(1) Geographical location
- Location is always the most important factor when evaluating any real estate, especially land. A land plot with a favorable location will likely increase in price over time, while areas far from residents or underdeveloped infrastructure often have potential liquidity risks.
- When considering location, investors need to pay attention to:
+ Near the center or development area: Land near big cities, industrial parks, and commercial centers often has a strong price increase range.
+ convenient traffic connection: Areas near highways, national highways, airports or main traffic routes will easily attract residents and businesses.
+ Synchronous infrastructure: Electricity, water, internet, schools, healthcare, markets... are factors contributing to increasing land value in the future.
(2) Clear and transparent legality
legality is a prerequisite to help investors avoid the risk of disputes or falling into "suspended" projects. When buying land, you need to check carefully:
- Red book: Land with a separate Land Use Rights Certificate helps the transaction, transfer, and mortgage process to be guaranteed.
- Land type: Clearly distinguish residential land from agricultural land, forest land or land in public works planning.
- Planning status: Verify whether the land is under clearance, has planning problems or is part of an unapproved project.
- Project legality: For project land, it is necessary to require complete documents such as 1/500 planning, land allocation decision, construction permit.
(3) Development potential of the area
Each region has different levels of growth. To assess profitability, investors need to pay attention to local development policies: Areas with priority to attract investment, develop industry or new urban areas often increase prices rapidly.
Current and future infrastructure: The appearance of major roads, bridges, airports, and seaports can directly affect land prices.
Population density and real needs: Land near residential areas, schools, and industrial parks has more stable liquidity.
(4) Reasonable price and suitable for financial capacity
Choosing the right price is very important when investing long-term. Investors should:
- Comparison with neighboring areas: Prices too high compared to the general level will limit profitability.
- Calculating repayment capacity: In case of bank loans, it is necessary to consider a reasonable loan ratio to avoid debt repayment pressure.
- Expected arising costs: Including taxes, notary fees, site clearance and other related fees.
(5) Avoid investing according to crowd psychology
One of the biggest risks is following rumors or market trends without verifying information.
Investors need to learn from many sources such as local government, press, experts, and reputable brokers; Be careful with land fever rumors because many areas are "inflated" and can decrease sharply when the market cools down; With long-term investment, priority is given to areas with a stable development foundation.
(6) Selecting a reputable investor (for project land)
If buying project land, a reputable investor is an important factor to avoid legal risks. Accordingly, buyers need to pay attention to the project development history, compare the progress and legality of previous projects.
Check the contract, read carefully the terms on payment, handover and responsibilities of the parties. Consulting buyers in advance, including residents or investors who have participated in the project, will give a more realistic assessment.
Carefully considering the criteria of location, legality, development potential, price, liquidity and investor reputation will help investors optimize profits and ensure safety when participating in the real estate market.
