Hello everyone, I am the sweeping monk! I seriously want to say something harsh, and I will bet hundreds of thousands of fans to listen! Even if the Federal Reserve cuts interest rates in 2024, housing prices will be like onion prices! It will fall by at least half, or even 90%! Therefore, ordinary people should never buy a house because if you buy it later, it will be much cheaper! Remember! Anyone who can say this kind of thing has either never bought a house or is trying to trick you into paying attention! Then we have to congratulate such people and let them continue to live in their own world! But if you want to make a lot of money by buying a house today, you must remember that there are three types of people in this world , and they all have different perspectives on investing in real estate! So whoever you choose to make yourself become will be the result you get! The first type is called real estate speculators! The meaning of real estate speculation and stock speculation is the same , which is to make money quickly through the price difference! In other words, most people understand that a house worth 1 million US dollars has increased to 2 million US dollars! Then I'll make money! If 1 million drops to 500,000, then I will lose money! For this kind of people, they are extremely concerned about short- and medium-term housing prices because their goal is to make money and run away. When buying a house, they may not even look at the house and then buy it directly! Before the 2008 financial crisis, most people in the United States were this kind of real estate speculators! Because at that time even beggars, people who were penniless and without any work, could get loans from banks! Then when everyone has several or dozens of houses in their hands, housing prices will continue to skyrocket! The banks in the United States can continue to borrow money and collect interest. As a result, the housing price bubble bursts. All the real estate speculators who can go bankrupt are the lucky ones , because more and more people commit suicide by jumping off buildings! And what about the banks that lend them money? These debts have been sold long ago and received large amounts of government funding! Soon, in order to save the housing market, the government printed a large amount of US dollars! These bankers will continue to make more money! But after this incident , governments around the world stipulated that bank loans must be subject to strict asset assessment! To put it simply, if you want to borrow money from the bank to buy a house today, you don’t just have to say you want to borrow it, they will lend it to you! They look at your salary, your assets, your age, etc. The threshold for borrowing money is high , so there have been a lot fewer real estate speculators in recent years! Most of them are nouveau riche, rich second generation, small bosses or some investors who speculate in stocks, etc.! In the stock market, I belong to the first type of person! Stock traders! As long as you do good risk management, you can indeed take advantage of the high liquidity of stocks and make money by buying and selling them! But when it comes to real estate investment, I belong to the second type of person, that is, an investor! The reason is very simple. First, every time you buy or sell real estate, there are heavy taxes and commissions from real estate agents! After 2008, it became difficult to get loans all over the world , and many places had policies to restrict real estate speculation , such as purchasing quotas. You could only buy one unit per person! Or it may be stipulated that you are not allowed to sell in the short term or you will have to pay heavy taxes, etc.! So some politicians will say that houses are not for speculation! But this is interpreted as the government cracking down on housing! Then house prices will fall! Actually no! Because for us investors, houses are for long-term investment! The so-called investment is a plan. Whether I am buying stocks or buying a house, I have a plan! Just like fighting, I must advance to attack and retreat to defend! The Federal Reserve raised interest rates today, but house prices do not rise or even fall. What should we do? Many people say that the house can be lived in by oneself! Then this is not called defense because you still have to pay monthly mortgage payments every month and when interest rates rise, your monthly mortgage repayments and pressure will increase! And the house prices have dropped a lot on the books! You are still stuck for this behavior! What we investors do is to find houses that are cheaper than the market price first when everyone is pessimistic and fearful about housing prices , and then bargain down the houses that are originally lower than the market price to make them even cheaper! Then buy! For example, a $1 million house sells for $900,000 when the economy is bad! Then we cut it to 800,000! So did we save 200,000? This US$200,000 is our profit cushion! What does that mean? First of all, I might have to pay 300,000 as a down payment for a house worth 1 million ! Borrow 700,000 from the bank! So now that the house price is only 800,000 , if I still pay 300,000 down payment, do I only need to