In recent years, resort villas and resort villa investment have been strongly attracting high-end real estate investors, especially those with large capital. However, not many people know what to pay attention to when investing in resort villas. Let's find out with AHS!
Things to note when investing in resort villas
The project has complete legal procedures.
Resort real estate is in a booming period, but not all projects meet the State's regulations on legal procedures. According to the provisions of Clause 1, Article 55 of the Law on Real Estate Business No. 66/2014/QH13 dated November 25, 2014 and Point b, Clause 2, Article 19 of Decree No. 99/2015/ND-CP dated October 20, 2015 of the Government, investors of commercial housing projects must send a document to the Department of Construction where the housing is located, along with documents proving that the housing is formed in the future and is eligible for sale.
Real estate experts also advise that buyers should not be attracted by beautiful locations and offers of high profitability, but ignore the legal aspects of the project they intend to invest in. Resort real estate is often a valuable asset, so buyers must be more careful to avoid legal risks. When investors do not meet the legal requirements, it will affect the rights of future buyers.
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 to 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.
The capacity of the investor and the management unit are equally important.
The investor is important because it decides whether the project is formed as the perspective or not, whether the cash flow of customers is safe or not. The management and operation unit decides the user experience, brand, and ability to attract customers of the project.
Project has prime location and high-class service
Vietnam has the advantage of a long coastline, so famous localities with many beautiful beaches such as Da Nang, Phu Quoc, Nha Trang, Vung Tau are often chosen to build large-scale resort real estate projects. Parami Resort Ho Tram project is located on the frontage of the coastal road, Phuoc Thuan commune, Xuyen Moc district, Ba Ria Vung Tau province. This is a beautiful road with many high-class resort projects.
Monitor the terms
Understand the terms of the commitment, the costs the buyer must bear, and the name of the independent auditor. Not only for coastal resort villas, but for any real estate product, buyers should pay attention to these factors. The transparency and feasibility of the commitment need to be clarified to avoid risks that may occur later.
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.
If buying for investment, it is necessary to clearly determine the feasible capital recovery time.
Normally, investors will recover their investment capital in 8-13 years. Investing in the resort sector, the profit per quarter/year is not much but the income is long-term, and the added value is also extremely high if the project is well exploited. In addition, customers should also carefully find out how many years the coastal resort villa is owned because it is usually only owned for 50-70 years.
It is rare for projects located close to the sea to be owned for a long time, such as Grand Hillside Residence Phu Quoc. In addition, weather and epidemics are unavoidable factors that will greatly affect the room exploitation rate and the owner's vacation time. Coastal resort villas in the Central region often encounter many natural disasters, so you need to pay attention. To be more certain, before buying, you should refer to the effective room exploitation rates of nearby projects or brands in the same segment for an objective assessment.
Thus, it can be seen that beach villas are a real estate product line that is highly appreciated by experts for its profitability, especially projects located in beautiful and famous places. However, the above are only assessments and analyses for customers to refer to, so customers should consider to make appropriate decisions and choices.
