In the context of the epidemic, the demand for investing in real estate and land investment has skyrocketed. Investing in townhouses, shophouses, apartments, especially land, etc. has become the top priority for many individuals. Besides residential real estate, tourism real estate is also equally "bustling".
Covid-19 has significantly affected tourism activities, but surveys show that products in the resort segment still create a wave of investment, although quiet but quite strong. In addition to investing in homestays, investing in hotels, ... investing in resort villas is considered a traditional channel and has a solid position in the market.
Notes when investing in resort villas
Do not use financial leverage too large compared to your own capital.
According to our advice, customers should only invest in coastal resort villas when they have at least 5 billion in capital. Although investors often launch many extremely attractive loan policies up to 70%-80%/villa value, it is best to only borrow a maximum of 50%.
Because normally, the liquidity of this expensive villa line is not as high and fast as cheap products such as land, apartments, etc., so the risk for buyers is very high if they cannot turn around the cash flow in time. Moreover, we should also consider the case of high bank interest rates or unsatisfactory exploitation profits.
Product liquidity
In addition to legal issues, the liquidity of resort real estate products is still a big question. For example, in the Condotel market, some apartments are priced up to 80-90 million/m2.
This price is not enough to attract investors who buy and resell to make a profit. This group of investors gradually withdrew from the resort real estate segment, causing the market to cool down. Therefore, there are only long-term investors who care about the real value of resort real estate.
About the investor
In addition to defining what a beach villa is, investors must also have a clear understanding of the project information of this type of real estate. It is necessary to grasp information about which projects are reputable and which investors are reputable.
Highly reliable in the real estate market. Avoid investing in “ghost projects”. This not only makes you wait for the project, the capital “lies dead”, but also risks losing the deposit.
Planning location
The location for construction and development of resort real estate projects often has a complete transportation system to facilitate tourists' travel, thereby achieving optimal business efficiency.
In Vietnam, most resort projects are planned in coastal areas, central locations. In addition, in the near future, resort real estate will gradually expand to mountainous and hilly locations because the resort trends of tourists are changing.
Nowadays, tourists tend to go to places with green natural spaces to enjoy the authentic taste of life, without the hustle and bustle. In fact, real estate projects in general and resort real estate in particular with beautiful locations and convenient transportation attract a large number of tourists to visit and relax.
Quality and convenience
The purpose of resort tourism is to relax, rest and regenerate energy after stressful working days. Therefore, the space at the resort must be truly comfortable and pleasant, bringing comfort and convenience during the living process here.
To do this, investors need to focus on the ecological landscape system, utilities and accompanying services. Currently, resort tourism projects integrate many high-class facilities such as golf courses, shophouses, swimming pools, entertainment areas... to suit the needs of many customers.
Special features of investing in beach villas are different from land and apartments.
Coastal resort villas are a luxury product line, few people can own them, so the liquidity is certainly not as high as land, apartments, etc. In addition, the value of this type of real estate is also very limited in quantity, so once the villa area has been put into stable operation and well exploited, it will certainly help the selling price and rental price increase very high. According to our research, coastal villas often grow well after 4-6 years.
Be careful with surprisingly cheap projects in the same area.
Coastal resort villas are superior to other product segments thanks to their ideal location and many factors such as utilities, operations, brands, etc., so products with very low prices often have many potential risks. Many projects cut costs to sell at low prices to customers and then let customers manage and use them themselves without supporting liquidity or operating.
You should invest when the investor just opens for sale and choose a reputable agent.
With our experience, the first sales will have the lowest price, and gradually increase through the following sales. Customers should learn and buy early to get a good price and many product options. However, it is also necessary to choose a reputable investor to ensure the project is implemented as initially introduced.
Hopefully the information in the above article has helped investors update more information about investing in resort villas.
