With the continuation of the trend of adjustment in the domestic property market, the myth of housing prices that once "will always rise" has been shattered. Many people perceive this change and even change their perception of house prices. Many ordinary wage earners are also gradually becoming more cautious when it comes to buying a home.
At the same time, they are also considering an important question, that is, in the next 5 years, if they have 1 million cash in hand, should they use it to buy a house to preserve their value, or should they deposit the cash in the bank? Which is better, "1 million real estate" or "1 million cash"? In this regard, some knowledgeable people gave the answer.
Challenges faced by domestic real estate
In the past 20 years, the reason why housing prices have been able to be fully advanced is mainly due to the continuous release of people's rigid needs driven by the acceleration of urbanization and the promotion of policy relaxation. However, the situation has changed significantly.
First, urbanization has come to an end. In the past few decades, China's rapid urbanization process has led to an influx of rural people into cities, driving up housing prices. However, this demand has gradually waned as urbanization has slowed.
At the same time, the effects of aging and declining fertility are being felt. These two factors have led to a decrease in the demand for housing among young people, which has further affected the trend of house prices.
Secondly, under the concept of housing not speculation, the real estate market has gradually returned to residential attributes, and its investment value has gradually disappeared. Over the past few years, the real estate market has overheated, with some developers and home buyers over-borrowing and investing, leading to a build-up of risk.
In order to control risks, the state has begun to strengthen the supervision of the real estate market, strictly control the financial risks of real estate, and crack down on property speculation. In this context, the investment value and money-making effect of the real estate market have gradually disappeared.
In addition, under the guidance of the path of de-risking and deleveraging, banks have also become more cautious in the allocation of real estate loans. In the past, banks tended to increase their lending to the real estate market in pursuit of profit and scale.
However, now that they are aware of the risks and financial problems that may arise from over-reliance on the real estate market, they have begun to guide banks to de-risk and deleverage. Against this backdrop, banks are more cautious in their lending of real estate loans.
At the same time, all localities are also increasing the construction of affordable housing and strengthening the supervision of the real estate market, which will help stabilize the development of the real estate market, but also further limit the space and money-making effect of the real estate market.
Therefore, it is unrealistic to invest all the money in real estate in the future, especially for most ordinary wage earners, even if there is 1 million, if not just need to buy a house, but for investment or improvement to buy a houseIf you don't have professional investment knowledge and don't have enough time and energy to track the market dynamics, you are likely to take a certain amount of market risk.
After all, buying a house is not an easy task, you need to pay a lot of down payment and mortgage loans, at present, many second-tier cities buy a two-bedroom house, and then renovate it, 1 million will be spent quickly, and for first-tier cities, 1 million may not even be enough for a down payment, which may be a heavy burden for many wage earners. In addition, the liquidity of the property is poor, and it is difficult to liquidate, and it may not be possible to obtain funds quickly in an emergency.
Factors for the depreciation of cash
We have always regarded cash deposit in banks as a safe and sound way to invest, however, in recent years, the deposit rates of major banks have been declining, and even the interest rates on 3-year and 5-year fixed deposits are below 3%. Against this backdrop, keeping cash in a bank may seem safe, but it is not a complete protection against inflationary pressures.
Inflation refers to the persistence of the aggregate level of goods and services, and we live in an era in which inflationary pressures never seem to have left us. Inflation is everywhere, from everyday food*** to fluctuations in the housing market to wage growth that can't keep up with prices.
Under inflationary pressures, interest rates on bank deposits may not be able to keep pace with prices**. For example, if the interest rate is lowered by 1%, the price level may not fall by 1%, or may even remain unchanged, which means that the real purchasing power of deposits is gradually decreasing.
Therefore, if there is 1 million cash, it seems safe to deposit all of it in the bank, but in fact, the depreciation pressure is huge. We need to look at the issue of cash holding rationally and make reasonable investment decisions based on our actual situation.
Who is better with 1 million property or 1 million in cash?
So, in the next 5 years, how should we choose, whether to hold 1 million real estate or 1 million cash? Actually, there is no absolutely right answer to this question, and there is no absolute good or bad one.
Because it depends on your personal circumstances and financial goalsFor many salaried people, the main purpose of managing money is to fight inflation. In this case, on the basis of capital preservation, it is best to diversify investment, which includes real estate, financial products, physical business, investment individuals, etc.
1.Hold the property according to the actual situation
First of all, we need to be clear about the fact that no matter how favorable policies are introduced, house prices will not be able to soar as in the past. The country's policy orientation is to stabilize the market and avoid the bubble from expanding again.
Therefore, it is important to choose the right city first, and pay attention to the location, quality and relatively new age of the house. The quality of the house directly affects the value and liquidity of the house, the quality represents the durability and living comfort of the house, and the age of the house is directly related to the maintenance cost and future appreciation potential of the house.
Secondly, for owners of multiple homes, now is the time to consider selling their excess properties. Because with the gradual implementation of the real estate tax, the cost of holding a home will be higher and higher in the future, which will undoubtedly put more pressure on the owners of multiple homes. If you don't make a decision at this time, you will face even greater losses when there is a sell-off in the market and house prices depreciate further.
In addition, we need to consider the risk of holding the property for a long timeBecause the property market is not always stable, in the event of economic fluctuations or policy changes, house prices can be substantial**. Therefore, it is necessary to observe the dynamics and wind direction of the market at any time, and try to predict the future market risks and uncertainties in advance.
2.Diversification of cash
For the cash holdings, in the face of inflationary pressure, we need to re-examine our financial strategies and develop a suitable financial plan according to our financial situation and risk tolerance to achieve long-term growth and preservation of wealth.
For example, we can consider putting some of our cash into low-risk products such as bank fixed deposits, currencies** and Treasuries, and the other part into slightly riskier investments such as hybrid** or **, which can diversify risk and maintain some returns under inflationary pressure. In this process, we also need to maintain an eye and understanding of the market and adjust our investment strategy in a timely manner.
In addition, investing in your own skills is also part of diversification. In this era of knowledge economy, people with multiple professional skills tend to be more competitive.
Not only do they have an advantage at work, but even if the economy is bad, people with multiple professional skills don't worry about losing their jobs. This type of multidisciplinary talent is highly sought after in today's society because their skills can be adapted to a variety of work environments and needs.
In short, in the next 5 years, for most ordinary wage earners, the choice between holding property and cash will not be an either/or issue, but a trade-off and trade-off, as well as a diversified investment strategy. In the face of housing price fluctuations, we need to weigh the risks and returns according to our own situation, and make the most suitable investment decision for ourselves.
Diversify your investments when holding cash, and invest not only in financial products and physical businesses, but also in improving your competitiveness, a strategy that is not only suitable for individuals, but also for businesses. For enterprises, they can diversify industry risks and improve their ability to resist risks by diversifying their investments. Do you agree with that? Agree to like!