borrow 500,000 from the bank? So, let me ask you, I originally wanted to borrow 700,000 from the bank, but now I only need to borrow 500,000 . Will my monthly repayments be more or less? The less you borrow, the less you have to pay back! So it’s important that you remember this first! We investors must have bought houses when house prices fell! OK! And the second point is that after our investors buy a house, they basically won’t sell it in the short to medium term! Because what we earn is not the money we sell after the house price rises , but the passive income brought to us by the monthly rent! In the previous video, we briefly mentioned how the rich plunder the labor force of most people? The first is to do business and let employees make money for us! The second is to make money from retail investors in various speculative markets! And third, which is my purpose of investing in real estate, is to collect rent and let employees return all the money they earn back to us! Therefore, many people misunderstand us and think that we are mindlessly bullish on housing prices! actually not! We want house prices to fall more than anyone else! Because I can buy a house at a cheaper price and rent it out! Just like playing a game of Monopoly! We’ll talk about the details later! The third type of people are ordinary people who account for 80%. They have a rigid need to buy a house and are always wandering between buying a house and renting a house! Let’s rent a house, but I think it’s not worth it because once you pay the monthly rent, you can’t get it back! Buy a house. You may not have enough budget , or you may be afraid that the price will fall as soon as you buy it. You may also be afraid that you won’t be able to afford it after you buy it. You don’t want to carry a mortgage loan for the rest of your life! So this kind of ordinary people can be divided into several categories , but this may offend many people . I might not have said it, but I know that if I don’t say it, people will not be able to see the truth! I also hope that my brothers and sisters who support me can like and support me! The first is people who can’t afford a house in their lifetime! This kind of person likes to tell you the news that house prices are going to collapse! It’s very simple. Anyway, they can’t buy and can’t afford it , so they feel most comfortable watching others lose money. So they often blame society and spread rumors that the housing price bubble is about to burst. Many people will have negative equity, etc.! This way they can find their self-worth because if everyone has no money, then everyone is equal! This is only fair! The second type of ordinary people, and the people for whom I most hope this video can be useful, are those who regard buying a house as their biggest dream in life. They usually buy a house to live in! They may have saved for most of their lives, just enough to buy a house! Buying a house may be the biggest investment in their life for them! This type of people are generally middle-class people who work hard and hope to live a normal life! But this kind of people are the worst, because they are the most easily affected! First of all, they may follow people who have no money to buy a house and complain that the house price is too high. They hate the real estate speculators for raising the house price so high, which puts them under great pressure to buy a house! But deep down in their hearts, they want to become real estate speculators. They hope that after they buy it at the cheapest price, the house prices will continue to skyrocket, making other people unable to afford it! In this way, not only do they have their own house , but they can also use this house to rise to a higher level! But people with this mentality basically cannot buy a house! It's very simple. As house prices rise, they find it too expensive and dare not buy it! They are even more afraid of house prices falling. They are afraid that they will fall even worse after they buy it, and they are afraid that it will be too expensive for them to buy, so they dare not buy it! Some of these people may be forced to buy a house to live in because they want to get married, have children, etc. In the past few years, housing prices have soared. So they made a lot of money by being lucky! But when the Federal Reserve raised interest rates, housing prices stopped rising and even adjusted slightly! They are afraid! Then they were led by so-called real estate experts who could not afford to buy a house or who just wanted to attract traffic and deceive attention. They were frightened, so they sold their houses when house prices fell! As a result, not only did you lose money, but you may not be able to buy the house back in your lifetime! Then you must figure out from what angle you stand when looking at housing prices, so that we can communicate! Because when we look at problems, we need to see the underlying logic behind them and then choose the information that is beneficial to us! If you hope that you will never be able to afford a house in your life , then you might feel a little better if you go over and listen to people who can’t afford a house analyze the housing prices for you ! And here, I just want to