Generation 7x and 8x investors love real estate
Mr. Le Quyet Thang – member of the Board of Directors of Keller Williams Vietnam shared at the talkshow Having an appointment with a real estate expert of Batdongsan.com.vn, the 5x and 6x generations have a habit of accumulating money to buy gold. This was a popular investment channel at that time. However, in the last 5 years, the following generations, especially the 7x and 8x generations, have a lot of investment options. Besides the gold investment channel, other investment channels can be mentioned such as stocks, bonds, US dollars and real estate. Among these 6 channels, real estate is still the channel favored by Asians, especially Vietnamese.
Explaining the fact that real estate has always been a popular investment channel, Mr. Thang said: “For 30 years, since the Land Law in 1993, real estate prices have only increased but never decreased. Go”.
In the last 5 years, from 2016-2021, the average growth rate of investment channels is 18-19% with stocks and bonds at 9.8%, deposits at 6.2%, gold at 6. 1%, US dollar is 0.2%.
The average growth rate of real estate is 19-20% for suburban land and apartments, 12%. Thus, the growth rate of real estate is still at the top, becoming the first choice of people is normal.
Recognizing this issue, economic expert Dinh The Hien said that most Vietnamese individual investors understand and know that real estate is the best investment channel in the last 20 years and at least in the past 10 years. This opinion has not changed.
In 2021, the stock market increased by 37%, the amount of money in securities was very large, but Mr. Hien affirmed that the amount was still nothing compared to the amount of money people poured into real estate.
In the last 10 years, the Vietnamese dong has kept its value very well. Because the Vietnamese dong kept its value well, the USD and gold exchange rates did not increase much. Only in volatile years because of epidemics and wars such as 2021 and early 2022, will the gold price increase sharply. While the USD and gold exchange rates in general do not fluctuate significantly, the volatility of real estate prices is increasingly attractive.
In order for real estate investment to bring optimal profits, Mr. Le Quyet Thang emphasized that it is necessary to focus on 3 factors in investment: criteria, terms and network. For example, if you have 1 billion dong, you must state the criteria for the area that is suitable for the amount of money you are going to invest. “1 billion cannot invest in urban land in Ho Chi Minh City, but there are many opportunities to invest in suburban land”, Mr. Thang affirmed.
The second factor is the terms, i.e. the type of investment desired. Third, investors must have a good network of local brokers. It is the good local brokers who will help investors find good products at good prices.
Also according to Mr. Thang, in addition to brokerage, investors need to have experts to re-evaluate that option and have a relationship with the bank. “How to minimize risks and maximize profits, investors need to make efforts to hone their knowledge to have a good investment wisdom”, Mr. Thang emphasized.
According to expert Dinh The Hien, capital structure is the core issue of an enterprise, with individual investors with assets over tens of billions of dollars, it is necessary to restructure capital. However, capital structure has no common denominator. In investment, a bank loan is considered the best source of capital. The source of capital with the lowest cost is considered the best source.
According to Mr. Hien, bank loans in the 8-9% interest rate range are the best sources of capital. Many investors borrow to buy land up to 70% is a maximum threshold in the financial structure of banks. Deciding on a bank loan ratio to create a capital structure in real estate investment should be based on your liquidity, cash flow and ability to earn a steady, safe income.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
