Investing in real estate so safe? The following article will help you answer this question.
According to many economists, real estate is still one of the few fast-growing and stable investment channels in the current context. The survey from Vietnam real estate shows that the market has many forms of investment real estate, such as: buy apartments and then lease, surf the project also “on paper”, buy old and broken houses for sale. … in which the form of investment “surfing” is being preferred by many investors.
Before going into the analysis, we need to dissect how a real estate investment surfing form is like?
Investing “surfing” real estate?
It seems that the term “surfing” is extremely familiar to professionals in the real estate market, which is a completely new term for many people when it comes to real estate. According to the explanation, surfing investment is considered a form of investment profit, you only need to spend some money, worth 15% of the real value of the apartment/land to temporarily hold the place.
Then, when the market starts to heat up, many people are interested in the apartment/land that you are holding, and they accept to buy them at a higher price from several dozens, even several hundred million. the money you spent initially. So, in a short time you can own a large amount of money. Compared to sending money to banks to “eat” the interest, investment “surfing” more effective.
It is because of the profit that surfing brings about the fact that many individuals decide to embrace a series of apartments/land that they claim will have a lot of people interested in the future, and This is the status of speculators hoarding real estate property/land. Specifically, in the recently launched apartment projects, there are many customers buying at the same time 10-20 apartments, even, someone bought the whole floor apartment for resale.
As assessed by experts, the fact that individuals investing in real estate surfing will act as a factor boosting the number of flats from the projects, launched to the market rapidly. Since then, the market has picked up in a positive way.
Especially in the context of reduced interest rates and easier access to bank capital. At the same time, when the investment channels such as securities, gold fluctuate, interest rates on deposits are low. While the real estate sector is showing signs of recovery, with the launch of a series of super quality projects with the land fund such as Vinhomes Central Park, Vinhomes Golden River Apartment … the investment surf Real estate waves are the perfect solution.
However, experts also point out another aspect is that the core nature of the market is based on the actual needs of customers. Therefore, only good projects, reputable investors and projects are built, the investment opportunities surfing is quite safe, otherwise investors are at risk of ” strand”.
5 surfing experience real estate
Choosing an investor is the first and most basic thing in buying a condo in general. The theory is very long but just note the following: capacity investors, the projects they have completed have been sticky “seal” does not. Want to know what, you can search the Internet, consult friends are doing in the real estate. Or you can refer to this article immediately: 4 steps identify the owner credibility.
The construction period is proportional to the time of large capital occupation and the ability of the market to move high leading to high risk and low liquidity. General construction time as soon as possible, however with high-end apartment complexes, about 2-3 years because more time to invest in building utilities and finishing works. Intermediate condominiums are usually less than two years old and social housing complexes are less than 1.5 years old.
The number and type of apartments: the greater the number of products (apartments) entering the market in the future, the greater the risk of liquidity and growth. If the cities you plan to buy are new buildings that are constantly being built, then when you sell your main competitor is the Owner. Of course, the price is determined by them, not you, and usually lower than expected. Therefore, your goal is to “buy and sell” so it is best to choose the easy to sell apartments. According to Vietnam real estate survey, the easy to sell apartments are usually the apartment area of 60sqm – 90sqm, there is about 2 or 2 + 1 bedroom, balconies east, south and southeast. The floor area is from 6 to 20 except the 13th floor because many people think that number 13 is unlucky.
Use financial leverage: You do not need 100% of the value of an apartment to trade apartments, often professional investors use only 50-70% of the loan to do this business. For example, if you buy 30% of the value of the apartment and sell it at the time of the pre-payment 70%, it means 30% of your own capital, 40% of your loan, and about 1 year. But profits are charged on 100% of the value of the apartment.
Note when using financial leverage, it is the time to lend as much (15-20 years); The interest rate in the first few years is as favorable as possible (in this model only about 1 to 2 years is the final settlement), especially the penalty interest must be very good because there are banks fined severely, you save this notes carefully.
Choose the right time to sell: Depending on the project, it is recommended to sell before the project (70% closed) or handed over (70% closed) or short-term ( less than 6 months). After the handover over 6 months the apartment almost no growth value much more.
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