Under VND 1 billion, how to invest in real estate?

At the investment conference themed “Smart cash flow” recently held by Forbes Magazine, many questions are interested by investors is that with a starting capital of 500 million dong to 1 billion dong can invest in real estate. are not? Where to invest for low risk, easy profit?

Regarding these concerns, Mr. Ngo Quang Phuc, General Director of Phu Dong Group, shared that in the past time, there has been a trend of many acquaintances and friends contributing money together to buy land in the suburbs. This method can be suitable for those who have from VND 500 million to VND 1 billion, but there is still a risk that the contributors do not agree.

At the same time, the land price has increased a lot recently, so investors need to carefully consider the value of real estate before “down” money.

According to experts, investors can choose mid-range apartments, suitable for many people’s budgets because this is the segment with the most real demand, which can be exploited for rent…

“Many people who buy plots of land in the province just need information about the planning of garden land, they can “jump” in right away, but ignore the factor of how long it will take to be allowed to build? Therefore, when choosing this product Investors need to be careful,” Phuc said.

According to Mr. Phuc, investors can choose mid-range apartments. This type of apartment is suitable for many people’s budget, because this is the segment with the most real demand and can be exploited for rent. If you have a loan capacity and a guaranteed income, you only need 20-30% of the initial capital to be able to buy an apartment.

Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Investment Joint Stock Company, said that with capital from 500 million VND to 1 billion VND, it is difficult to find real estate products nowadays. Instead, buyers can use leverage at the rate of 50%, then there will be 1-2 billion dong to make it easier to choose products. For example, right in Ho Chi Minh City, investors can choose apartments of old projects in the price range of 1.5 – 2 billion VND. According to him, this market is being neglected but has good profit opportunities.

Recently, during the real estate fever occurring in many places, many investors have “jumped” into this market without understanding. Mr. Vo Huynh Tuan Kiet, Director of CBRE Vietnam, noted that not only in the stock market or cryptocurrencies, even in real estate, there are many people who invest in the movement without understanding.

Mr. Kiet said he had witnessed many acquaintances say that they could buy land in the province at a cheap price, but it was much higher than the actual price of the local people who were trading, not understanding the position of that plot of land. Many investors only pay attention to how much money they have, but do not consider their ability to control their cash flow.

“There are projects that buyers find very attractive, only need to pay 20-30% in advance, so they immediately make a deposit, “jump in” because the market is up. However, when the cash flow malfunctions, it is not enough. ability to pay for the next payment, they must accept to sell cheap, even cut losses “- Mr. Kiet cited.

In order to successfully invest in real estate and avoid losses, Mr. Tran Khanh Quang advises investors to avoid “orphaned” real estate but to buy “lit” real estate. The concept of “orphaned” refers to the land plots and projects located alone, without connection, with nothing around within a radius of about 1km.

“Property that can be bought must be lived in and sold. Investors should avoid projects that are labeled as high-class but have no utilities or connection infrastructure around. The word “lights up” refers to Projects with real housing needs will have a price, but like walking past an apartment that has been handed over with only the light from the security room, you should not buy “- Mr. Quang experienced.

According to Thai Phuong