Mr. Duc analyzes specifically about the opportunities of land fund in distant provinces.
Investment purposes
According to him, in Vietnam, the demand for real estate investment is high and the expectation of high profit. Real estate investment is the easiest and simplest way for this purpose. The past has proven that if you just buy in the right place, you can get rich very quickly in a short time. It is good if you can get rid of products early around 2021-2022; however, we do not know how investors who have been holding products since then will be.
With the hot development of the market, as well as the easy access to capital in the past, the valuation of assets can be easily pushed up. Therefore, the investment demand is almost endless, and the profit from real estate is very large. There have been times when investors bought and sold real estate “like hot cakes”, bought with the purpose of selling at a higher price to make a profit.
Photo: Ha Vy
For that reason, when the financial market is slightly tightened, many investors become confused. Many people sell at a loss of 30% – 50% but still cannot get rid of the products. According to Mr. Duc, it is simply because when making an investment, when people feel that there is no profit and no liquidity, they will not buy, even if the price is reduced.
“Buying for fun” purpose
This purpose is for successful people. This means they are investors who do not lack money and do not care much about the profitability of the property. It is understood that they buy land in the countryside and see it as a game for fun. If wrong, they give up; if right, they gain profit.
Mr. Minh Duc said that this group is very careful, but the number of people with this ability is not large. They can buy a piece of land far away, build a beautiful house, and leave it empty for fun, occasionally visit it, but do not consider it a real place to settle down. Simply because that piece of land is not suitable for the settlement needs of this group of people.
Is it really hot in distant land funds?
According to Mr. Duc, except for special pieces of land that are okay, many land funds are located in deserted areas, with no residents around, even if they are cheap, it is still not good. It is even unknown when those areas will be okay.
