Investment in land plots is attracting a lot of investors across the country to participate. However, this is also a potentially risky segment. So, to bring efficiency and high profitability, what principles should investors pay attention to? That will be revealed by AequitasAudit.com in the following article!
❓ Should you invest in land at this time?
Real estate is a hot field with great profit potential. In particular, land is an attractive product category that is easy to buy, easy to sell, and has high liquidity. However, before the slowdown of the global economy as well as in Vietnam due to the impact of the epidemic, should investing in land at this time or not?
According to assessments from leading experts in the field of real estate, many areas in our country have had stronger links and development. The population is also more concentrated. As a result, the demand for housing increases. Therefore, the local authorities in the places are planning to develop new residential areas and urban areas. Therefore, land has good transactions and increases in price.
That trend will continue in this 2021 and the following years. According to DKRA Vietnam’s forecast, the new supply and demand of the land plot segment in 2021 will recover and increase compared to 2020. So land is still the leading segment of the real estate market. They will remain the “pet” of real estate investors.
✊7 golden rules to remember when investing in land
Although, land investment is still a hot segment. But in order to invest effectively, obtain high profits and limit risks, investors should note the following 7 principles of land investment :
#first. Choose land in a prime location
This is an extremely important criterion when investing in real estate in general and land in particular. Accordingly, you must choose land located in a prime location. They include the following basic factors: good traffic connectivity, no flooding, no traffic jams, close to many major roads.
Having these key factors, the ability to develop and increase real estate prices is huge. Because they will attract a large number of people to live and work. Since then, infrastructure works and community utilities were formed. And those things will naturally create advantages for the investment land.
#2. Select project land in residential area
The experience of investing in land for effective and safe projects from leading experts in this field is the priority of choosing land in residential areas. Because before deploying and pouring thousands of billion dong into the project, the investors carefully researched the market, demand and traffic situation in that area.
Moreover, the area with a relatively dense population will be much better than the place where the “nowhere in the field”. Because the places are sparsely populated and remote, you will have to spend a lot of time waiting for the traffic infrastructure to be completed. The process of population concentration is also not overnight.
However, when choosing project land in a residential area, you also need to spend time and effort to learn about the objects living around. What is the lifestyle of the people there, what they do, what their income is, etc. Along with that is information about the investor, when the investor can sell the land . Having a solid database, you will weigh the benefits when investing. From there, make the right decision to “down the money”.
#3. Check the planning and legality of the land khu
Regarding real estate, you need to pay special attention to legal issues. Land for effective investment should choose a piece of land with clear legality. And they do not stick to the planning area of the State or are in the process of a dispute or a bank mortgage.
In fact, many individual investors choose to trade off legitimacy for price. However, this comes with great risks. It is possible that the project developers cannot complete and provide the documents as committed. Or buyers will have to wait a long time to get the book out. Worse is not being able to book because the land is entangled with regulations.
#4. Know the land price
Many people participate in land investment but do not have the experience and knowledge of accurate land valuation. Leading to a mistake is buying land at a price higher than its actual value at the time of purchase. This leads to a great risk, if you want to sell in the near future, it will be difficult to sell because you bought it at a high price.
Therefore, if you do not have experience, you should seek the help of appraisers or hire appraisal services before buying. Or you can apply the common valuation method is comparison. You need to find out the data, carefully survey around the land, the area you intend to buy. From there, you will grasp the basic price of similar plots and make an accurate buying decision.
#5. Determine the liquidity of the land khu
The liquidity of the land is the ability of real estate to convert into cash. A piece of land with high liquidity means that it is easy to find a buyer immediately or in a short time.
This factor is especially important when you want to invest in land surfing. Because the land has high liquidity, the easier it is to sell quickly. Since then, investors will soon recover capital when they need money, avoiding the situation of unwillingly burying capital.
#6. Balance financial problems when investing
Balance financial problems when investing
If you have no real estate investment experience, where should you invest in land ? According to the share of veteran investors, you should choose affordable land products. Prioritize using idle money to buy. If you do not have enough money, you can borrow from relatives and friends. Because interest rates are low or no interest.
You do not use financial leverage. If so, it is necessary to carefully calculate the family’s total income, ability to pay and not mobilize more than 50% of the land value.
#7. Group land investment
Real estate is a complex market. There are many pitfalls for young, inexperienced investors. Therefore, the form of investment in groups is being applied by many people to reduce risk. As well as contributing to improving the chances of success from benefiting from market understanding and knowledge of team members.
There is an African proverb that says “If you want to go fast, go alone; if you want to go far, go together”. Yes, the knowledge and understanding of an individual will not be equal to the collective. When traveling alone on a short distance it will be very fast, self-employed without having to go through anyone. But if you want to develop in the long term, you have to go together.
In that group, there should be a lawyer, a market expert, an investment advisor. Thus, everyone will support and help each other in the investment process. If there is a problem or problem, it is easy to find the most effective solution quickly.
Above are 7 “golden” tips when investing in land to remember and apply. They are all secrets used by longtime investors to analyze and evaluate the market and make investment decisions.
Hopefully through those sharing, readers can improve their understanding and gain experience before stepping into investment. And if you want to find real estate classifieds, don’t forget to visit AequitasAudit.com! Trusted destination, side by side with your success.
-Thuy An – Real Estate Information Analyst-
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