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The Covid-19 pandemic broke out again, where should investors invest their capital?

Friday 07, 08 2020
Although affected by the Covid-19 pandemic, most experts in the industry said that real estate is still an attractive investment channel in the medium and long term.
The Covid-19 pandemic broke out again, where should investors invest their capital?

Sharing at the recent seminar, Ph.D. Can Van Luc - Finance and Banking Expert, said that with the current market context, pouring money into real estate, gold, or securities ... depending on the "taste" of risks of each investor. There are investors who are afraid of risks, the savings channel is still the preferred channel. If you don't like the risk, divide your money a little bit each. For investors who take risks, there will be their own investment options.

Regarding challenges, according to Ph.D.  Luc, both investors and people are gradually changing their lifestyle, consumption, and taste risks after the pandemic, they become more cautious. In the current plague, cash is considered a king, so they will be more hesitant to get money down.

In addition, the legal framework for real estate is still extremely slow, such as the Condotel segment, we have not had a legal framework for 4 years. In addition, challenges also come from other investment channels. At the moment, there are many other attractive investment channels than real estate, of which the investment channel in gold is noteworthy. Since the beginning of the year, world gold has increased by 27%, while in Vietnam, the price of precious metal has increased by 29%.

However, the expert said that still seeing opportunities in three areas related to real estate, which is the opportunity to develop industrial real estate thanks to the shift of investment from abroad into Vietnam; followed by logistics, in a new report, Savills rated Vietnam as one of the three most attractive markets in Asia for logistics; and finally, the demand for more affordable housing is still very high.

"I think investors should diversify and take risks a bit. Many investors like to surf and use quite large leverage, even borrow black credit, when the market goes down, certainly will bankruptcy, capital loss. There are many attractive investment channels. Real estate is always a medium and long-term investment channel, "Mr. Luc emphasized.

Sharing the same view, Mr. Nguyen Van Dinh, Deputy General Secretary of Vietnam Real Estate Association said that investors should not use much financial leverage, especially when the market fluctuates so abnormally as currently.

For real estate, Mr. Dinh said that real estate always increases in price, the level of increase according to research data for many years, ranging from 5-7% / year, obviously, there is something more than saving money. In addition, they can exploit that property for rent, so there is always an opportunity to earn revenue. Of course, real estate also has risks, high profits will be accompanied by high risks.

At present, the market still has many good products in prime locations

"At present, the market still has many good products in prime locations, prime location houses are always likely to increase prices, locations in good areas. In addition, land plots in many localities have The economic growth rate is strong, the price is at a low level, not an urbanized price, it will become the urbanization price when the locality completes the infrastructure that there are some problems now ". This is the segment with the highest potential for profitability because Vietnam's tourism real estate prices are still low compared to the development potential, Mr. Dinh shared.

Sharing on the current context, where should investors invest, Ms. Nguyen Thi Thanh Huong, General Director of Dai Phuc Land analyzed, based on customers' expectations in bringing about the profits they invest. come on. According to Huong, real estate is still not only a profit channel but also a property accumulation channel that many customers are interested in today.

According to experts, in the current context, in which segments to invest, buyers must determine their needs: Medium-term, short-term, long-term as well as the need to stay or stay or to do business. When the market is difficult, the opportunity for buyers to enjoy good policies from the seller.

>> 
M&A: Vietnamese businesses being acquired amid Covid-19 crisis

Source: Cafef

Categories:
Real Estate in Vetnam

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