Li Ka shing is really right!Domestic families with multiple suites will face three problems

Mondo Social Updated on 2024-01-31

Li Ka-shing is a bigwig in China's business field, and he is also the most successful businessman in China's real estate industry. Not long ago, it was reported that Li Ka-shing sold his real estate at a 7% discount, which is equivalent to the property price seven years ago. This sudden move once again cast a shadow over the property market and made many investors feel that the situation is not good.

In fact, this is not the first time that Li Ka-shing has not been optimistic about the property market. As early as 2018, Li Ka-shing publicly stated that he believed that after so many years of real estate development, it would go downhill from now on, and many developers would face a "big reshuffle", so Li Ka-shing suggested that everyone should not speculate again.

But at that time, China's property market was still very hot, and housing prices were still rising, and Li Ka-shing's statement obviously failed to attract everyone's attention. But since then, China's real estate industry has really begun to continue to decline, and developers have also thundered because of financial problems, Li Ka-shing's accuracy of the property market also proves that he knows the property market well.

Because Li Ka-shing has a famous saying in business, that is, he will never earn the "last copper plate" in the industry. This means that when Li Ka-shing has a premonition of a crisis, he will often retreat in advance, and will not put himself at risk because he will make more money.

In the context of the continuous downturn in the property market, real estate companies will naturally choose to reduce investment to reduce risks. But for families who have bought multiple homes, they will be affected even more. After all, most families with multiple houses regard houses as investment products, and if real estate does not develop well in the future, then they will have to face three problems.

If you look closely, you will find that not only the third, fourth and fifth-tier cities are now small, but even the first- and second-tier cities have begun to decline in housing prices. Because China's current urbanization rate has slowed down, coupled with the change of population structure, there is a high probability that housing prices will continue to appear, which means that the value of the house will shrink, and families who hold multiple houses will naturally face the problem of asset depreciation.

Because for ordinary self-occupied families who only have one suite, the house price has little impact on them, so they need to pay attention to this issue.

In the past, many families used money to buy a house, mainly because the house could be sold in time even if it was not profitable, because there were many pick-ups. However, the current situation is that with the serious surplus of commercial housing resources in China, whether the house can be sold in the future depends on the location, otherwise only people are willing to buy it if they can reduce the price at a discount.

Because China's property market has always been "the more the price rises, the better it is to sell, and the more the price is reduced, the more difficult it is to sell", when the property market declines, it will be more difficult for both developers and speculators to realize.

In real life, although many families have multiple houses in their hands, they do not buy them in full, and the vast majority of people buy houses through leverage. In this case, if the household has an unstable income, then the pressure of debt will increase dramatically.

What's more, families with multiple homes not only have to take out more loans, but also have to pay other property fees, heating bills, and so on. It can be seen that in the case of house depreciation, families with multiple houses will not only face the shrinkage of assets brought about by depreciation, but also face greater debt pressure.

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