Chapter 1428: 1428. Winning the First House (2/5)

Chapter 1428 1428. Win the first house (25)

Compared with warehouse auctions, the bidding scene of real estate auctions is even more chaotic, especially when the phone rings continuously.

Houses are being auctioned according to their numbers, with the first being a townhouse in downtown Santa Monica.

Townhouses, also known as condominiums, are a type of houses with two or more households connected to the wall. They can also be called row houses. The value of this type of house is lower than that of a detached house, and its land use area is relatively small.

The value of American houses depends on two things, land and buildings. Buildings will become cheaper and cheaper over time, while land will increase in value according to regional development and environmental changes.

This house was built in the early twentieth century and has a history of hundreds of years. There are many such houses in the United States, and people can live in them with just a few repairs. It is common for the house to be older than the occupants.

Because the house is too old, the transaction value of this house is very small. Like many old houses in the urban area, its area is quite large, with a set of 150 square meters.

The white glove knocked on the table with a gavel and said, "Everyone, be quiet, be quiet, listen to me, the auction is now officially started. If you are interested, please move forward and make an offer early. The house won't wait for anyone..."

"As a rule, I will repeat the quotation three times again. The three quotations determine that the transaction volume should be lower than your bank card or the cash you bring. In short, you have to count your own money and don't bid randomly..."

"Okay, the starting price of the house is $20,000, $20,000, and you can get a big house in the city center for only $20,000. If you're interested, please come forward. Very good, $21,000 for the first time... "

Santa Monica is a resort city. Its status in California is similar to that of Flagstaff in Arizona. It is a small place, but because of the environment and climate, many wealthy people buy houses here for vacation, and the price is not low.

A house of 150 square meters only costs 20,000 yuan, which is cheap no matter how you look at it. Even if the house has a history of 100 years, it is still a very low price.

This is a foreclosure house, with a low price and a large profit margin, but no one knows the specific condition of the house, or even whether it can be lived in, so it is a big gamble.

Li Du participated in the quotation: "Twenty-five thousand yuan!"

The auctioneer pointed to him and said, "This gentleman offered 25,000 yuan, 25,000 yuan, 25,000 yuan, is there anyone willing to pay a higher price? 26,000 yuan is very good, sir, 26,000 yuan Then let us be bolder..."

The price keeps rising, and the transaction price of this old house is estimated to be around 50,000.

The market price of such an old house may only be around US$100,000, and the tenants dare to bid because of its good location, convenient transportation, convenient living, convenient entertainment, and convenient schooling.

Because of all the conveniences, although the sale value of the house itself is small due to the long construction period, it has a high rental value and a high rental return rate.

According to the information that Li Du has seen, the gross rental rate of return on rental properties in California can generally reach 7% to 9%.

After deducting holding costs and management costs, the net rate of return is still 56%. This is different from China, where the rental rate of return in the leasing market in China may only be 23%, and the ratio of housing prices to rents is not normal.

For example, the villa that Sophie rents in Los Angeles has an area of ​​about 3,000 square feet and is worth about 900,000 US dollars. The annual rent is 80,000 US dollars, and the rental return rate is close to 8%.

As Li Du expected, the price rose step by step, and soon reached 50,000 yuan.

Everyone has the same goal. If you buy such an old house and clean it up and rent it out, if the house itself is not badly damaged, then the rate of return will be great, and it may reach 20%!

In the real estate auction, the transaction price is very particular. It determines the price range according to the estimated value of the house. Generally, if the house value is less than 100,000, the highest bid is 50,000. If it is higher, it is risky.

If the value of the house is less than 200,000, the highest bid is 60% of the value, when it reaches 500,000, the highest bid is 70%, and when it is worth a million, the highest bid is about 80%.

If you go further up, there will be no rules. People can only make quotations based on their own experience and luck. Houses with more than a million dollars may make big profits or lose big. Those who dare to buy such houses are those with strong funds.

When it reached 50,000 yuan, people's enthusiasm for quoting dropped rapidly.

Someone next to him calculated: "50,000 yuan, if it is 50,000 yuan, the annual rent is about 7,000 to 8,000 yuan, and the rate of return is 15%. But you have to pay 2,000 yuan in property taxes, and the grass yard maintenance fee is at least There are five hundred yuan, the house insurance and maintenance fund combined are one thousand yuan, and the cost of vacancy is thousands of yuan, yes! Fifty-one thousand yuan!"

"Fifty-five thousand!" A house picker followed.

The auctioneer pointed at him and said, "55,000 yuan, 55,000 yuan, 55,000 yuan, is there anyone willing to pay a higher price? For example, 56,000 yuan?"

Li Du touched his chin and said, "Sixty thousand yuan!"

Hearing this offer, some house pickers shook their heads.

"Damn, the price is a bit risky!"

"This kind of broken house costs at most 50,000 yuan, and no matter how high it is, people are stupid and have more money!"

"Where did he come from? When did Santa Monica still have such Chinese people?"

"The treasure picker, he used to be in Arizona."

"Ha, that's a generous shot, so he's a rookie? Then let him take it away."

The market value of this house is 100,000 yuan, and it can be sold quickly if it is listed for 90,000 yuan. The tenants dare not bid too much because they don't know the plumbing and decoration of the house.

Li Du didn't have this worry. He checked it with space-time flying insects. The house was well protected, and all the lines and passages could be used. At this price, he won't lose money.

The auctioneer pointed at him and began to set the price: "60,000 yuan for the first time, 60,000 yuan for the first time, is there a good bid of 60,000 yuan, the second time, the second time? If there is no one—man, 60,000 yuan is sold! "

Li Du nodded with a smile, and held up the license plate in his hand to show to the officials in charge of the auction. The next procedure was the delivery of the real estate, and an intermediary would come to help him.

The second house is being auctioned. This is a detached house in the urban area. The house is very new, only ten years old. It is a second-time house. The price of such a house is relatively high. about.

Li Du had nothing to do with this house. There were people living in it, a family of Mexicans with children, and it would be very difficult to take the house back from them.

Others also knew the news. They inquired about the situation of the house in advance, and the final price was 120,000 US dollars. If the people inside could be successfully driven out, the house would have a lot of room for profit, but it was difficult.

Li Du looked at the picker who took the house. He estimated that the house would fall into his hands. The Mexican was a lawyer, so he must have something to rely on if he dared to stay in the house.