Real estate investment is an investment channel that is currently attracting a lot of attention. However, not everyone has the ability to invest successfully.
So what is real estate investment and what types of investment real estate are included? Are there any investment experiences to refer to?
🏡 Concepts you should know
Understanding the concepts involved will make it easier for you to understand and explore real estate investment opportunities .
1. What is the concept of real estate?
Real estate is a concept that refers to land resources as well as other assets attached to land. As works are built on land, plants… And based on different criteria, people divide real estate into many different types.
👉 Some properties of real estate
- Fixedness : because real estate cannot be moved, it can be moved.
- Durability : because the value of real estate ownership is 50 years or more, except in the case of natural disaster risks…
- Scarcity : Because the land fund is increasingly shrinking compared to population growth and urbanization.
In general, real estate includes assets related to land, which are fixed and cannot be moved.
2. What is real estate investment?
It is a transaction involving the process of buying – selling, leasing, managing or owning… that can generate a profit. Because real estate is similar to a commodity in the market. However, the value of real estate products is higher.
You will use your finance and capital flow to buy, sell, and rent different types of real estate. Profit will be the difference in the process of buying – selling, renting – subleasing… And this profit usually tends to increase over time.
👉 Investment channels you can refer to
- Some commercial banks.
- Public property in government agencies.
- Through public real estate auctions.
- Through real estate companies or exchanges, or real estate brokers.
Depending on your needs, experience and financial ability, you can choose the most suitable investment channels!
3. Real estate investment has many different types
Currently on the market there are many different forms of investment from the choice of real estate investors . Specifically, please refer to some ways to invest in real estate with the following types:
👉 Invest in real estate for rent
Real estate rental helps you get a stable income, profits increase over time. You can buy a property first and rent it out, or rent it out and then lease it back. Normally, the investor will invest in 2 properties, borrow about 30% of the property value and buy a 3rd one.
Invest in real estate in the form of lots
This form requires you to have a large capital, high financial capacity. Investing in this form of subdivision also requires you to have a lot of real estate experience. Not only that, you need to have acumen, grasp the needs and tastes of customers in the market.
👉 Surf real estate investment
This type of investment is very profitable but also contains a lot of risks. This investment channel is only for professional and large-scale investors. And surfing investment often focuses on the main type of real estate, which is land.
🏡 5 tips to help you invest more successfully
So to invest effectively, you should immediately note these 5 issues.
1. Real estate investment should pay attention to financial ability
This is a very important factor affecting your ability to invest. You need to know how much your real estate investment fund is? Specifically, how much money do you have? What is your ability to pay when you need to borrow money to invest?
You should not “swish your hand over your forehead” during the investment process. Please select projects in your ability to focus on investment. Specifically, you should invest when you have at least 50% to 80% of the value of the property.
If you need a loan, you must consider and research and compare different loan packages. Please choose the loan package with the most suitable loan interest rate so as not to create a payment burden. It will also help you avoid the pressures that affect your life.
2. Should pay attention to legal issues
You need to double-check the legal aspects of the real estate you want to invest in. Legal is the second most important factor that you need to keep in mind. Because it will affect the value of real estate, and help the risk of disputes later.
You must do a legal check through the real estate paperwork the seller provides. Then, research and refer to information from a variety of relevant sources. Like checking through the surrounding neighbors, going to the real estate…
For the most part, you should check the certificate of land use rights, the transfer contract documents. If it’s a project, you must carefully review the construction permits, handover commitments… The more you check, the safer you are and the more risks you can avoid.
3. Need to learn the aspects related to time
Time here includes many factors such as loan term, construction progress, handover time… Because if you have to borrow money, you need to pay attention to the loan term and interest rate of the loan. borrow. You need to balance the loan to avoid the pressure of repayment.
If you invest in a housing project, you need to pay attention to the agreed completion time. Is it necessary to monitor the construction progress to see if it is delayed compared to the committed handover time? Besides, should pay attention to the time factor to be more proactive in all related matters.
4. Check the infrastructure around the investment area
Infrastructure also affects the value of real estate. You should choose locations with convenient infrastructure, full of the most basic utilities. Areas with complete infrastructure and good utilities will help real estate increase its profitability.
Usually, real estate in the central areas will cost more than the suburbs. Places in busy locations and convenient traffic also make the investment process more convenient. An investment project has good profitability when it meets the quality of life conditions.
5. Don’t put all your money into investing in one place
You should not “put all your eggs in one basket” because that is very risky and high risk. Instead, spread the investment capital into different categories. You will avoid or reduce more levels of risk.
Besides, the dispersion of finance through many investment channels helps you to increase your chances of success. You will know and accurately evaluate the investment channels that are most suitable for you. From there, more flexibility in the process of choosing investment direction.
>> Learn more: Land law for real estate market
If in the process of investing in real estate but need to find out the price, please refer to the website mogi.vn. AequitasAudit.com is one of the websites to help you consult effective prices. At the same time, the website also updates a lot of the most outstanding real estate project information!
Wish you effective search and successful project investment!
Van Anh – Real Estate Information Analyst