In order to invest in a secure land and still be profitable, what rules? The following are the key principles that are considered as a “guideline” for investing in high-profit land
During the 2017, buyers should prepare themselves the basic knowledge to avoid risks when conducting transactions.
Firstly: You buy land located at the location of traffic connections from moderate to fairly convenient. As the infrastructure is gradually improving, the opportunity to increase prices will grow. This is the way to target the potential increase of the land.
Secondly: You buy places that have formed clusters of population density from moderate to crowded. Absolutely not choose the place “copper not insulated” despite super cheap price. Investors need to be alert to cheap traps when buying land. Ask the question why so cheap, should buy just because of cheap, whether super cheap land there are many opportunities to increase prices.
Thirdly: You only should buy land which legal is complete. The land has a red book, no planning, building permits are safe assets. The biggest risk to investors is the purchase of unfinished legal land. Two bad scenarios that may occur in this situation are, or may take longer to complete; Or can not be issued (certificates) due to regulations, regulations.
Fourthly: It is necessary to conduct land valuation before buying. Investors need to find real estate experts, price appraisers to be advised land prices planned to buy the right or not. The method of universal valuation is to compute prices of neighboring land in the nearest time.
Only buy when land price is equal or lower than market price. This is the principle of making a profit when buying, do not wait to sell.
Fifthly: You should consider the real liquidity of the land. Investors should make a preliminary survey of land transactions in the area of their choice.
You need to find out whether the demand for buying and selling deals is real or not. You only buy when liquidity of good assets (can be sold quickly when the need for money), avoid the scenario of buried force majeure.
Sixth: you do not invest too much money. Do not use financial leverage, it is best to use only idle money. If insufficient, only borrow within the safety threshold (50% of assets value down). Before borrowing, it should take into account how long the floating interest rate and the interest bearing interest rate are going to anticipate the pressure.
Buy land at the market crisis, the price plummeted, is the golden time. The hotter the market, the more you have to know whether rice sauce.
Seventh: You should invest land in team. Risks will be reduced when there are many co-partners. Land base is a complex market, many pitfalls for non-experienced investors. Group investment has the advantage that knowledge of land-based partners will resonate very well. Going alone for only a short distance, traveling together can go a long way.
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