In the face of the current land fever situation, besides the successful investors, there are still many investors who “fall”, even fall into the hands of a loss or be fooled.
Part of the reason for the failure of land acquisition is because the buyer does not thoroughly understand the project investor, legal project and do not carefully look at the contract before signing.
In the past year 2017, we can see that land type is one of the types of real estate investment attracted most investors. Recent forecasts also show that land-based investment will continue to be active in 2018. However, in the days when so many people are following the current “land fever”, how many people really know and understand the market as well as the risks that can be encountered? Here are five things to know when investing in land to avoid future risks.
Choose the investor carefully
When buying land for the project, selecting the investor is very important and absolutely should not be overlooked. A reputable investor with clear legal and regulatory capabilities will help ensure the safety of your money when it comes to investing. To find out if the owner is competent or not, you can find out about the history and information of projects that this developer has deployed before. Take a look at the 4 steps that determine the credibility of the owner.
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Understand the legal project before investing land
To find out whether the project is legally clear or not, you need to find out if the land plot you plan to purchase has been approved through detailed planning by the competent authorities or not, and the project has Decided to allocate land at a rate of 1/1500. In addition, the land must also be considered a valid residential land, allowed to be built on it and the surrounding infrastructure has been relatively refined.
Valuation of land surrounding the project
Determining the price of land before buying will help you avoid being “over” or buying too high compared to the school value. There are now a number of methods for determining land prices, such as: through banks for pricing or with assistance from local brokers. However, the best way to do it is to take time to look at land prices for similar land plots.
Carefully review the contract terms before signing
Losses from land-based investments are often due to subjective buyer and do not know the terms of the contract. The terms of the sale contract, including the deposit, must also include important information such as the name of the seller, the buyer, the specific price, the delivery deadline and the regulation. Penalties if either party cancels the contract. Also, you need to be alert to the words “seduce” the deposit in advance to hold the place from the middle when you have not signed a clear commitment.
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Consider financial options to select the right project
Last but not least, investing in land is a matter of financial viability. This will make it easier for you to buy land that is financially sound and at the same time limit the risks of being a “debtor” in the future. It is advisable for you to use your free money to invest. Absolutely limit the bank loan amount is too large, exceed 50% of the value of land lot. In addition, if you want to co-investment with friends, relatives, it is best to make a commitment agreement, clear agreement early on responsibilities and obligations of the two sides to avoid trouble later .
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