Should you buy when the market is having a land fever? 3

Should you buy when the market is having a land fever? 3

Land fever has spread to many provinces and cities, raising concerns about price bubbles along with concerns about whether to invest and buy at this time.

To answer the concerns of land-based real estate buyers, General Director of Viet An Hoa Company, Tran Khanh Quang, said that land buying behavior depends on many different needs.

Mr. Quang pointed out that there are 3 main groups of customers buying land in the current market: speculators, investors and buyers for use (accumulation, building houses, for children).

For speculators: Currently, the real estate market in Ho Chi Minh City in particular and many other provinces and cities is in the hands of speculators and is led by this group.

Land for a project in Phong Phu commune, South Saigon area.

For investors: Land fever is both an opportunity and a challenge for investors.

The challenge for investors is that even though they have high knowledge and understanding of the market, it is difficult for them to avoid having the mentality of buying according to the crowd.

Advice for investors is that if collecting land when the market is hot with idle cash flow, only spend 30% of the cash to invest in real estate at the present time.

For buyers for personal use: This is the group of customers with the least experience in the market and are most likely to suffer disadvantages if purchasing land during a hot market time.

For those who buy land for use and have to borrow money from banks and are financially strapped, they can temporarily delay for 12 months to survey the market and then make a decision based on actual developments.

A contradictory reality today is that, although land fever occurred and lasted for 4 consecutive years (2015-2016-2017-2018), it is impossible to determine when the market will enter a recession cycle.

Expert Tran Khanh Quang said that at any time, whether in crisis or fever, the real estate market has mixed buying and selling needs.

Answering the question of whether after the land fever, there will ever be a decline scenario, Mr. Quang said that if there is an up cycle, there will be a down cycle.

If the legal land is complete, located in a place that can be built, exploited, lived in or rented, the possibility of price reduction is very low.

Leave a Reply

Your email address will not be published. Required fields are marked *