share without reservation the little-known thinking of real estate investors and review my own real estate layout in 2023! The most important thing is to tell you the impact of next year’s interest rate cut on housing prices, as well as my plan! As an aside, the previous video predicted that the Federal Reserve might cut interest rates in 2024, but that night it was announced that there was a high probability that interest rates would be cut next year! It was only last month that it was said that it was impossible to cut interest rates! But heroes don’t mention their bravery in the past. If you haven’t watched it, wait and review it slowly! Today I just want to tell you not to miss the last content! Because the gold content is extremely high! This channel is dedicated to cultivating bosses, investors, and wealthy people. If you don’t want to miss more useful information in the future , you can consider subscribing to my channel and turn on the little bell! First of all, when house prices fall, it is the seeding period for our investors. We can buy more houses at lower prices and rent them out! Many people think that the return rate of buying and renting out a house is very low, right? For a 1 million house, the annual income is 30,000, which is indeed very low! Because the return rate is only 3%! But who would use 1 million to buy a house worth 1 million? I might borrow 700,000 from the bank and pay 300,000 myself. In other words, if I invest 300,000, what is the rate of return on the 30,000 that I get back in one year ? That’s 10%! And what is the current situation? After the Fed raised interest rates, housing prices adjusted! Then everyone is afraid to buy a house , or some people are frightened into selling their houses. Many people want to rent out their houses! I have said in my previous video that landlords will pass on the risk of interest rate increases to tenants. Some people don’t believe it. Then you can look at how much rents have increased in Taiwan, Hong Kong, and other places! That is to say, the house price in some places dropped from 1 million US dollars to 800,000 US dollars. Then you just have 240,000 US dollars that can be used as a 30% down payment . At this time, the rent has increased from 30,000 US dollars a year to 30,000 US dollars a year. 3 , then the rental return will increase from 10% to 13.75%! Take the house I bought in Kai Tak, Hong Kong two years ago as an example. When the Federal Reserve raised interest rates, I rented it to a Korean and I charged an extra $3,000 a year! So it’s very simple that our investor’s strategy is to buy undervalued houses when house prices fall! We are the ones who want house prices to fall the most. Many landlords hate us because we are the toughest bargainers! So in 2023, I have been paying attention to Taiwan’s housing prices and plan to build a few houses in the Egg Yolk District! As a result, house prices increased this year instead of falling. I was very disappointed! You will find that those who predicted that house prices will fall are gone at the end of the year! In fact, if a person says that predicting house prices does not come back in the future, there is something wrong with his head! They don't need to be responsible! He himself may not be able to afford a house! So I regret not buying a house in Taiwan this year! But I paid attention to houses in Hong Kong and Mainland China! At the beginning of the year, I bought a house and a parking space in Hong Kong for my parents! Then in the middle of the year, when Shenzhen in mainland China was experiencing its most extreme price decline, I tried my best and bought a set! In this December, because Hong Kong lowered the threshold for buying a second home, I paid US$100,000 in taxes and bought another house! This year I invested a total of 4-5 million US dollars in real estate, including taxes and real estate agency commissions! I don’t want to show off. Anyone who has known me for a long time knows that I don’t get attention by taking photos of luxury cars and mansions. I think showing off will only attract hatred! My purpose for doing this is simple! I just hope that I can responsibly prove to you brothers and sisters who trust me and want to be investors that I have also put my money into it! What we investors have to do is to buy high-quality real estate at the bottom before the interest rate cut in 2024! Some people will say, how can you buy a house without money? Eh! Have you ever seen an aunt who sells vegetables and sweeps floors and owns several houses? Look at this news again. Do you still think they make money by selling vegetables and sweeping floors? You may have read more books than her, but with the money you earn, you can save money on food, drink, let alone a better house. You can't even afford a toilet. Soul Torture, are you willing to do that? I tell you! What really makes the aunts wealthy and free is not the jobs they use to kill time sweeping floors and selling vegetables , but the stocks they seize the opportunity to invest in! At this time, you may be thinking that they are all just lucky because you see on ig that all your friends playing stocks around you are losing money, right? I tell you! This is because most people don’t