The real estate market has many favorable conditions for development and expansion across the country. Many people change their lives by doing real estate business. So do you really understand what business is and how to do it effectively? LSX Lawfirm will give you an article about: “Real estate business in Vietnam”, as follows:
Legal grounds
Real estate business law 2014
Law on land 2013
Real estate business concept
Real estate business is investing your capital in buying houses, building houses, receiving transfers for sale. In which, transfer can be understood as sub-lease, lease or lease-purchase of real estate, real estate brokerage, real estate consulting, trading floor services or real estate management to make a profit.
When conducting real estate and real estate business, it must ensure the following principles:
It is necessary to ensure equality before the law, the parties agree on their own, but must respect the rights and interests of both parties in the contract and do not break the law.
A real estate that wants to be put into business must meet all the conditions prescribed by the Law on Real Estate Business (2014).
When carrying out real estate business activities, they must be honest, transparent and public.
Organizations and individuals have the right to do real estate business in areas outside the scope of national defense and security protection according to master plans and plans on land use approved by competent agencies.
Concepts related to real estate business
What is real estate business?
It is a small part of the real estate market. In general, the real estate market is a market for investment, sale, and rental such as apartments, offices, commercial premises, etc. This is also a type of real estate in the civil sector.
What is real estate?
It can be said that real estate is another name for real estate, it includes types of land and properties attached to land. What can be removed and moved is not real estate. Currently, there are 15 different types of real estate that real estate traders need to understand.
What is a real estate broker?
They act as intermediaries for buyers and sellers of real estate. Organizations and individuals, when doing business in this type of service, need to establish a legitimate business model and meet other requirements as prescribed.
A few things to know when doing real estate business
For real estate business, as an investor, you need to understand the law, operating methods and especially a few notes as follows:
Real estate – a game of cash flow and capital gains
Cash flow and capital gains are for rent and resale. In this business market, there are many speculators who focus on capital gain by buying land and waiting for the price to increase to sell. However, with this method, you will face many different risks.
Cash flow – the game has no end
Once real estate is frozen, interest and capital will be the most difficult goods to consume. On the contrary, once the market heats up, real estate is an expensive commodity that not everyone can buy. In markets with great rental demand such as Hanoi, Ho Chi Minh City, and Da Nang, this demand is continuous and the cash flow game will not end.
Take advantage of good economic leverage
In case you buy real estate and go to the bank to borrow money to make the transaction, the bank will ask the value of the land you are investing in. Next, the bank will ask if you want to increase the loan limit, in case you have fully declared and can repay the loan. At this time, you only need to spend 30% of the initial planned amount and 70% of the bank loan.
How to do the most effective real estate business in Vietnam?
Real estate business is not a simple matter, especially this market has many fluctuations, so you will face many difficulties. So what do you need to do to make your business most effective?
Build yourself an effective business plan
Before you start building a career, you need to have a specific plan and strategy. When you have a plan, you will know where you should start and what you need to do to achieve your goals, especially now that the risks have also been measured in advance. Having a good plan will help you to be confident in your business and achieve good results.
Research the real estate market seriously
This is a very profitable business, especially if it loses, it will be a large sum of money. That’s why you can’t do it through speakers. It is necessary to seriously research and understand the real estate market in the most in-depth way, identify market segments, competitors and potential customers. Doing market research early will save you time, effort and money to invest in a viable project.
Build your own brand
Building a brand helps customers identify your business and increase its credibility, especially it also helps you reach your target customers the fastest. To have a famous brand, you must show a professional, honest and transparent working attitude. It is necessary to build relationships with loyal customers, giving them more value so that they feel beneficial. In particular, you also have to build a specific brand promotion plan to make the company brand more prominent.
Financial statements required
Clear, specific, accurate financial statements will help you know which expenses need to be used, which costs are lacking or are in excess. For real estate business people, they must be flexible in terms of investment capital based on financial options such as: Borrowing from relatives, borrowing from banks, borrowing from partners, etc. What is JobsGO learning about real estate business? If you want to learn more about the regulations on real estate, you can refer to the Law on Land Business or the Circular guiding the Law on Real Estate Business 2014.
Related questions
Confident, dynamic
Love high-end real estate products
Good communication and problem-solving skills…
No degree required, just passion, love of real estate and a desire to break through in income
Have laptop and means of transportation
Ability to work independently and in a team
Buying and selling houses attached to residential land use books;
Buying and selling houses without the right to use residential land,
Transfer of land use rights;
Sub-lease the land use right;
Housing for rent;
House rental transactions;
Transaction of house ownership conversion.
You can refer to the article related to Procedures to establish a real estate brokerage company in Vietnam; or Prohibited acts in real estate business in Vietnam or General regulations on real estate business activities in Vietnam; Conditions for establishing a real estate brokerage company in Vietnam.
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