What are the pitfalls of small investment?

First of all, the increase in supply has led to a decline in the prices of the real estate and rental markets. In general, the return on residential investment is inversely proportional to people's attention to the residential investment market. The more people use small apartment rental to get returns, the lower the rental level in the rental market. At the same time, due to the hot sale of small-sized apartments, developers will put a large number of small-sized apartments on the market in a few years, which will lead to a decline in the prices of real estate and rental markets. In addition, the lease supply in the same lot and the same lot has increased sharply, which is easy to cause mutual price suppression.

Second, the function is incomplete, and the "shrinking" quality leads to a decline in the return on investment. Many developers are eager for quick success. In the current hot-selling situation of small-sized apartment market, they unilaterally pursue quantity and ignore quality, simply transform uncompleted residential flats and old residential areas, increase supporting facilities, or transform some stock houses into small-sized apartments, and even design small-sized apartments by using the scraps of ready-made plots. A considerable number of property markets have problems such as inadequate orientation, corridors, green spaces and garages, poor decoration quality, inadequate property management and high property management fees, and investors blindly buy them.

Third, there is a "trap" in the land use period. According to the design standard of urban housing, the area of a single apartment should not be less than 55 square meters, and developers will generally control the area of most small apartments between 30 and 40 square meters according to the market demand for small apartments to reduce the total price of small apartments. Therefore, developers can only set up projects for small huxing according to the commercial and residential nature, and label them as "serviced apartments". According to the relevant regulations, the land service life of ordinary houses is 70 years, while that of serviced apartments is no more than 50 years, and even some buildings transformed from uncompleted residential flats have a land service life of only over 40 years, which means that buyers will have to pay a premium or premium tax in the future, thus increasing the purchase price.

The above contents are for reference only, I hope I can help you. Thank you for your support to Kanfangwang. I wish you a happy purchase!