In this wave of housing price plunge, the worst hit are those who are holding up their facades and leveraging to the point of bursting!
Those who slightly leveraged, in fact, did not suffer much.
For example, let's take that house. In 2021, the price was 3 million, and those who played with less leverage paid 2 million down and borrowed 1 million to buy the house. Later, the house price fell, and they gritted their teeth and paid off the loan in two years. Now the house has fallen to 2 million, which seems to be a loss of 1 million, but the loan has been cleared, the net assets are still there, and the loss is just like that.
But what about those big-headed ghosts? For the same 3 million house, they only paid 30% down payment and borrowed 2.1 million. Now the house price has fallen by 1 million, and their assets are basically zero, and may even become negative! This is really losing all the money, and there is no place to cry!
So in the absence of any strategy and direction, blind leverage operation will only result in a miserable outcome!
