Investing in real estate for security is something that many real estate investors are interested in today.
Currently, the real estate market has many forms of investment, such as: investment for rent (buy apartments and then lease), investment surfing projects, buying old and then repaired homes. In which the surfing investment form is preferred by many investors.
Before going into the analysis, we need to dissect how surfing investment form is like?
What is surfing investment real estate?
According to the basic explanation, surfing investment is considered as a form of investment profit, investors only need to spend a small amount of money about 15% of real value of the apartment / land to temporarily hold 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 dozen, 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 apartment / 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.
So, how is surfing investment real estate so safe?
First: Choosing a reputable investor is the first thing you should consider when choosing a project to invest in surfing. To choose a reputable project investor, you need to consider the following factors: the investor’s ability, the projects they have completed have any “stick”, what traditions say about them. To find out about this, you can search the Internet, consult friends who are doing business in the real estate field.
Second: Note the time of project construction. Accordingly, the construction time is proportional to the time of large capital occupying and the ability of the market to move high, leading to high risks and low liquidity. In short, the construction time as soon as possible, however with the high-end apartment complex is 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.
Third: The number and types 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 Realestatevietnam survey, the easy to sell apartments are usually the apartment area of 60 – 90m2, there are about 2 or 2 + 1 bedroom, balcony 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.
Fourth: Do not forget to use financial leverage when investing in real estate. 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 Note this carefully.
Fifth: Choose the right time to sell. Depending on the project, it is recommended to sell before (70% or less) of the project (70% closed) or hand-delivered (after 70%) 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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