Tips for investors not to swing the top of land prices
In recent years, land fever has taken place everywhere from urban to rural areas. In particular, the impact of Covid-19 makes production and business difficult, many people have brought money to invest in land, making the market even more exciting. Part of it is F0 investors, when they see the hot market rush to buy back at the peak of the wave, the fever passes, causing the market to slow down, buying and selling real estate becomes difficult to sell and cut loss, unfortunately. This is a fact that happens quite a lot in the real estate market.
Sharing in the press, real estate expert Tran Khanh Quang has revealed the secret for investors to catch the “wave” of the real estate market, avoiding peak swings and difficult exiting.
First, in order to invest successfully, investors must train themselves to be able to feel the market. In other words, investors must accumulate knowledge and experience to be able to recognize trends in the market or when they see a certain real estate, even just reading the news can be somewhat emotional. get “bait”. This ability is acquired in part by gift, but it is important to continuously practice to acquire it.
Second, investors must know how to anticipate market trends. This means that investors must constantly update information, contact many colleagues in the industry and have to go to practice to see the development trends of each segment, market in a certain region. .
Third, investors must understand the market context. Besides speculative factors, the real estate market is a market that is sensitive to macro and policy fluctuations. In which, the macro factors related to the banking system, interest rates.
Once the interest rates are cheap, the real estate market will increase in price, because the money flows to more potential investment channels, including the real estate market. If interest rates are too high and there is an asset bubble before, the real estate market may enter a bearish cycle. In addition, the factors of state policy are also extremely important such as monetary policy, fiscal policy, or policy on planning, investment and development of infrastructure for a certain area.
Finally, one of the effective secrets in many situations is that investors must have a solution to create added value for real estate. This is especially effective for professional investors and suburban real estate. Land will appreciate when it is invested in infrastructure or when adjacent properties are built. For central real estate, buying and repairing houses also creates added value for real estate. To do this, investors need to have the acumen to see the hidden value behind each real estate.
Mr. Trinh Nguyen Tuan Anh, Standing Member of the Vietnam Real Estate Brokers Association (VARS) in charge of the Southeast, Chairman of King Broker Group, recommends that investors do not determine to make a profit as soon as they buy their investment. fourth, because this possibility is very small.
This expert said that real estate with good potential for price appreciation but low selling price is very scarce, most real estate investment is an opportunity, the cycle and coordinates of the price increase must be determined. There are products with very high prices, but investors still pour money in because they expect the potential to increase prices; but there are cheap projects, investors are cautious to buy or not to buy because of risk aversion.
According to the Chairman of King Broker Group, real estate investment opportunities in Vietnam are diverse in terms of capital levels and segments. There are real estates that require an investment of up to several tens of billions of dong, but there are segments, such as land plots in the provinces, where only a few hundred million dong can be invested. The problem is that investors have to choose the right real estate for their budget and control risks.
In fact, when the market is “fever” almost every product is traded; even garden land, tree land, forest land… handwritten purchase and sale. Therefore, it is very risky when the market is bad, products without high legality will depreciate quickly and have no liquidity. Therefore, according to experts, at this stage, safety must be a top priority, investment must choose safe legal products. In the event of a bad market, real estate that meets legal requirements can still be sold, even if it sells at a loss, it can still be liquid.
Along with that, real estate locations with good social infrastructure have higher liquidity, when not being sold to investors, they can be sold to real consumers. With investment products in remote areas, or in localities with no potential, they should be avoided.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
