For a long time, there have been two main investment channels for Chinese people: one is to buy a house, as long as everyone has a little savings, they will choose to buy a house. According to the data, real estate already accounts for 77% of the total household assets, and another 23% is financial assets. Obviously, most families in the country are betting their money on real estate.
However, starting from 2023, a new round of adjustment in domestic real estate has emerged. From January to November this year, the sales area of commercial housing nationwide was about 1.212 billion square meters, down 23.3 percent year-on-year, and the sales of commercial housing were about 11.86 trillion yuan, down 26.6 percent year-on-year. At the same time, 69 of the 70 key cities saw a decline in second-hand housing prices, and only 1 city had a flat housing price.
The other is to keep money in the bank. After 3 years of the pandemic, many people have discovered the importance of saving money, and the investment risk is too great, so people are keeping their money in the bank. In the first three quarters of this year, the mainland's total deposits increased by 22.48 trillion yuan, and household deposits increased by 14.42 trillion yuan.
However, since the beginning of this year, domestic banks have continuously lowered deposit rates, and now the three-year deposit rate has fallen to less than 3%, and the one-year deposit rate has fallen to less than 2%. Bank deposit rates have hit record lows, and there is a further downward trend in the future. This also means that depositors' deposit returns are getting smaller and smaller.
In this regard, people who think that they should buy a house said: Although the property market is in a downturn, various favorable policies are frequently introduced, and the recovery of the real estate market in the future is a high probability, and the interest rate of depositing money in the bank is getting lower and lower. Obviously, it is more cost-effective to buy a house if you have spare money in hand.
However, there are also people who support the continuation of bank deposits that the trend of domestic real estate adjustment has been formed, and it is a high probability that housing prices will fall in the future. Therefore, it is a safer decision to choose to keep your money in the bank, at least the principal and interest are guaranteed.
And we still prefer to have 1 million in our hands, or it is more practical to continue to deposit in the bank, mainly for the following reasons:
First, now the housing prices in various parts of the country are still high, and 1 million people can't buy a house at all, so they must take out a loan from the bank, and they have to repay the bank loan every month. And now although the interest rate on bank deposits is getting lower and lower, there is at least more than 20,000 yuan of interest per year for 1 million, and life is not only stressless, but also with this interest can also subsidize the family.
Second, whether to buy a house depends on the real estate trend, don't go against the trend. In fact, if you have 1 million in your hand, whether you should continue to deposit in the bank or buy a house, it depends on the trend of real estate, if it is in the upward trend of housing prices, buying a house is definitely more cost-effective than depositing in the bank. However, now that housing prices in various parts of the country are in a downward channel, it must be more cost-effective to keep money in the bank.
Although the interest rate on bank deposits is getting lower and lower, at least the principal is guaranteed. Buying a house at a high level is different, and you have to face the risk of shrinking assets. Data shows that many families who bought houses from 2019 to 2021 have now lost even their down payments. Obviously, the deposit is at most the depreciation of assets, and now the probability of buying a house is the shrinkage of assets.
Third, there is a large bubble in housing prices everywhere, and there is a lot of room for downside, and the deposit rate is lowered again, which is close to the bottom area. At present, the ratio of housing prices to income in second- and third-tier cities in China is 20-25, which means that local residents can only afford to buy a house after 20-25 years of working without eating or drinking. The ratio of housing prices to income in first-tier cities such as Beijing, Shanghai and Shenzhen is 50-60, which means that local residents can only afford to buy houses after 50-60 years without eating or drinking.
In particular, Beijing, Shanghai, and Shenzhen have all ranked among the top 5 highest house prices in the world. A real estate bubble like this will eventually return to residential properties. If you keep your money in the bank now, as long as the principal is not lost, and wait until the real estate bubble is squeezed out in the future before buying a house, then the cost of buying a house will be significantly lower than now.
If you have 1 million in your hand, should you continue to deposit in the bank or buy a house? Many people may say that the bank interest rate is so low now, and the good news about real estate is continuous, and now is a good time to buy a house with 1 million! But in fact, if you have 1 million yuan in your hand and buy a house in a big city in China, you still have to owe a mortgage, and you will have a greater pressure to repay the loan every month.
In addition, now that the real estate market is a trend of adjustment, if someone buys a house against the trend, the probability of losing money is very high. It's better to keep your money in the bank. It is worth mentioning that the housing prices in various parts of the country are generally too high, as long as the money is stored in the bank, and then buy when the housing price falls, so that the cost of buying a house can be reduced a lot, why not?