How to invest in real estate with high profit opportunities

Real estate is the most profitable investment channel, however, to have a chance of high profit, you also need to know how.

When investing in apartments, you should choose a project with complete legal documents, good location, and reputable investor.

Choose the right segment

According to Mr. Ha Van Thien, Deputy General Director of Tran Anh Group, the real estate market currently has 4 main segments including apartments, land, townhouses - villas, and resort real estate. Investors can choose suitable segments to invest in.

In the apartment segment, investors can choose the methods of short-term investment and rental investment. For short-term investment, which means investors buy and wait for the selling price to increase by a few dozen percent before selling, it is necessary to choose a project with full legal documents to ensure construction progress.

In addition, priority should be given to projects with a small number of products, preferably under 1,000 units, because the fewer the products, the lower the competition, the easier it is to sell, and the higher the profit margin. Price and location are also points to note when choosing to buy an apartment for investment. A project with a central location, near schools, supermarkets, and many amenities, will increase the price margin even more.

For those who invest in apartments for rent, they should also choose to surf because this is the factor that determines the high rental price. The point to note for customers buying apartments for rent is to choose projects that have basic furniture available when handed over such as bathroom equipment, kitchen, etc., so as not to have to spend a large amount of money on completing the initial interior.

When choosing to buy a real estate product, it is necessary to check the project's legal status such as investment policy, 1/500 planning decision, construction permit... to avoid the situation of encountering a project selling "green rice" and raising capital without sufficient legal documents.

As for the land segment, this is a product line that has always been popular in previous years, but from 2022 until now, it has been less chosen by investors. The reason given by Mr. Ha Van Thien is low liquidity, high investment capital, and high risks.

To invest in land, investors need to have a large amount of capital and extensive experience, understanding the field. This is a segment that requires sensitivity, especially investors must know how to check planning information, understand administrative procedures related to land.

In addition, you should choose land projects near densely populated areas, good traffic infrastructure, located around industrial parks, near markets, schools, etc. Projects located far from residential areas, with few residents, far from industrial parks, and not many living amenities will be very difficult to sell.

Customers should limit bank loans, because it is difficult to sell land; if they rely heavily on loans, they will be burdened with monthly interest payments. The price increase margin in this segment is also not sustainable, prices may be high when there is a fever, but then it will freeze and it will be difficult to sell.

According to Mr. Thien, before customers put down money to buy land, they should carefully check the legality of the project, whether or not each plot can be issued a certificate. Currently, many land investors are "stuck" after spending money to buy land for many years, but still cannot hold the red book in hand, because the project does not meet the legal requirements, leading to lawsuits between customers and investors.

The townhouse – villa segment has been sought after by investors for many years with the advantage of bringing high usage value, both as a place to live and a business location, or can be rented at a high price. These projects are often located in convenient locations, on main roads in central areas, and are a stable source of profit for investors.

However, this segment has disadvantages such as quite large investment capital, from several billion to tens of billions of VND. For this product line, customers buy mainly for renting or surfing. In particular, investors for rent should choose projects with large areas, choose apartments located on main roads, with a minimum area of ​​4x15m2, including 1 ground floor and 1 to 2 floors, near the center for easy renting and high rental prices.

For short-term investors, you should choose products with small areas, low prices, both for living and renting out for business to make it easier to sell. You should limit bank loans, if you borrow, you should choose a loan package with a long term of 15 to 20 years so that the monthly interest rate is low, the rental income can be just enough to pay the bank. In addition, you should choose projects that are completed and then sell, avoid buying projects that are not yet built to avoid construction costs as well as limit legal risks.

For resort real estate, this is a long-term investment product line. Normally, when selling this product line, investors will commit to leasing back the product that customers invest in for exploitation. However, from 2020 to now, most buyers are stuck when investors cannot fulfill their commitment to pay for the product rental. In addition, projects are behind schedule, paralyzed in transactions.

However, Mr. Thien believes that if investors know how to invest, the resort real estate segment still brings huge profits to investors. Specifically, customers should invest in buying products such as townhouses, villas in large projects with many amenities and available products. After buying these products, investors spend an additional amount of money to make the interior, then join hands with real estate operators to rent the property by the day to exploit.

“Currently, in areas like Phan Thiet (Binh Thuan province), the daily rental price of a 3-bedroom villa is always between 4 and 6 million VND for weekdays and 8 to over 10 million VND for weekends or holidays. In Ba Ria - Vung Tau, the rental price is even higher and there is always a shortage of rooms. In fact, this investment method is not difficult. Investors authorize the operating unit to find guests, exploit, clean, and share profits 70-30 or 60-40 with the operating unit,” said Mr. Thien.

Choose investor and payment method

According to Mr. Nguyen Hoang, an independent real estate expert, when investing in real estate, investors should carefully choose the investor, because this is the person directly responsible for the progress, quality and efficiency of the project. A reputable investor will ensure the project is completed on schedule with a high quality commitment, minimizing the risks that customers may encounter.

If customers do not research the investor carefully, they may risk encountering an investor who is not capable of implementing the project. On the other hand, a reputable investor will provide many attractive incentive policies, creating the most favorable conditions to ensure the interests of customers.

Mr. Hoang said that a good investor's profile is evaluated by the projects they have participated in, both in terms of progress and quality. All information about the investor's capacity and reputation will be reflected in this profile. Therefore, learning about the investor's profile is considered the top factor for evaluation.

Business reputation is extremely important, investors with good records will always try their best to complete the project as committed to customers, create a reputation and affirm the brand in the market. The "cleanliness" and reputation of the investor contribute to making the real estate more valuable.

In addition, the financial potential of the investor determines the quality and scale of the project. Investors with strong finances will bring the highest confidence, avoiding cases of frozen and abandoned projects during implementation, as well as unexpected crises. Customers also need investors with experience in project development.

Ms. Nguyen Thi Thanh Thao, Sales Director of Phu Dong Real Estate Joint Stock Company, believes that customers should choose projects with good payment policies, such as bank interest support, slow payment progress, monthly installment support, etc. This will help customers have investment profits right from the start of buying real estate, without financial burden at each payment.

At the same time, customers should use bank financial leverage when buying real estate, but should choose loan packages with long repayment periods, so as not to face financial burdens in paying principal and interest.

Source: https://baodautu.vn/batdongsan/cach-dau-tu-bat-dong-san-co-hoi-sinh-loi-cao-d225396.html