Property Real Estate Investment: There are many risks

Experts believe that the current “funnel” of resort real estate still contains too many risks for investors, including the legal as well as profitability.

Exits of resort properties are too narrow

At the seminar “Investing real estate resort: Opportunities, risks” held by CafeLand this morning, Dr. Nguyen Tri Hieu said in the past 3 years, the real estate market development is quite strong, the house Investing and pouring capital into big projects. Some are even offered to foreign investors.

Investment in resort real estate is still a lot of risk

However, the rapid development does not diminish the risks of the resort market, in contrast, is becoming more and more. The most obvious is the dependence of resort property on tourism. Without attracting tourists, real estate resorts will face serious difficulties – while this is a field that is very vulnerable to the impact of political and economic situation.

A 10% profit per year can be an attractive thing. “But what is the seductive 10% who is the guarantor? If they (the investor-PV) do not do it, what should the buyer do? What do they do when they fail to fulfill their obligations? “asked Dr. Hieu.

Not many resort projects come into operation so it is difficult to evaluate effectiveness

The same view, Rudolf Hever – director of Savills Hotels Asia – Pacific, also commented that most of the new resort projects are in the stage of offering but not yet in operation so the market can not be evaluated exactly effective. Meanwhile, buyers do not see all the type of investment, product line that they buy but only through advertising ….

From an investor perspective, Huy Nam’s economist remarked that, compared to other financial investment channels, the attractiveness of the real estate sector was 10% per annum. will belong to me and also enjoy the so-called timeshare.

“This attraction has made me have some time to plan for the purchase, but thinking and putting in comparison with other channels, can see, the liquidity of the property is far less. , ‘escape door’ of resort investment is more difficult than other investment channels, not wanting to withdraw is right away, “said Nam.

Mr. Nam also noted, the purpose of pouring capital into resort real estate is investment. “If you do not exploit for profit, will you be ready to move in just like when buying a home? With financial problems, if there is excess money to participate, if only look at numbers I would not recommend surfing or borrowing money to buy. “The risk of the movement is quite possible.”

Ownership is still unclear

According to attorney Tran Thai Binh, there is no clear legal framework, specialized in real estate business resort. In the texts available, the terms condotel, villatel have not yet defined clearly. There is no legal basis for the granting of ownership certificates for resort real estate products (if any, depending on each project).

Although some localities have “innovated” in the interpretation of the law on the provision of ownership. For example, the project is approved as real estate for sale, but the land use right owner is actually just land rent paid annually. Therefore, legally, the investor can not sign the purchase contract for the buyer. The buyer can not own the land use right certificate.

Legal remains the greatest obstacle today of resort real estate

Talking about timeshare, lawyer Tran Thai Binh said many people misunderstand that the latter can transfer is easy to profit. “Actually, when buying a timeshare, we only have a holiday package for a certain period of time, not a full ownership.” The benefit is only in the contract with the owner. Others have the right to take mortgages, sell them, and it is very difficult to talk about a specific plan in the future. “

“Recently, some investors have gone bankrupt despite the fact that the parent company is a big investor, so what is the benefit of the buyer?” The decision to sign the contract is still advisory at the moment, “he suggested.

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