Advice
3 options for safe investment when liquidity of land lot segment drops
29/09/2018 16:46 | Source: Vnexpress
Many investors have shifted their money into real estate for lease or short-term deposit in banks as the liquidity of land lot segment has declined sharply.

Nguyen Mac Hoai Nam, General Director of Nam Phat Investment Advisory Company, said when the land lot sales volumes decrease, the market is in a waiting state. Capital flows will be diversified and transferred to other investment options which are more dynamic. These are assets that can be easily leased, bought or sold, and controlled despite lower yields then land lot.

3 options for safe investment when liquidity of land segment drops

The expert recommended three options below for property investors: 

Affordable apartment

In the next 6-12 months, low-end apartment, which is considered one of the least risky real estate properties, will become attractive to investors, especially affordable ones with prices under VND 1.5 billion. This segment is never affected by recession thanks to the sustainably high demand on the market. 

Townhouse

This is another segment attracting investors with capital of VND 4-6 billion. Townhouses have more secure properties than land lot such as: more stable prices, more complete legality and townhouse can be exploited. Compared with land, townhouses are also often higher valued when investors want to borrow a bank loan for doing other business.

Short-term deposit in bank

With interest rates of 5.3-5.4% per annum and still affected by inflation, short term deposit does not bring expected cash flow. However, this investment option has great benefits of cash control. When the market fluctuates, cash is king, helping investors take the initiative when looking for new opportunities.