(Construction) – Real estate investment is understood as the activity involved in buying, owning, managing, renting or selling real estate for profit. The following experiences can help you make the right decision when investing in real estate.

Real estate investment needs to be carefully calculated to limit certain risks. Photo: Nguyen Van The

Purpose of investing in real estate

Investing in real estate, you should first define your purpose. For example, investing in real estate to own a property can generate income by renting or reselling it at a higher price; or invest in buying real estate to diversify investment portfolios, reduce risks and have other sources of income.

Should you invest in "surfing" real estate?

Surfing investment is a term used by the business world. Usually, this type of business only has a term of a few months to less than a year with quick profits, even high profits.

However, surfing investment requires investors to be sensitive to all fluctuations of the real estate market, have highly specialized knowledge to choose the right time to drop money.

Invest in real estate with cash flow or capital gains

Capital gains investment is a form of investment based on the difference between the selling price and the original price to create a profit. The type of capital gain investment will bring about a large profit if investors have the ability to make sharp and accurate judgments. However, this form of investment also comes with high risks if business people misjudge.

Cash flow investing is a form of revenue generation that is fixed on a monthly, quarterly or annual basis. This form of investment does not require the investor to have experience and expertise, but can buy land to build a house for rent or rent a house and then lease it back.

Types of real estate investment

Apartment

This is the type of real estate with the most flexible payment method with many attractive home buying policies, creating favorable conditions for buyers to easily own an apartment even if they do not have enough finance.

Land investment

Land investment is becoming more and more popular because of its high returns, although this type of investment carries many risks. Those who have experience in real estate investment in land often choose suburban areas and provinces to invest in this type of investment.

Invest in rental rooms

Investment in apartments and rooms for rent is assessed as having great potential for increasing real estate value and high certainty, not affected by real estate market fluctuations.