial management, rationally adjust their investment layout, and find new ways to reduce risks and increase returns to meet possible challenges in the future.
Summary: With the changes in the trend of China's real estate market, Li Ka-shing has reached the trend of a major reshuffle of housing prices as early as 2018. Now it seems that his prophecy was very accurate. For families with multiple properties, the issues will be even more complex and severe. From shrinking assets and difficulty in repaying loans to stress on loan repayments, these outcomes require comprehensive planning and management by households. In the current economic environment, households are advised to carefully consider asset allocation to ensure financial security and look for new investment opportunities to balance potential risks and returns.