know that they have been playing a game of losing more and winning less in the stock market, which is the opposite of buying a house! Because three-quarters of the time it will be difficult for you to make money or even lose money . They don’t know whether choosing the right stock that has skyrocketed has anything to do with whether we have studied finance and whether we can read financial reports. How long will it take? Watching the market and so on, it doesn’t matter at all! Rather, we need to play a long-term profit-making game like a casino where you lose a dollar if you lose and make a hundred million if you win! So if you want to get rid of the endless reincarnation of working, if you want to become my disciple and learn the automatic stock trading system, I have recorded the mental techniques and techniques needed to get more than 70% return on buying stocks this year in a 2023 book worth 1,000 US dollars. Inside the brand new stock investment class , but today if you have a subscription and likes , you don’t need to spend 1,000 US dollars. You can watch it for free and the registration link will be removed immediately , so you can immediately click on the first link in the video description column. Sign up! It depends on whether your hand speed is fast or not! So what will happen to house prices when the Federal Reserve cuts interest rates in 2024? Don't worry! I have to make sure you understand a concept before I can continue! After 2008, when a bank gives you a loan, you need to pay a down payment first, that is, a down payment! For example, for a house worth 1 million, you have to pay 30% of the down payment yourself, which is 300,000! After you pay the 300,000, the bank will lend you the remaining 700,000! What does this 30% down payment mean? It means that the 30% drop in house prices today is borne by the people who buy the house, that is, you! It has nothing to do with the bank! When a house worth 1 million dropped to 700, did the bank lose money? No, because you just lost your 300,000 down payment! But what if house prices continue to fall? The bank will collect debt from you, which is called Call Loan! Let you return the 700,000 he lent you! At this time, you may have used all your family’s savings to pay for this down payment, so not only do you have nothing! You still have to pay back 700,000 to the bank, what will you do? Directly cut off the payment and not pay it back! OK! This will cause the bank to have bad debts and the bank will have no choice but to auction the house at a low price! What will happen if the more people cut off their mortgage payments, the more bad debts the bank will have , and then there will be a lot of cheap houses for sale on the market , which means the supply will increase? House prices will drop another 4-50%! This in turn causes more people to cut off their loans and the bank's bad debts to increase , so the bank can only find a way to get back the money it lent! In fact, there is nothing you can do because the loans that borrow the most money from banks are not loans for ordinary people to buy houses! But it’s money for companies to do business! Especially listed companies use their stocks as collateral to borrow money from banks. If the company still fails to repay the money, it means that the capital chain is broken! Then it may go bankrupt or be acquired! Then if the money is not paid back, the banks will sell their mortgaged stocks, causing the stock market to crash! The result will be like 2008 when your company goes bankrupt, you lose your job, and you can't find a job. Then it's not a question of whether the house price is expensive , but a question of whether you can eat and survive! This is called financial systemic risk! It is equivalent to the entire financial system crashing! Collapse! You think everyone will die together , but on the contrary, when something goes wrong, the government only saves the companies! If you look at the epidemic, most of the government's interest-free loans and even direct subsidies were given to enterprises! And bosses with financial intelligence will have reserve liquid cash or, like me, they will arrange gold and Rolex as assets that can be sold! These will be discussed in the next issue! So don’t just say that house prices plummeted and collapsed just because you didn’t buy a house, because if it really happens, the people who are not doing well are often the people who can’t afford a house! The 2008 financial crisis was the result of these people! Now here’s the key point, who sets the minimum 30% down payment for home buyers ? It’s the banks and the government! The primary task of a country's government is to avoid this kind of financial crash! Because when the opportunity arises, the people’s livelihood will be in dire straits! So today, if the minimum down payment in your place is 30% , it means that banks and the government estimate that house prices in your place will only fall by 30% at most! The smaller the down payment you have to pay in your place, the more confident the government and banks are in the housing prices in your place! So if house prices in a place where you need to pay 30% down payment now fall by 20%, then you can probably guess that the government