Gone are the days when putting money in real estate is a billion-dollar profit
Up to now, real estate has always been considered a safe investment channel with high profitability. There was a time when land plots brought back large sums of money to investors. In the investment world, many people still believe that “just putting money in the ground will quickly make a profit”. This thinking is part of the reason why the real estate market every year sees “hot flashes” everywhere.
The purpose of participating in this market is very diverse, buyers to build houses, buyers to invest, “surf”, buyers to keep money… But the real buyers are very few, mainly speculative. Therefore, over the past time, many people doing business in other fields have also shifted their cash flow to the real estate sector more and more.
Not all investors can receive a profit from investing in real estate, especially land plots in suburbs and provinces. Moreover, in the context of the risk of high inflation combined with the State’s recent policies on real estate management, tightening bank credit in real estate, the land plot segment will no longer be “easy to eat” ” as before.
Mr. Nguyen Truong – investor in Hanoi said that there were times when just “surfing” land in the periphery also made a few hundred million dong per transaction, in just a few days or a week.
However, many times he failed on the very playing field that he thought he was familiar with. “Also because of following the mentality of the crowd, I was ‘stranded’ in sandy soil for many years. In mid-2020, a friend asked me to share capital to buy a land of nearly 1,000m2 in Son Tay for 12-15 million. VND/m2, however, it has not been sold since the end of 2021. Even people say that this area has reached 20 million VND/m2, but when customers ask, it can be sold, “said Truong.
Many real estate brokers also confirm, buying according to rumors or buying surfing is to accept “ripe green” because high profits always come with high risks. If you catch up with the wave, you can get out of the line, if you don’t keep up, retail investors may be “stuck” with their investment.
Mr. Doan Khanh – real estate broker in Hanoi said that over the past time many investors have flocked to embrace land in small provinces such as Thai Nguyen, Bac Giang, Ha Nam, Bac Ninh, Hoa Binh… Yes In places, there are only wild plants and trees, scattered with a few houses, the roads have not been expanded… but there are still many investors who put down money with the belief that they will soon build infrastructure, forming a tourist area, or buying land to make a second home…
Mr. Khanh added: “Whether real estate is profitable or not depends on a lot of legal factors, infrastructure, and utilities around the area… rather than the ‘buying land is a good idea’. If you call it an investment, someone will make a profit, someone will lose it, someone will break even. Sometimes there are people who make a profit of 1 but show off their profit by 2 – 5 times, while the loss is obvious, they never mention it. Therefore, investors always have to carefully study the real estate they intend to buy, be careful before putting money down.”
Real estate experts estimate that investing in land in 2022 will not be as profitable as in previous years. Because, the land price fever will be strictly controlled from the beginning, avoiding the situation of changing hands to eat the difference of billions of dong in a short time.
In addition, the fact that many provinces and cities are involved in the “tightening” of subdivisions for sale of plots or tightening the declaration of real estate transfer tax, tightening of real estate credit, etc. will have a significant impact on this market in the coming time.
Mr. Nguyen Quoc Anh – Deputy General Director of batdongsan.com.vn admitted that the phenomenon of illiquidity in real estate transactions appeared while prices increased continuously. Individual investors, especially investors using financial leverage, need to pay attention to two aspects: Surveying the price level in areas, because real estate prices in the North in many places have increased by 3 – 5 times in the past time and kept at a high level, difficult to liquidate; investment cash flow is trending from the North to the Central region.
In addition, the volatile inflation situation caused real estate prices to continue to increase, negatively affecting the liquidity of the market, where there were no cheap goods, because everything pushed prices to the peak.
Mr. Dinh Minh Tuan – Southern channel director of batdongsan.com.vn also recommended that individual investors, especially investors using financial leverage, should pay attention when the anchor price is at a high level. will lead to difficulties in liquidity, hence, it is advisable to coordinate and manage cash flow in a more cautious direction.
Talking about investing in “surfing” real estate, Mr. Tran Khanh Quang, General Director of Viet An Hoa Company, said that the time of investors using financial leverage to surf is over, the market is changing from a state of mind. mid-term to long-term investment behavior and eliminate short-term trading opportunities, contributing to eliminating the group of “surfing” investors.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
