Investment in real estate is the industry picking money in our country. Besides old investment methods such as buying and selling; rent – lease; speculation … “surfing the land” is emerging as a method of making money quickly in the real estate.
How to make a huge profit from “surfing” the land and the latent challenges that this form gives investors? Please read Vietnam Real Estate in the article below.
Trends “surfing the land” today
“Surfing” is a new concept adopted by many industries including real estate. “Surfing” simple understand means that short-term investment activities of investors or “buy immediately” method as soon as the decline and sell as soon as the increase.
Unlike land or real estate investment, surfing real estate investment attracted many small and small investors to participate because their initial capital was not high, only about 10-30% of total The product value is able to conduct investment.
Specifically, he bought a mid-size apartment in District 9, Ho Chi Minh City when the new building was 50% with a preferential price of only VND780 million / unit and 15% advance payment and 24-month loan with interest rate 7% a year. After 2 months when the project is about to finish Mr. P quickly sells through this apartment for VND900 million. We can calculate the first two months minus bank interest, then P he collected over VND100 million.
With a small example, we can see the huge potential and profit from this “surfing” investment method. This is the reason for attracting many real estate investors to enter the market.
According to the leading real estate experts in Vietnam, the form of “surfing” the land if developed in the right direction and in the screen will bring positive effects and balance the market. However, in case of loss of control, complications, this method will directly cause unpredictable consequences for the real estate as well as the economy.
“Surfing” land -double-edged sword
It is easy to invest, less capital and easy to profit, so “surfing” land is much preferred young investors prefer. However, behind the flashy early profits are huge challenges that are extremely dangerous to investors that need attention.
In fact, many investors “surfing” projects have run aground or failed due to the fact that the investment project was not completed properly and handed over, causing losses even if it was unable to be completed due to lack of funds. In this case, investors with less capital and less experience will easily lead to bankruptcy.
As a new property market is evaluated and developed relatively stable, but in fact, the “aftershocks” suddenly easily cause the situation “freeze” or “virtual land” in the market. Investors who do not have the skills and careful calculations will easily fail.
More dangerous than the real estate giant is also involved in “surfing”. Accordingly, many real estate giants for the immediate benefit that focus on “surfing” in the item, when this item has not only serious problems for investors but also affect the category there.
Specifically: the land speculation in Da Nang past is a clear demonstration of this phenomenon. When information “leaked” tunnel across the Han River was born series of investors poured money into the land Danang investment, although the price increase several times higher. However, when the official planning information was approved, the price of land here has a strong devaluation that many investors plagued by “hug” too much land. On the other hand, the land market of Da Nang after the event became “frozen” again.
Undeniably the potential of “surfing” the land for real estate development as well as its profitability to investors. However, large investors, albeit small, need to be more cautious and have a clear strategic vision before deciding to join the venture.
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