will rescue the housing market! This may be the lowest price! Why does a person become a leek? It's simple, because "the news has said it", "experts have said it", etc. can make them lose any logic and rationality! Remember! What adults need is logic, only children need this kind of emotion. We never predict housing prices! But we will predict the consequences of rising and falling housing prices! If the Fed cuts interest rates, it means they will continue to turn on the money printing press! Our banknotes are starting to become less and less valuable again! So back to the problem, hoarding money will become the stupidest thing in the world! Today you have 100 million in banknotes but you can’t use them, you can only put them in the bank! As a result, you die and will be impoverished for the rest of your life! But today you have several large villas worth 100 million, one of which you can live in and enjoy yourself, while the others are not sold when it comes time to collect rent and wait for the money to be spent. They are used as mortgages to borrow money to spend! Which one do you think is the real wealth? So at this moment, smarter people have become enlightened and realize that houses or high-quality assets are the real wealth! Banknotes are just waste paper! For us investors, selling a house is equivalent to turning assets into waste paper, which is a very stupid behavior! When we wait for the money to be spent, we can put the assets as collateral! But we never sell! We regard the house as a lifelong wealth. What we save is not money, but the house that lasts. The more we save, the more we will get! Unless house prices may collapse , the rise or fall of house prices has nothing to do with me. This is the thinking of investors! When investing, we first want to go down, and then we want to go up! If it falls, we can buy it cheaper and rent it more expensively! If the price goes up, we can mortgage our houses and get more money to buy more houses! Instead of selling! So first of all, you must understand that housing prices are not affected by declining birthrate, aging population, etc.! But monetary policy! Today there are only 10 people in a place but there are 100 houses. Logically speaking, there is an oversupply! But today I tell you that each of these 10 people has 100 million yuan , and the price of each house is only about 100 yuan! So, are house prices going up or down? Is it possible that a man named Fat Tiger will buy all the houses? Let the remaining 9 people have no house to live in! As a result, they had only two choices. The first was to leave this place and live in other countries! The second is that I want to continue to enjoy the medical, education, financial, cultural and other high-quality conditions of this place , so I am forced to buy a house with Fathu! But this fat tiger hoarded all the houses and refused to sell them! What can you do? Then the rest of the people can only pay a high price to buy it? Because if he doesn’t buy it, he will move out of this place or sleep on the street! As a result, housing prices will be pushed up. Originally, everyone's wealth was equal , but now it will be transferred to Fat Hu alone! Therefore, the rise and fall of house prices depends on whether there is money or lack of money in the market! From 2022 to 2023, because of the interest rate increase, many people will deposit their money in banks and collect interest! No one is going to buy a house, so the transaction volume will fall! Raising interest rates is equivalent to freezing most of the money in the market! But you can see that in places with relatively low interest rates, such as Japan, their housing prices hit a historical record when the United States raised interest rates! Because Japan has cut interest rates and there is a lot of money in the Japanese market, so everyone is going to Japan to speculate in real estate! The same goes for Taiwan. Although there has been no interest rate cut, the rate of interest rate increases in Taiwan is very low compared to the rest of the world! So there is still a lot of money in Taiwan, and housing prices are still strong! Then Mainland China will also cut interest rates! But because of the trade war, it is not as easy for external funds to enter as before , and the interest rates on mainland mortgages have actually dropped but are still very high. I won’t say more about this! Will housing prices rise if the Federal Reserve cuts interest rates in 2024? What happens if the money is unfrozen? If you need this answer, I suggest you listen to those so-called experts who have never bought a house before , because he will give you a satisfactory answer! And my answer is, never predict short-term housing prices! We only deal with high-probability events. We only need to know that when the game of inflation and money printing continues, housing prices, especially those in the egg yolk area, will rise in the long run! Our investment plan is to play a game like Fat Tiger and go to the egg yolk area to stock up on houses before interest rates are cut! Go sow! Because Egg Yolk District has the best schools and companies, the highest income , the most convenient transportation, the most complete medical system, the