Surf investors sniffed goods, took profits first, triggered a land fever but sometimes "drowned" because of the waves they created.
Doan Quoc Duyet, Director of Tin Thanh Company, shared a survey about how real estate investors enter the real estate market and pointed out a group of investors to kick-start the land fever in 2016-2018 cycle.
Normally, after the information is made to build bridges, open roads or new traffic infrastructure such as highways, airports, big projects..., the market starts to receive the interaction of big investors. These are opportunistic hunters who always listen to hot information and take money to run ahead and have more opportunities to make investment and speculative decisions than the rest.
The expert pointed out that there are four types of investors occupying the real estate market from the early stage, opening, leading the market circuit, promoting the heating of transactions until the fever peaks and gradually cooling down
These are the skilled hunters who sniff (listen for information and take the opportunity quickly). Heard where there is going to be beautiful infrastructure, even just a draft or news of the corridor, surfing investors are ready to fly to the "hot spot", see immediate buying, no hesitation and no waiting. But they also sell immediately in order to take profits. They are more reckless than anyone, can't even afford to borrow to fight. Surf investors are the source of the housing craze. The style of gathering and discharging "fire" is an easy word to imagine for this group of investors.
Ho Chi Minh City real estate market. Photo: Huu Khoa
However, because winning too easily is mainly due to the risk and only seeing width, many surfing investors lack the depth of market knowledge. They only have the opportunity to take chances, get lucky in some cases, have no legal knowledge. So, just making a wrong decision will take your investment away a few miles, even at a loss.
In terms of the number of surfing investors, they dominate the market and they are also the object that has stirred the real estate market for the longest time in the land fever cycle. Those who surf the final waves when the market has passed the peak of fever, often face a very high risk. However, the problem is that no surfing investor believes that the wave they are surfing is the last wave. Therefore, surfing investors are also known as the wave creators for the land craze.
Large capital investors
These are the "players" strong about violent rice money has a calm investment sense. They have the advantage of large capital flows, preferring to own land, in many cases, have a huge collection of real estate in different places. Large capital investors often buy more than sell, targeting high profit margins. Not being sold as expected, they save, they are not confused because they have to hold for a long time, nor worry about the slow profit rotation.
This investor usually has a stable cash flow from other income or from various types of real estate. Because they do not depend on any particular investment, they are also known as a free investor. They have enough capital to split the eggs into multiple baskets and have enough potential to participate in long-distance races. This is a group of investors with characteristics contrary to surfing investors.
This is the most cautious group in the market. They are afraid of risks, like safety, firm and have the characteristics of being afraid of losing capital. They prefer new and agile investment ideas with new information, good knowledge, an analysis of the evolution of the economy from micro to macro but not acting fast.
The group of observing investors has a good understanding of real estate in both width and depth. They are eager to survey and check the status of real estate but are often not easy to buy because they tend to be too strong defenses. Therefore, the amount of their successful transactions accounted for a very low rate in the market. This group of investors only invest in real estate when they are sure of the lowest risk ratio. However, what is certain to eat only enough to eat, it is difficult to achieve a good profit margin.
This is a real profession because they eat - sleep - breathe along with real estate. They have the characteristics of surviving every hot cycle of the real estate market and often choose their own segments and investment preferences. They buy when the market is at the bottom and sell when they reach the top.
The failure rate of professional investors is very low, but the profit margin is ideal because they often operate in teams, groups, funds, do not go alone and do not make rash decisions. They appreciate the opportunity, are equipped with investment psychology and adequate knowledge, have financial preparation very early, have a team leader in advance.
Professional investors, when acting, are not led by "instant profit stories" to the point of making emotional decisions or impatient judgments. The view of this group of investors is that buying in the right way, the market will operate itself in the right direction and the profit will automatically come to itself.
According to Mr. Duyet's assessment, among the 4 groups of investors that create the real estate market, surfing investors accept high risks to get rewarded with huge profits in the short term. However, these wave creators often "drowned" because of the waves they created. In the group of "judging" investors who are highly qualified, but afraid to take action, they observe the market so there is a great degree of inertia in making investment decisions.
Meanwhile, terrible capital investors often buy money with emotion. For example, they buy the house just because it looks good, so cute, bought the land in a snap because of the beautiful facade or liked the garden on the plot... This is not a walk for the majority.
Finally, according to Mr. Duyet, only professional investors are really breathing with the breath of the real estate market and finding a stable balance and profit.
According to Vnexpress