Share of a real estate expert who has trained many students from all over the world. Most investors take risks and lose money because they do not master these 5 effective property investments secrets. This is a wise thinking method to help you make money from real estate investment.
Tip #1: Choose liquid real estate
This is a big mistake that many people are burying their money in too far from the center… or the apartment and adjacent properties contributing capital – have stopped or delayed construction, some high-end real estate segments
Whether you intend to invest in real estate in the center or suburban, residential, townhouses, apartments, townhouses or villas, the first criterion is liquidity. Liquidity is simply understood as the ability to convert into cash. Suppose after you buy that type of property, the question is: Are you selling right now or not? Maybe the answer is no. Even need money, now selling a little cheaper, anyone buy right away or not? Maybe the answer is still: No! You buy in very easily and “get out” is very difficult. Especially if you are going to borrow money from a bank or acquaintance to invest, it may take a long time or you don’t know when to withdraw your money. Then you will feel impatient because the property does not increase in value, sells no one to buy and still has to pay interest every month.
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Secret #2: Make money as soon as you buy
You deposit a large amount of money or pay all the money and then you can’t get out the red book or there is a dispute, lawsuit … is also a risk that will make you lose money. So you need to remember: Always double check property legal information by asking the commune or ward cadastral; district resource department or authorities, people knowledgeable about real estate …before making a deposit or purchase transaction. The question you should ask yourself is what is the legal status of this property?
Tip #3: Look closely at the relationship between Cash Flow & Capital Gains
If you buy a property, build a house and have tenants right away, that place is called cash flow. If your real estate is near schools, industrial parks, hospitals… you can do business and make money right away, that place is also called cash flow. On the contrary, there are many places that you buy and build to rent, but there are no “ghosts” to rent or do business. That place is called no cash flow. The capital gain factor is simply understood as the potential for price appreciation of real estate.
Tip #4: Legal standards
Some legal real estate is not standard: For example, there is no red book or it is unlikely that it can be done. During the transaction process, you are promised by the landlord, landowner or investor that: Rest assured, don’t worry, I will make a red book for you… You deposit a large amount of money or pay it off in full, then the land certificate cannot be issued or there is a dispute, a lawsuit… also a risk that will cause you to lose money. So you need to remember: Always double-check property legal information by asking someone knowledgeable about real estate…. before making a deposit or purchase transaction. The question you should ask yourself is what is the legal status of this property?
Secret #5: Space & Feng Shui- Infrastructure & Services
Electricity and water are often lost, infrastructure is often flooded, and there are no trees, parks around, no children’s campus, high service costs, poor construction quality… Many people buy real estate products just because of the cheap and affordable factor… but ignore this factor.