A friend buys a house when they have money. Previously, they increased their position in the suburbs of Hangzhou.

The basis seems to be that the state is supporting the market by acquiring properties, similar to how futures are stored by the national reserves. Their exact words were that there is hardly any room for decline; buying in pessimism and despair is correct. In core urban areas, as inflation rises, housing prices will gradually recover. As long as real estate is not leveraged and one does not chase the peak, it ultimately becomes a reservoir of wealth.

Smart people will transfer assets from high liquidity places to low liquidity places; only wealth that cannot be easily sold can be maintained in the long run.

High liquidity assets come and go quickly, like BTC, ETH, and stocks.

The path to wealth is to take small risks in high liquidity areas. Once you achieve significant gains, invest in real estate. Smart people enter the market with small amounts of money and take big money back home. Too many fools try to gamble big with small amounts, leading to their own ruin.

Some small players say they've only dropped 10%. Hehe, do you know that in core areas of India, housing prices have only dropped 20-30%? Human nature is like this: when prices start to rise, they might only buy a small room. Once they have a bit more money, they upgrade to a larger property. When they have even more money, they leverage up to the hilt with multiple loans as prices rise to 150,000 when they were 100,000. Many people have properties worth 10 million that drop 20-30%, and I don't believe these people won't be fully leveraged when prices hit 100,000.

Oh, if it only dropped 10% and you have 10 million, would you only spend 100,000 on a toilet? You'd definitely go for a spacious flat, a three-bedroom, or a big villa.

10%? Hehe, just a 20%-30% drop can lead countless people to financial ruin.

Human greed and fear will never change. To avoid life's big pitfalls, you either need to be well-read, have strong execution skills, and wisdom, or you need to learn from experience. Some wise people might pull you up before you fall into a pit, provided you can discern who the wise ones are.

If at a card table you don't know who the loser is, it's likely you.