Advice
Expert reveals 5 secrets of investing in land
30/11/2018 11:59 | Source: Vnexpress
Choosing good location, prestigious investor, reasonable price; considering legal issues and focusing on infrastructure are the secrets for investors to gain high profit from investing in land.

That is an advice of Tran Thanh Hoan, Director of Phuc Thinh Real Estate Investment JSC in the context of a strongly growing trend of investment in land plots bordering Ho Chi Minh City (HCMC).

1. Location

In field of real estate investment, location is an important element that creates value as well as basis for determining the profitability of real estate. Choosing a property with good location means its value has potential to grow.

Therefore, land projects located in the vicinity of HCMC, where there are lots of new industrial parks such as Duc Hoa (Long An), always attracts investors.

There are 18 industrial parks and light industrial complexes near provinces/cities with high population density and high economic growth rate such as Trang Bang district of Tay Ninh provinces; Cu Chi District, Hoc Mon District, Binh Chanh District of HCMC. 


Choosing a property with good location means its value has potential to grow

2. Prestigious developers

After identifying the right location, investors need to focus on selecting developer. “A favoraobe area attracts not only one investor. Most of real estate businesses are good at determining when and where to launch a new project. It’s not easy for a business to dominate an entire potential area. This gives individual investors more options but also makes it difficult to choose the right projects." Tran Thanh Hoan said.

In the same area, with the same type of product, the same price range, the factor that makes buying decision is prestige of developer. The more reputable the investor, the more secure your property is.

3. Choose the right product for your budget

Financial capacity is the first element you need to determine before deciding to invest in a land project. If you have an only idle amount and want to invest in real estate to double it, you need to consider a bank loan. Don’t borrow more than 50% of the property’s value to avoid the interest burden. 

4. Legality

Legality is the key to make a real estate product different from other couterparts. Therefore, investors should consider companies that are willing to develop high quality projects, demonstrate strong financial capacity and provide legal clarity, transparency and good after-sales policies. 

5. Social infrastructure planning and traffic connection

The project’s living environment must be fresh, well-planned and well-structured, with a variety of existing regional amenities to meet the daily needs of the future residents. Emerging residential areas, new urban areas with synchronized traffic systems are always chosen.