7 golden rules for safe, high-profit land investment

During the unpredictable land fever of 2017, buyers should prepare themselves with basic knowledge to avoid risks when conducting transactions.

The following principles everyone can note when investing in land for safety and high profits.

The first: Buy land with average to fairly convenient traffic connections. As the infrastructure gradually improves, the opportunity for price increases will increase. This is the way to target the potential for price increases of the land.

Monday: Buy places where residential clusters have formed with moderate to high density. Absolutely do not choose "deserted" places even though the price is super cheap. Investors need to be alert to cheap traps when choosing to buy land. Ask questions like why the price is so cheap, should you buy just because it is cheap, how much chance does super cheap land have to increase in price...

Land investment is considered a channel that brings high profit but also great risk.

Tuesday: Only buy land with complete legal documents. Land with red books, no planning issues, and construction permits are safe assets. The biggest risk for investors is buying land with incomplete legal documents. 2 bad scenarios that can happen in this situation are either it takes a long time to complete the legal documents; or it is impossible to issue the book (certificate) due to regulations and standards.

Wednesday: It is necessary to conduct land valuation before buying. Investors need to find a real estate expert, a valuation expert to get advice on whether the price of the land they intend to buy is reasonable or not. The common valuation method is to compare the prices of neighboring lands in the most recent time. You should only buy when the land price is equal to or lower than the market price. This is the principle of making a profit when buying, not waiting until selling.

Thursday: Consider the real liquidity of the land. Investors should do a preliminary survey of land transactions in the area they choose to buy. Need to find out if the demand for buying and selling transactions in this area is real or not. Only buy when the liquidity of the property is good (can be sold quickly when money is needed), avoiding the scenario of capital being tied up.

Friday: Do not invest more than you have. Do not use financial leverage, it is best to only use idle money. If there is a shortage, only borrow within the safe threshold (50% of the asset value or less). Before borrowing, you should consider the floating interest rate and how long you can bear the interest payments to anticipate the pressure. Buying land when the market is in crisis, prices drop sharply, is the golden time. The hotter the market, the more you have to know how to live within your means.

Saturday: You should invest in land in groups. The risk will be reduced when there are many partners working together. Land is a complex market, with many pitfalls for inexperienced investors. Investing in groups has the advantage that the knowledge of partners about land will resonate very well. Going alone can only go a short way, going together can go far.

According to VNE