best food, the best culture, etc.! So for us, investment is always in the yolk zone! Everything else can be rented instead of bought! Many people ask me, if I rent out my house , won’t I end up renting a house to live in? yes! For example, if you buy a house in Danyang District and then rent it out , you can be aggrieved and rent a house in Danke District for half the price! Even if I buy a house in Hong Kong, Japan, Mainland China, Vietnam, and Taiwan, it doesn’t mean I want to live in these places! I won’t be in these places for a long time because there are no geographical restrictions on how I can make money! You can see that Coca-Cola’s CEO’s annual salary is $50 million! But he has to do management, marketing, product, etc. work! And Buffett's annual return from investing in Coca-Cola is more than 500 million US dollars! In other words, investing in stocks means letting the bosses of listed companies work for us! As for my stock investment class, not only is it free now , but it will also teach you a stock investment system with a very high fault tolerance rate. We are not restricted by geography . We only need to spend up to one hour a day on the layout , and then all the rest of the time is free. You need to do any work and use the money you earn back to invest in real estate! Or buy a Porsche, go on vacation with your family and enjoy life! So if you don’t want to miss it, be sure to sign up as soon as possible through the first link in the video description column! If you miss it, it may be removed from the shelves in 2024! Then you may ask, all the rent collected has to be used to pay the monthly mortgage payment, but in fact I have no money to put into my pocket! I've explained this many times and some people still ask you, part of your monthly mortgage payment is expenses, that is, interest! The other part of the money, called the principal, can be withdrawn when you sell the house! So you may receive a rent of 33,000 in the first year , and then your mortgage loan will also happen to be 33,000! OK, 80% of your mortgage payment in the first year may be interest, and 20% may be your principal! And after ten years, it will become 50% interest and 50% principal! Twenty years later, it may become 20% interest and 80% principal! But ten years later, your rent may rise from 33,000 to 50,000. Twenty years later, it may rise to 100,000! It is equivalent to saying that as time goes by, your interest payments become lower and lower, and the value will depreciate, but your rental income becomes less and less. Slowly, you will find that your wealth is increasing without the skyrocketing housing prices. In some cases, it has already accumulated! This is called investment! So if you live by yourself, as long as you can hold on and pay off your monthly payments, in the long run your wealth will be several times greater than that of someone who has not bought a house! You may also ask, if the interest rates in the United States increase, our monthly repayments will also increase! Then remember it! No matter how much you increase your monthly payment, you may only be able to pay an extra US$10,000 to US$20,000 in a year! Then even if the Fed doesn't cut interest rates for three years, I will only pay an extra 100,000 in interest at most! But this house is in the interest rate rising stage, and we can buy it for 200,000 yuan cheaper! Was that a profit or a loss? Many people say that 2023 is a very bad year , but we can learn from the past and learn from the present. There is nothing new under the sun. Scenes that are worse than this year have appeared more than 10 times! But the test is difficult, but you can pass it! Even if you rely on gambling to buy a house, the probability that house prices will rise is higher than that of falling! What's more, today, you may have become enlightened and realized the difference between real estate speculation and investment, as well as the difference between investors and other people! You just need to remember! As long as the game of money printing and inflation remains unchanged, we only need to prepare two things in advance, one is cash! The second is our courage! For cash, you can sign up for a free stock investment class and learn from me! But courage needs to be practiced by watching my videos for a long time , so remember to subscribe and like! That's a joke! But it’s not a joke , because in the next episode I will disclose other money-making opportunities and trend layouts in 2024! It is no exaggeration to say that the most important content is in the next episode! Remember! I will continue to share free information about becoming rich, entrepreneurs, and investors to achieve financial freedom every Thursday at 8:30. If you don’t want to miss it , I still call on you to subscribe to my channel and turn on the little bell! Okay, if you have any questions, please leave me a message! As long as you can find one or two sentences in what I said today that are useful and can help you live a better life, I will be satisfied~ If you like this kind of positive energy, you can also like and support me, and Share the video and positive energy. If you think you are saving others, you are actually saving yourself . See you next week, Bye!
