How to buy real estate profit at the time of purchase?
According to a real estate expert, if there are 3 houses next to each other, the investor (investor) must know which one has the most advantages, the easiest to sell (liquidity), which means that buying is profitable at the time of purchase. You don’t have to wait for the sale to make a profit.
Sharing recently, Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam said that, in investment, investors should pay attention to the liquidity of products. Buying real estate is profitable immediately, easy to sell or not. It is possible to buy real estate without profit right away, but it must be sold immediately.
This expert advises, to achieve this, investors must know how to calculate the worst case scenario in real estate investment. “Don’t think your child is always beautiful. The same goes for real estate investment. When buying a piece of land, a house, if someone criticizes that real estate as not square, or small alley… then when you are the owner of that real estate, you have to put the situation in the buyer’s position to properly understand the value of that real estate. In investment, should choose any real estate that has liquidity, “said Dr. Khuong.
In the same opinion, personal real estate expert Phan Cong Chanh said that when buying real estate, we must make a profit as soon as we buy it, not as soon as we sell it.
According to this expert, when investing in real estate, money is only one of the factors that help investment success. Other more important factors that investors need to pay attention to, the first is how to think and think in the market; second is the tool, do you know how to use the tool when entering the market; third is the skill, the skill of using the tool effectively or not is another matter; Fourth is industry knowledge. Many investors lack knowledge about the industry, so when entering the market, they are confused about where to start and how to legalize.
In which, knowledge of the industry has 4 issues that investors must learn deeply. The first is knowledge about each segment, for example, how is apartment investment different from land plots, how is investment in townhouses, motels… ; the second is knowledge about the market, when to enter the market, in which region, how much money to hold, how to enter the market; The third is the legal factor, what are the basic legal types that need to be distinguished, which is currently very few investors understand. If you do not know the law, holding VND 100 billion to invest is also very risky. The last one is money, finance. Based on these factors, many investors can buy surprisingly cheap real estate, profit at the time of purchase.
Having shared in the press before, expert Phan Cong Chanh said that investors must understand in the world that there are two ways to make money from real estate, one is capital gains, and the other is a cash flow story. When we talk about capital gains, we talk about buying and selling.
“When buying, we have to make a profit when we buy, not when we sell. Often investors are wrong in that at the time of the market price and wait for the market to rise and then sell. But the market does not go up forever, the market has 3 states of up, down and sideways. So when investors enter the market equal to the market price, it means that 70% of the opportunity has been lost,” Mr. Chanh once shared.
About the story of cash flow, such as investing in a row of motels for rent. But the related story is whether the investor has enough skills, experience and knowledge to manage a group of students and tenants. There are many cases of investment in accommodation business in Ho Chi Minh City, Binh Duong, Dong Nai, but in the end have to sell the investment because it simply cannot be managed.
Besides, negotiation skills are also essential to buy profitable real estate right away. Real estate includes houses and land, investors have to wonder which new price increase? Apparently only the land rose. Where land is likely to increase in price by more than 6 million/m2/year, the investment is definitely profitable.
If buying an apartment, there are only 2 times when the investment is profitable, the first is the first time the project is announced, that time is the cheapest; The second time is when the house is about to be delivered, when the buyer comes, they see all the amenities and the new house makes them excited to go in, then I can sell at a profit.
According to expert Phan Cong Chanh, it is extremely important to enter the market at what time, in which segment and region. For example, buy a townhouse about 90m2. The owner wants to sell 1.4 billion, after negotiating and negotiating, investors buy 1.3 billion. Within about a week, someone paid that investment 1.5 billion. That means profit at the time of purchase.
In addition, investors also need to pay attention to the principle of profitability in real estate that where there are people, the land price will increase. Along with that, investors should become the “boss” of the segment and must be good at certain segments. The resources of individual real estate investors are limited, so just “boss” those two, according to Mr. Chanh, has narrowed the scope a lot.
By Business and Marketing