How do you know if a real estate project is luxury or not? Looking at the price, size, reputation of the investor or based on the location of the project?
Investors often choose to buy real estate at low prices and sell when it increase, but the problem of increasing price depends on such different factors. Not products where there is growth potential and that are during a bull run are highly liquid.
Luxury real estate always has high liquidity
High or low liquidity depends on the trend of buying and selling homes of customers in a certain area. In addition, the tendency of planning and construction in the future is also a shred of evidence showing the liquidity of a type of real estate.
For the housing category, buyers mainly choose houses for residence or invest in houses in urban or residential projects. Besides the convenience of geographic location, interior design style is the core factor. Mandatory design elements must include:
Although the returns on housing investment may be more attractive if dealing with land plots, the risks are equally risky. This requires investors to be knowledgeable about interior and exterior design, to ensure the type of real estate meets the actual requirements within the next 3 to 5 years.
The convenient location when traveling is the next outstanding factor for a potential luxury real estate project. It is no coincidence that there is the proverb said “the best near the town, the second-best near the river and the third-best near the road”.
The town here is not only close to markets but also large urban centers and city centers. Most of the houses near busy residential areas tend to increase in price, scarcity and different types of luxury real estate are also sprouting around. Near the river means bringing feng shui implications for homeowners. Near road represents the traffic and road conditions.
ZEITGEIST Nha Be urban area meets the criteria “the best near the town, the second-best near the river and the third-best near the road”
For investors in the form of flipping, they also prioritize areas with many new real estate projects, with an important position and with great potential for development in the future. This option is very profitable for them but also poses many risks if they do not know the actual situation of the project, the current situation of the local real estate market and the development plan of the country.
Based on the criteria of urbanization rate and land price, they are proportional to each other. This means that in cities or regions with a high rate of urbanization, land prices are always rising rapidly. Real estate properties with a minimum price per square meter of land more than twice the construction price of a square meter are worth investing in.
For areas where the land price is only equal, 1.5 times or slightly higher than the construction price, the real estate value is not high. Because most of those areas have a very slow rate of urbanization.
However, we also have some exceptions. For some sites with emerging land, the value of the land will grow if it is planned due to a modern standard such as building an airport or station, the value of that real estate project is worth the investment.
Most homebuyers will hesitate to buy houses in places where roads are not clear and the surrounding infrastructure does not meet the quality of life. It is inevitable that the higher the demand for enjoyment, the greater the requirements for both infrastructure and transportation systems.
Luxury real estate projects have fine financial resources, sustainable capital flows are often located in areas with accomplished infrastructure. Or at least that project must be connected to the key economic region. Because choosing to invest in such categories will bring high returns for both investors and buyers in the long term.
Luxury real estate is often set in locations with convenient traffic
The progress of construction and completion of legal procedures directly affects the liquidity time and profitability of investors. Projects that are soaked in the capital will lose profitability and opportunities to invest in better buildings. Because the cash flow cannot be flexibly “flowing” as expected. So homebuyers need to:
>> Read more:
Thank you for your interest in zeit River County 1!
VN
EN