Swinging at the peak of land fever, investors “live or die” when the market cools down

“Embracing hatred” for swinging at the top of “earth fever”

In the past time, in order to ensure the healthy development of the market and limit speculation, the State Bank and commercial banks have moved to “brake” lending activities for real estate business. high by market.

In addition, localities such as Vinh Phuc, Phu Tho, Hoa Binh, Hanoi, Lam Dong … have quickly made public and transparent information about planning, land use plans, land prices on locality. Even many provinces and cities have issued documents to stop the activities of plotting and selling land plots, and at the same time, strengthen the inspection and inspection activities with the phenomenon of “two-price” house sale (the actual selling price is higher than the recorded price). in the sales contract for the purpose of tax evasion).

In addition, real estate prices have been pushed up too high in many localities recently, and when experiencing many land fevers continuously, investors have to be more cautious in making capital investment decisions. All these moves have had a partial impact, the real estate market in many localities began to cool down and gradually stabilized again.

Notably, when the “land fever” passed, many investors “followed” the “hot” of the market, using financial leverage to invest, forced to sell off, quickly exiting the spiral of cooling down. of the housing and land market. The “dead on the assets” scenario will come true when land speculation is high and funding sources “lock the valve” of credit.

Forest scene “half-lives, half-dead” because of land, Nguyen Van Han (Hanoi) shared, in early 2020, he bought 2 plots of land in Thach That district for more than 3 billion VND, but of which 2 billion Dong is a loan from a bank and friends. However, so far, both of his plots of land have not been sold even though they have returned to the original price and accepted to lose interest on the loan.

“I bought when the market was in “peak fever” and now I can’t sell it, I can’t keep it. If I sell cheap, I lose a lot, but if I keep it, I’m afraid I won’t be able to survive, not to mention, I don’t know when I will be able to sell,” he said. Han said sadly.

Similarly, as noted by Dan Tri, when the market cools down, many investors who buy land in provinces such as Nam Dinh, Thanh Hoa… are constantly having to reduce the selling price in order to “get out” soon. These are mostly new investors, little knowledge of the market and investing in the crowd.

Beware of magnates

According to Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association (HoREA) – there is currently a phenomenon of magnates, land storks, or dishonest businesses taking advantage of information from meetings on land planning to Profiteering, spreading “duck” news makes the market heat up, land prices increase, as in Cu Chi and Hoc Mon districts (HCMC).

According to Mr. Chau, the factor of good transport infrastructure or the government promoting development in any area, the land price there will increase, but buyers need to consider because not all areas are suitable for planning. Because if you are lucky enough to choose the right residential development area, you will benefit, but if you encounter an area with a green park or road, surely the buyer will receive enough, and the stork or the dealer will benefit.

HoREA’s chairman added that the unit had warned but many people still risked and closed their eyes to buy high-priced land and couldn’t sell it. In the past, there were many businesses that acted as “traders”, blowing up land prices to be handled, and buyers suffered damage. Therefore, those who intend to buy land at this time must be alert, learn carefully, do not lose money.

In addition, according to investors and real estate experts, the trend of surfing when the market is hot or catching the bottom to wait for an opportunity is only for professional investors, who are proficient in the market and have a long-term vision. strategy. The investors who “died from fever” are usually F0 investors, new to the market, investing in following the psychology of the crowd, understanding information slowly, with little knowledge and inexperience in the market.

In particular, Mr. Vu The Anh (Hanoi), an experienced investor in Hanoi, said that before deciding to put down money to buy land, buyers should compare, analyze and study the price ground with other real estate agents. similar area or prices in previous years. Because, if the increase of that land is 50%, 100% or even more within a short time, it may be a virtual price, not true to the real value of that land.

Dan Tri waist