Student Question
Master, hello. Aonan Strait City is listed at 40,000 yuan per square meter. Is a 200-square-meter unit worth buying?
Master Chi’s Response
People say Strait City doesn’t appreciate — but at 40,000 per sqm in Aonan, Strait City is basically the only option at that price. When Strait City first launched, it was a very tough sell. It was pioneer territory in the Hexi South district, average quality at best. Back then, their sales team was cold-calling everywhere trying to move units at 10,000 to 20,000 yuan per sqm. It eventually rode the broader market upward.
So buying Strait City at that time wasn’t exactly a wise move.
Now you’re looking at it after the price has already climbed. It will continue to rise — but the appreciation won’t stand out compared to other developments. Forty thousand is basically market price at this point. Unless you can hunt down a deeply discounted listing, there’s no particular edge here.
Student Question
Master, hello — a simple question. Is a property’s profit calculated roughly like this?
Net proceeds = Sale price − Loan balance − Interest already paid − Down payment − HOA fees, miscellaneous costs, transaction friction, etc.
That’s what actually lands in your pocket, right?
Master Chi’s Response
But why sell in the first place? In many cases you can pledge the property as collateral — pull the equity out through a mortgage loan. That is your profit, just carrying some interest. Selling for cash is profit without interest; borrowing against it is profit with interest.
The essence is identical.