With the capital spent to buy a plot of land of only 30 million VND, this Hanoi father has earned a profit of more than 500 million VND following only regarding 3 years of investing.
Recently, many real estate segments such as townhouses, land plots, villas… are experiencing a decline in prices because the liquidity of real estate products has plummeted, transactions in the market have slowed down, making it difficult to sell real estate. few investors are “disillusioned”. Even highly leveraged investors are worried by the increasing interest paid to the bank.
However, at times when real estate is “hot”, many investors have earned great profits when investing in this field. Anh Thuc, a real estate investor born in 1976 in Ha Dong, Hanoi, said he had won big in the land fever in 2021.
Thuc said that at the beginning of 2018, an acquaintance introduced him to buy a residential land plot in Vinh Loc – Thanh Hoa for only VND 30 million.
“At that time, following buying, I only determined to let the price increase for a few years to sell and I did not care regarding the market price because the purchase price was too cheap compared to many other investments,” Mr. Thuc recalled.
However, the land fever in 2021 has caused the price of his land to increase “vertically.” In April 2021, his plot of land was bought by another person to build a house for a price of 540 million VND, equivalent to 540 million VND. equivalent to an increase of up to 18 times compared to the original amount spent.
“Even I myself did not think that the price of this land lot increased so much following only regarding 3 years of money down,” said Mr. Thuc.
This Hanoian father also admits that this is the most profitable investment in his more than 4 years of investing in real estate.
The case of investment and big profit like Mr. Thuc is not rare in the market. There are quite a few investors with idle capital of several hundred million, aiming for land in remote areas, buying it there and almost “forgetting”. A few years later, the price has increased 4-5 times, even there are beautiful plots of land, large areas can increase from a few hundred million to tens of billions of dong.
However, most of these cases were bought from the time before the real estate price level was high; buy and psychology is to long by idle cash flow.
From his more than 4 years of experience investing in real estate, Mr. Thuc said that in the current market context, it is only suitable for investors with abundant money, investing in products that meet real needs. not suitable for investors using financial leverage to invest in highly speculative segments.
According to him, new investors must determine this time as an investment of 2-3 years or maybe 5 years. Therefore, investors must balance the cash flow to pay debts, avoiding the loss of liquidity leading to losses and bankruptcy.
The number of people interested in real estate tends to increase once more following the credit source is extended
Before the Government’s drastic moves in removing difficulties in the real estate sector from the end of 2022, Mr. Sy, the owner of a real estate transaction office in Hanoi, said that the real estate market will soon reverse. .
According to Mr. Sy, recently, the number of investors interested in real estate has increased once more. “Although they haven’t put down money to buy right away, it shows that investors have gradually recovered their confidence in the market. As long as the market has new changes, those who have cash will go down, liquidity will be activated once more, but it is unlikely to explode like in the past two years,” Sy said.
Meanwhile, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan forecast, the market may reverse in the near future. “If credit growth loosens in early 2023, the market will also follow that momentum and recover quickly. Especially, at the end of 2022, the Government has established a working group to remove difficulties for real estate and the revised Land Law being submitted to the National Assembly for approval is good news for this sector. Credit growth and policy are the bright colors for the real estate market picture so it is completely possible to expect an earlier time of ‘reversal’ and recovery, which is expected to be around the end of 2023.” Quoc Anh commented.
