"42 Million Won a Year from 14 Old Apartments"... Chinese 30-Year-Old Retiree Hits '200 Million Views'

Young Chinese Man Retires Early on Apartment Rental Income
Earns 42 Million Won a Year Renting Out 11 Units
Halts Real Estate Purchases as Home Prices Fall, Turns to Dividend Investing

A Chinese man who retired early at age 30 by earning 42 million won a year in rental income from 14 aging, small apartments has become a local sensation.

On November 9, Hong Kong’s South China Morning Post (SCMP) reported that “Pan Junjie, from China’s Jilin Province, quit his job after achieving ‘FIRE’ (financial independence, retire early) at age 30 and now lives on rental income.”

Picked ‘Lao Po Xiao’ Apartments and Bought 14 Units in Two Years

A view of an aging apartment building in China to help readers understand the article. Pexels

Pan reportedly worked up to 18 hours a day when he was a sales representative for an online medical services company in Changsha, Hunan Province, China. After enduring a grueling work life, he turned to real estate investment as a way out. He set his sights on small, old apartments in central Changsha. In China, these are called “Lao Po Xiao,” a phrase meaning old, run-down and small. Although the apartments are cramped and have outdated facilities, their central locations make it easy to find tenants. Having grown accustomed to property prices in major cities such as Beijing and Shanghai, Pan saw the old apartments, which could be bought for 300,000 yuan (about 60 million won) including renovation costs, as “bargains.”

Starting in 2023, Pan spent more than 2 million yuan (about 400 million won) over two years to buy 14 apartments. To ensure a steady stream of tenants, he focused on buying apartments near Changsha’s Xiangya Hospital. He reduced the burden of maintenance by using similar interior designs in each unit to save on renovation costs and keeping spare parts for items that frequently broke. He rents out 11 of the 14 apartments, earning about 210,000 yuan (about 42 million won) a year, or an average of about 3.5 million won a month. His cheapest apartment cost 150,000 yuan (about 30 million won) and reportedly brings in 1,700 yuan (about 340,000 won) in monthly rent.

But life as a landlord was not as easy as he had expected. Managing tenants, repairing facilities, and handling various taxes and brokerage fees took more time and money than anticipated. The falling property market also increased the risk that the value of his assets would decline. According to China’s National Bureau of Statistics, new home prices in 70 major cities fell 2.8% year over year in September, extending their decline for a 39th consecutive month.

Halts Purchases as Home Prices Fall... Shifts to Dividend Investing

A man who purchased 14 aging apartments in Changsha, Hunan Province, China, holds up the property ownership certificates. Screenshot from a video by Sanxiang Dushibao.

On October 26, Pan announced online that he would no longer buy real estate. “The best time has already passed,” he said, adding that he would invest in dividend funds and high-dividend stocks and use the dividends, rather than rental income, to cover his living expenses.

Pan explained that “rent and dividends are similar in that both provide a steady stream of cash from assets.” However, he said, they differ in liquidity. Renting out a home and receiving rent can take several weeks, whereas dividend funds can be sold and converted into cash within days if needed. He acknowledged, however, that dividend investing can also result in a loss of principal.

Pan currently keeps his emergency funds in Alipay’s money market product and divides money he expects to use within one to three years between low-risk bond funds and bank wealth management products. He is reportedly staying in Laos and enjoying traveling. In an interview, Pan said his approach was not suitable for everyone and that people should make careful decisions based on their own circumstances.

Pan’s story has attracted attention on local social media, where it has received more than 200 million views. One user expressed envy, saying, “If my dividends were higher than my salary, I could quit my job and live more freely.” Another user, however, said, “Whether it’s real estate or stocks, you can lose money if you get the timing wrong,” adding, “There is no easy way to make money.”

This content was produced with the assistance of AI translation services.