Down billions to invest in land when “fever”, who expected to bury capital for more than five years, now “can’t move forward, can’t go back”
Ms. Kim Hoa (33 years old, Hanoi) has been selling a plot of land in Uong Bi, Quang Ninh for more than a year, but until now, the goods have not been sold. Ms. Hoa said that last year, in the “fever” of land crazy everywhere, she participated in real estate investment in the land plot segment. At the time when the market was hot, she successfully traded 2 plots of land in Quang Ninh area, within 3 months earning more than 500 million dong in profit.
“Seeing a good investment, I continued to pay for the third plot of land, at this time many friends who also invest in real estate warned me to pay attention, observe the market carefully and then put down money. The reason is that the market has been rising fast and hot for a while. But for fear of missing out on the opportunity to make a profit, I still put my hands on the 120m2 plot of land at the price of 18.3 million VND/m2, the total value of the land plot was approximately 2.2 billion VND”, said Ms. Hoa.
Only determined to surf, have a good profit with the expectation that Ms. Hoa will switch hands immediately. But just signed a contract to buy and sell hands, the market fell into silence due to the impact of the outbreak of the Covid-19 epidemic.
“I had to define a medium-term investment. At the end of last year, when the market was active again, I asked my local brokers to list them for sale and also posted them on some other channels for 23 million VND/m2. There were also 3 or 4 guests who came to see and were willing to buy but all wanted to reduce the price by 2 or 3, only ranging from 20-21 million VND/m2. Thus, I only made a profit of about 200 million VND, while I kept this land for nearly a year and a half. This interest rate is too small and does not meet my expectations”, Ms. Hoa shared.
She said, with that interest, minus the cost of borrowing more banks to invest, the interest is not worth it. Therefore, she decided to keep the price that she offered to sell. If you do not reach that price, you continue to hold. “Try to keep even when the market is gloomy, now when the market is quite good, why should I sell cheaply,” said Ms. Hoa.
In the same situation, Mr. Phu Minh (45 years old, Bac Giang) who invested in land in Bac Ninh was also “stuck” and could not get rid of the goods because he bought it right in the land fever. For more than 10 months, Mr. Minh has not been able to find a buyer, although many customers ask, but they all pay the same price as he bought.
“If I sold it at the price that I made money more than 10 months ago, I would have lost money because I borrowed nearly 1 billion from a bank to invest. Over the past 10 months, I’m still paying an interest. Therefore, I must make a profit to sell,” Minh said.
A real estate broker in the land plot segment in Hanoi said that the number of customers visiting the site has decreased compared to the previous months because the market has many bad news: tightening plots to sell plots, banks have a move to tighten loans. real estate credit, inflation… Therefore, customers who use loans are wondering if they can put down money at this time or not? As for those who have “idle” money, they want to buy at a more reasonable price.
Regarding the above situation, Mr. Su Ngoc Khuong – Senior Director of Savills also once commented that although real estate prices increased, the market could not afford to buy and there was no liquidity. At the same time, many investors also use financial leverage to invest in real estate, making low-liquid assets a great burden for them as well as putting pressure on the banking system.
“That’s why, I think that in today’s complicated context, it is especially important to carefully consider when using financial leverage to invest in real estate, to avoid repeating the situation of “dead on earth”. pile of assets” has happened in the past.
In the next 9-12 months, it is possible for some investors to be forced to sell off assets because they cannot bear the pressure from financial support tools. However, the speculative nature of this group is not large, making it difficult to manipulate the market, affecting the price level. Besides, the supply of housing in Vietnam in the coming time is still very limited, so a reduction in real estate prices is very unlikely,” he added.
Sharing the same opinion, economic expert, Dr. Dinh The Hien also said that if you want to have liquidity, many areas have to reduce prices to sell. Areas that used to increase in heat or were expected to increase by times in the past time, are now leveling off. Investors will withdraw money and invest in solid areas.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
