Understand “Real estate SURFING investment” to minimize the risk of financial capital stagnation. Our article below will help you solve this problem! According to many economic experts, real estate is one of the few investment channels that generate quick and stable profits in the current context. In which, the “surfing” investment form is chosen by many investors.
Real estate swing trading, also known as short-term real estate investing, is understood as a form of taking advantage of profit opportunities before the fluctuations of the market. Real estate swing traders will earn profits from the price difference of the real estate they trade.
Simply put, investors only need to spend about 15% of real estate value to temporarily reserve a place or even a few hundred million to deposit with the owner. Then, when the market starts to heat up, many people are interested in the product that the speculative investor is holding and are willing to buy it back at an extremely high price difference. Compared to saving money in the bank and investing in short-term real estate, the investment is more effective.
Notes for effective "surfing" investment
Select investor
Choosing an investor is the first and most basic step in researching to buy an apartment in general. The theory is very long, but you just need to pay attention to the following: the investor’s capacity, the projects they have completed and whether they have any “scandals”. If you want to know anything, you can search on the Internet, ask your friends who have experience in the real estate field.
Compare selling prices of properties in the same area
This note is only for investors in apartments built according to progress. Based on the difference in value between the time of construction and the selling price after completion of the project in the same segment within a radius of 1km to predict the level of profitability. Investors need to determine which areas will have "waves" or the potential for real estate price increases. The basis for creating real estate waves is planning information or the formation of projects that are about to be planned.
Quantity and type of products
The larger the number of products in the product line you invest in, the higher the liquidity and growth risks. For example, if the urban areas you plan to invest in are constantly being built with new buildings, your competitors at this time are the investors. Because the selling price is decided by them and will often be lower than expected. Therefore, if your purpose is to "buy and resell", you should choose products that are easy to sell. Normally, easy-to-sell apartments today have an area of 60 to 90m2 and have from 2 to 2+1 bedrooms. In addition, apartments facing East, Southeast or South are also more interested, located from the 6th to the 20th floor. However, you should avoid apartments on the 13th floor because 13 is considered an unlucky number.
Determine general market trends, stocks.
You need to analyze the general market trend. This factor plays a very important role, because most stocks move in the same direction as the market. Therefore, if you go with the market, the probability of correctly assessing the trend of your stocks will increase significantly.
Stable project construction time
The construction time of a project is usually proportional to the time it takes for the investor to occupy capital. In other words, the shorter the construction time, the higher the possibility of market changes. This can lead to many risks such as unattractive projects, low liquidity, etc. Therefore, priority should be given to choosing projects with a construction time of about 1.5 to 3 years, depending on the type of social housing, affordable, high-end or mid-range apartment projects, etc.
Above are the basic knowledge about what is swing trading and experiences in the field of real estate trading. Wish you successful investment soon!
