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Summary of article:
Fan Junjie, a young man from Jilin, was interested in low-cost housing in Changsha. He bought 14 houses in two years and relied on the rent to “retire” at the age of 30. However, he later clarified that the income was due to vacancy and maintenance costs, and advised the general public not to blindly follow the trend.
Recently, the investment experience of Fan Junjie, a young fan from Jilin, has sparked heated discussions on the Internet. He said he invested more than 2 million yuan (RMB, same below) to buy 14 houses in Changsha, Hunan in 2023.Rent Income received at the age of 30″retire “Life. Many netizens followed after seeing their operation. Some people thought that this was a specific case and it was not appropriate to follow the trend. Some netizens called on the Changsha Taxation Bureau to explain the personal income tax. “You want to trick us into buying a house again?”
According to reports from Yangtze Evening News and NetEase, Fan Junjie said in his own words that he is from Jilin, not a native of Changsha. He stayed in Changsha in 2023 as he started a business. He was used to seeing multi-million homes in Beijing and Shanghai. Suddenly he saw a house in a good location that cost more than 300,000 yuan including decorations. Their first reactions were “too cheap” and “I have to rent one anyway, so why not buy one.” Shortly after, a 54-square-meter old house in the main old town of Changsha became the first home of his life.
After buying his first house, he found that the houses priced under 1,000 yuan were ordinary old and dilapidated houses with old decorations and miserable living conditions; Houses priced at more than 3,000 yuan were for the newly built elevator room next to the core hospital. However, no one sold the high-quality houses built in between. After Changsha relaxed purchase restrictions in 2023, all houses near Jiangya Hospital were chosen and used almost templated decoration to reduce management costs. At its peak, he could buy two houses a month, and eventually amassed 14 houses in two years.
Later, he owned 11 houses for rent in Changsha, with an annual rental income of about 180,000 yuan, and an average rent-to-sale ratio of about 7%. According to reports, the theoretical annual rent of 14 fully rented units could reach 213,000. The most expensive one is priced at 245,000 yuan and the monthly rent is 2,200 yuan; The cheapest one is priced at 150,000 yuan and the monthly rent is 1,700 yuan. You can “retire” at age 30.
After Fan Junjie’s experience was revealed, it sparked heated discussions on the Internet. Many netizens expressed plans to follow, while some netizens questioned the authenticity of the content he described.
After the relevant reports became hot search, Fan Junjie came out publicly to “disappoint” the company. He acknowledged that the best time to enter the market has passed. The rent-to-sales ratio had fallen from a maximum of 11% to around 6%, and opportunities to miss out were reduced. He decided not to increase his wealth. The annual rent of 213,000 yuan on the book is the ideal price for full rental. The actual cost of vacancy period, maintenance and renovation, agency fees and other costs should be deducted. This is not “making money” as it is imagined on the Internet. The general public is reminded not to blindly follow the trend of buying houses to collect rents.
Additionally, 14 dispersed properties mean constant tenant docking and maintenance management. Liquidity is also poor, and it is not easy to withdraw cash when money is urgently needed. He himself has shifted some of the new funds into dividend-earning assets.
Summary FAQ
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He was in Changsha to start a business and found that housing prices in the core area were relatively low, so he bought his first old house. They then focused on the area around Jiangya Hospital and used template decoration to reduce costs. Ultimately, he built 14 houses in two years.
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He currently has 11 apartments for rent, with an annual rent of about 180,000 yuan; Based on the theoretical value of all 14 apartments fully rented, the annual rent could reach 213,000 yuan. The report also noted that the highest rent-to-sales ratio was once close to 7%, but has declined significantly.
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Since the opportunity to enter the market has passed, the rental-to-sale ratio has fallen from a high of 11% to about 6%, and there is less room for leakage. At the same time, you have to bear the costs of vacancy, maintenance, agency fees and management, and it is not easy to realize cash, so it is not suitable for indiscriminate bargaining.
