Land is a non-competing investment channel

20/03/2018   Viewed: 769
Fever for four consecutive years, the ground is considered as a non-competing investment channel because profitability exceeds the rest.
Deputy Director of International Business Department - Marketing of Ho Chi Minh City Economics University, Huynh Phuoc Nghia said that at least in the next 12 months, the land investment channel in Saigon still attracts all capital flowing into opportunities. The price hike is still huge despite land fever that has lasted through 2017. Nghia said that there are many reasons to prove.

According to the expert, compared with investment in apartments, new product lines such as officetel, hometel, condotel, land investment channels are superior to four factors: the ability to increase prices, High liquidity, limited supply and liquidity. In the immovable property group, the land price has the advantage of capital cost (the cash flow to buy land is often cheaper than the townhouse and villa).

Meanwhile, compared with other financial investment channels such as savings deposit, gold, foreign currency, securities, land surpassed stability, anti-slip high prices and a safe haven for cash flow. medium and long term.

He analyzes, saves fears of inflation, gold investment must accumulate affect the safety or cost of depositing, securities fluctuate too fast and difficult to control. With the constraints of these financial investment channels, the land becomes a stable and secure alternative with attractive returns, averaging over 20% annually over the past four years and promising to continue. maintain this style in the coming time.
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Land is forecast to be the king's investment channel in the next 12 months. Illustration

In addition, the ground became the investment channel of the King, according to Mr. Nghia, due to the real estate market still under psychological pressure is quite heavy. At least two psychological groups are contributing to this investment channel to reach a state of non-competition today.

Asian Psychology: Due to the practice of his father left, rich and poor must try to land a stick. Land is a valuable asset in the traditional sense of the majority of East Asians, including Vietnam. Over the course of several stages of the housing market, this concept is reinforced. The belief that land prices increase over time or keep prices better than other properties make Vietnamese people always prefer this type of product, even they use land as a dowry, accumulation of long-term assets.

Crowd psychology: The land-based investment market over the past four years has been increasing steadily and many investors have won big at this stage, forming a form of mass investment. Many people do not care about evaluating the pros and cons of products that are still pouring money into investment as a movement. Crowd psychology is often vigorous and blind.

Although evaluating land as a channel for investment, Mr. Nghia not forget to give some warning about this investment channel. Accordingly, not all land types have the opportunity to increase prices suddenly. In fact, the ground is only really worth or maintain the value chain after the growth cycle if the following criteria are met: in the area of ​​urban development, synchronous transport infrastructure, business The development area, the planning.

In contrast, land located in an underdeveloped area, or not in a well-developed urban development strategy, or in a far-off location, can turn investors' expectations into bombs, They even buried capital and lost money. "Therefore, despite the investment channel of the king, not the opponent, but investors need to lay the rules of profit as the higher the risk of a large stake in this type of real estate," said Nghia.

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