The law of rent on involution

More than ten years ago I rented a house, the rent was not expensive, Hangzhou was almost the most expensive district of two rooms and a small old rundown is less than 2000, equivalent to about one-eighth of my total income and leadership, rent up without much pressure.

I rented the district, the house is the unit to the staff. The landlord had a small house in front of the unit, and then the unit was replaced with a larger set of the same district, the small house returned to the unit. So we also moved once, the landlord did not change, I did not expect this time encountered a mishap.

The cause is the handover problem. The former owner left a utility bill of about a few hundred dollars was not settled, both sides do not want to pay. Because they are colleagues, finally my landlord directly reported the matter to the unit, the unit directly from the former owner of the salary of the money deducted.

Originally this is also finished, I did not expect the former landlord magically back to the field: said the home of the security door is installed by themselves, asked to remove, the unit to install the wooden door back. More amazingly, my landlord did not strongly oppose …

Before the break the landlord came over with a bunch of tools to personally demolish the door, install the door, I and the leader are looking silly. After demolishing the door seems to intend to demolish something else to go, I rushed to the police, the police uncle finally persuaded the demolition of the door uncle to go away. I watched the door demolition uncle to carry a large iron door from the 5th floor down, the mind is a mess, also do not understand this thing for him what use.

The landlord came over in the evening to comfort me and gave me a new security door a few days later. But because the previous owner was very unprofessional, the door frame left a lot of cement holes on the side, the wind in the winter when the sound of whimpering. The most expensive neighborhood in Hangzhou at the time in terms of unit price, there was this sound on behalf of the hungry and cold.

I later searched the Internet for the name of this door demolition uncle, the industry is quite famous, should not be short of a few hundred dollars, is for that breath. In short, this rental experience is still quite bad, but at that time I have bought a good house, soon to move out, so I did not take it too seriously.

There are many strange things like renting a house. The most bizarre is that I know a beautiful girl who works as a programmer in a big factory in Shanghai and works overtime every night. The landlord thought wrongly and thought that the pretty girl came back so late every day and must be engaged in a special industry, so he made some special requests. The girl moved to the hotel the same day in anger, the next day to find a room again.

These bad things anyway, most young people have more or less encountered, but also become an important reason to buy a house.

I recently saw someone take Shanghai as an example and put forward a rent law.

The monthly rent below 5000 houses, the height of the internal volume. Landlord and tenant roll, landlord and agent roll, agent and tenant roll, and tenants roll with each other.

The monthly rent of 5000-15000 houses, moderate involution.

Houses with a monthly rent of 15,000 or more are not rolled and belong to the buyer’s market. Because even in high-income cities like Shanghai, few people are willing to spend 15,000 to rent a house, so the tenants are precious. In addition, Shanghai can be rented to more than 15,000 houses, housing prices are almost running to 20 million, this time in fact, landlords care more about the tenant is reliable, rather than a couple of thousand more rent per month. Because the tenant is not reliable to bring too much damage, the landlord does not want to roll in this matter.

This 20 million level of the house stock is not small, but the transaction rate is very low, the whole of Shanghai every year is only a few hundred sets of level. So basically, they can be rented for a long time, and it is basically impossible for landlords to evict tenants.

I used Chain Home to check the rent situation in Shanghai, and the rent of a 40 square meters old and dilapidated small house in the core area is about 5000, while the rent of a 150 square meters big flat in the new district next door is about 15,000. So of course the latter is much more cost-effective than the former…

So in theory, renting a large furnished flat in a first-tier city is a very good deal, basically the rent-sales ratio is less than 1%. It’s hard to save money to buy a 20 million dollar house, but it’s much easier to rent one. Of course, buying a house is an investment, renting a house is consumption, but life is just a few decades, comfortable living is also very important yo…

There is a marginal effect principle in economics, that consumption, the front of a dollar than the back of a dollar more efficient. Let’s say you go out to eat, per capita 100 yuan to eat well, per capita 200 does not make you twice as happy. But the rental thing seems to be the opposite, the money in the back is more efficient than the front, can buy better enjoyment.

By the way, the same is true of perception in investing. Suppose the market average is 80 points level, you have 85 points level. 80 points level is highly involute, are not earn money loss goods, the extra 5 points will allow you to earn a lot of money.