Chapter 5: Chapter 5: The Financial Expert Must Be a Prophet
Behind the word "especially," Su Yixia didn't know how to describe it.
Gu Nuan immediately thought to herself, "Especially since what he said was all true."
"He said I'm even richer now. No way around it, having money means having good fortune." Su Yixia posted his Weibo and added a mocking ghost face.
Anyone who dares to say such things is either crazy or asking for trouble. That's what normal people would think.
Gu Nuan looked at this sentence and couldn't help but be lost in thought, then she texted back to Su Yixia, "When I get back, let's go to Changda together."
Su Yixia was initially delighted, then suddenly remembered something, "What did you say? Where have you gone? Weren't you going on a honeymoon with Wa Zicong?"
Their relationship was well known among those at school who had contact with them. After all, they were childhood sweethearts. Just like Gu Nuan's parents, no one could have imagined that ten years of love could shatter in an instant. So, for the time being, no one had realized that they had actually broken up.
Gu Nuan simply replied with two words: "We split."
Being from the same school, hearing rumors, there definitely was some truth. Su Yixia across from her, fell silent for a long time. Perhaps she didn't know what to say to comfort her.
Gu Nuan closed her phone.
Su Yixia's reaction made her feel suddenly disgusted to a point. Perhaps the last person to know the truth was her, Gu Nuan.
Not long after, Su Yixia sent another message: "You didn't accept anything from him, did you? Please don't ask him for anything."
Gu Nuan's eyes narrowed: His mom brought money, and I refused it.
"Oh—" Su Yixia let out a long sigh, paused for a moment, then added, "He's not as smart as you, Gu Nuan. He'll regret it sooner or later."
Those unaware wouldn't know what Su Yixia was referring to. She was talking about the apartment for which Gu Nuan's parents paid the down payment.
That apartment was chosen by Gu Nuan alone. Back then, Wa Zicong came up with various excuses, unwilling to share the down payment with her. Essentially, Wa Zicong didn't value that apartment back then.
The apartment was bought three years ago.
Now, the property price has at least doubled since three years ago. Moreover, looking at the trend, the appreciation potential for this apartment still exists.
This was enough to show that Gu Nuan's investment vision was at least twice as sharp as Wa Zicong's.
Su Yixia laughed and said, "He studied finance, yet he couldn't even match up to you, and talking about it outside would be a joke. But honestly, Gu Nuan, even I couldn't have imagined that your apartment would appreciate in value."
Back then, neither Wa Zicong nor Su Yixia could see the potential appreciation of that apartment.
Su Yixia candidly asked, "Gu Nuan, how could you have predicted that the government had plans for that area?"
When it came to the domestic clan of real estate speculators, they all bet on the appreciation potential of properties. Whether a house could appreciate in value, at the end of the day, wasn't about the construction of the house itself but was related to its location.
Gu Nuan wasn't a real estate speculator; her purchase was initially for a wedding house, a necessary requirement. However, even though it was a necessary requirement, nowadays, which necessary requirement wasn't considered for its worth? When it came to worth, investment issues had to be considered. Thus sometimes, what those financial economists said was merely beautiful in theory. They claimed that for necessary requirements, one needn't worry about investment issues in the property. Did they think people were fools?
There was no reason why others could profit from appreciation in their property value, but you couldn't, right?
That's just human nature, at least one couldn't do worse than others. Especially those who were financially strapped and needed the property out of necessity, they needed to be more careful with their money. If they could purchase a property with potential for appreciation, it would undoubtedly increase their family's wealth. Later on, even if a sudden family emergency arose that required funds, selling the property and temporarily living in a lesser one, or trying to replicate the appreciation investment again wasn't a better plan?
"Necessity" is just a comforting term coined by financial scholars because they know you don't want to think about this aspect.
Gu Nuan could understand that if she wasn't studying Finance and preparing for a career in it, having other jobs to focus on, she wouldn't have the leisure or energy to research a property.
Truly being able to research the value of a property isn't so easy. When you are caught up in what everyone else is saying and mindlessly following others into the market, the first pot of gold has already been taken by someone else.
Since this was her own and her family's first house, Gu Nuan really put a lot of thought into it. Because being a finance student, she understood a principle:
A good financier, an investor, must be a prophet!
You must spot the gold hidden in the sand earlier than others, the only sober person in a crowd of drunks.
The house Gu Nuan chose was in District J. At the time, when Wa Zicong found out she planned to buy the house there, although he didn't say much, his look of slight disdain was undeniable, thinking, "Isn't Gu Nuan just being petty?"
How can you be petty when it comes to investment? Being petty equates to buying trash because things that are valuable are fundamentally based on their worth. According to Wa Zicong, even if it meant taking on debt, one should borrow more money to buy houses in District B.
There's only a river separating District B and District N in this city, yet their housing prices are worlds apart. At that time, the average price in District B was double that of District N. Of course, this was because of better development in District B compared to District N.
When Gu Nuan acquired this house, it was precisely when everyone was most disappointed in the housing prices in District N, and many investors were having fire sales.
Who could have imagined that three years later, the city's policymakers would suddenly announce a plan to merge District B and District N? They decided to build more connections in District N and continue extending the developments outward. As a result, District N's housing prices were bound to align with those of District B and might even double because it was clear that now District N had more room for development than District B.
In effect, the house that Gu Nuan invested in not only doubled in value—it was expected to double again, stacking a double on top of another double. And if one followed Wa Zicong's investment strategy, now the housing price in District B, from three years ago to three years later, had appreciated by less than a third.
Now that the inside information had just come out and investors were swarming in, the housing prices were already doubling. Wa Zicong was indeed clever, well-informed, and as soon as he learned about it, he immediately had his mom bring a hundred thousand to trick Gu Nuan, wanting a slice of the pie.
If it were a man sincerely struggling together with her, Gu Nuan definitely wouldn't mind the money; the home belonged to both of them, her money was also his. But now that he was unkind, how could she be righteous?
She wouldn't let him take a penny from her!
"How could you guess they were going to merge there?" Su Yixia admired Gu Nuan immensely. She had chosen her property during the lowest dip in prices in District N three years ago, equating to the most valuable investment efficiency.
Three years ago, no one thought District N and District B would merge. Otherwise, no one would have desperately sold their properties in District N back then. Maybe even the policymakers hadn't thought they would merge the two districts at that time.
Gu Nuan's answer was simple: because three years later, the land in District B was destined to be insufficient.