Following the trend of borrowing money to buy a land plot of 600 million VND, 2 years later, cutting losses could not find a buyer

34 years old, a design worker at an education company, Mr. TT (Nam Tu Liem, Hanoi) used to think many times about how to get rich. At his age, his fortune is just an apartment house with an area of ​​​​over 40m2. With a salary of 20 million VND/month, Mr. T’s family must carefully calculate the cost of living. Mr. T. said that his wife sells goods online, mainly at home to take care of the children, so almost the main income in the family depends on him.

Seeing that everyone’s friends quickly changed houses and changed cars, Mr. T felt impatient. Listening to friends talking, he decided to boldly invest in land. No experience, new knowledge is only in theory, according to friends, Mr. T. put money into a plot of land in Hai Duong. “If you buy a cheap plot of land, you will definitely make a profit. Buying land in the countryside is easy to sell later” – That’s the lesson that Mr. T. learned from his friends.

Following the trend of borrowing money to buy a land plot of 600 million VND, 2 years later, cutting losses could not find a buyer - Photo 1.

In December 2019, after finding out, Mr. T decided to put down money on a 200m2 plot of land located in an alley in Hai Duong, with the price of 600 million VND, including 100m2 of residential land, 100m2 of land for perennial crops. To have enough 600 million dong, Mr. T. borrowed 500 million dong from the bank by mortgaging the pink book of his house. 100 million dong, he withdrew all of it from the savings book.

Mr. T. plans to wait about 1.5 years and then put it up for sale. He also expects that, when a new real estate project is 5km away from the land he bought, the price of the land he bought will increase.

However, up to the present time, more than 2 years have passed, the land plot that Mr. T bought is still in the state of “no one asked to buy”. The real estate project that he had heard about to be implemented is also in the “on paper” state. Find out information, Mr. T. just found out, the time he put down money was right at the time when the land was feverish. So the price he bought was 50% higher than the price of the country land 3 months ago.

“Over the past 2 years, my family has had to bear an additional debt of interest of nearly 6 million VND/month. No one asked about the land plot bought forever. Even when cutting a loss of 10-20%, no one asked,” said Mr. T. let me know.

Surveys from real estate market research units recorded that the price of rural land in the past few years has increased rapidly, even in some areas by time. However, the situation of land prices is high, but the actual buyers are very low, the success rate of transactions is limited.

Mr. Nguyen Ngoc, leader of the real estate trading floor, said that most of the country’s land prices are virtual increases, “following” the common land fever. But the basis for the price of rural land to increase in accordance with the value is not available such as widening roads or appearing residential projects, urban areas around. In addition, according to Mr. Ngoc, there is a situation where the price of rural land exceeds its true value. For example, in many areas, roads are wide open, but before that, land prices have escalated rapidly. When the road was completed, the price of rural land increased 3.4 times, leading to some places as expensive as some land plots in Hanoi.

Mr. Ngoc said that when the real estate market shows signs of slowing down, areas with too high prices such as the countryside will be the “first place to bury capital” because real demand is low and prices are too high. “The real estate market is showing a number of risk warning signals such as banks’ moves to tighten credit to real estate, tightening legal regulations on projects as well as investors’ anxiety. Even now, some investors are “inexperienced”, putting money in real estate and burying capital has happened.They cut their losses by 20-30% but still can’t find a buyer. This situation will continue to spread if the real estate market falls into a phase of real stagnation.” buy-20220412101603866.chn

According to Viet Khoa

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