RISKS TO AVOID WHEN INVESTING IN A REAL ESTATE PROJECT

Thao Dien Sapphire Villa is a safe investment project for investors

1. Beware of ghost projects

1.1. What is Ghost Project?

Ghost projects are unreal projects that are not actually planned and built. Scammers use fake documents to sell real estate products. Ghost projects often belong to land products, so buyers will easily trust the planning, construction, ... that the seller creates.

Ghost projects will have unclear information and investors need to recognize to avoid.

Typical types of ghost projects:

• The land has not been converted to use purposes. Planned land under the project must be in the planning, approved by the competent authority. Many buyers do not pay attention to this, which leads to the wrong purchase.
• The land does not have a specific subdivision permit. Land that has not been divided into parcels makes it difficult to issue a red book. For investment, there are also many obstacles due to ineligibility for resale. Knowledgeable land buyers will not easily transact when the legal conditions are not clear.
• Land plots need to be liquidated cheaply in the following cases: the land is located in a remote area, the legality is unclear or the land is located in a disputed area.

1.2. Prevention

In order not to encounter scams when looking for investment, buyers should know how to recognize and watch out for 'ghost projects' as follows:

• Do not rush to invest because of the cheap price.
• Read carefully the information of the investor: business license, certificate of land use right, construction permit, certificate of investor registration, ...
• Project information must be provided completely and reasonably.
• You should not only trust the broker, but also ask them to provide full legal and information related to the project. Don't make a quick deposit when you don't know enough and accurate project information.

1.3. Investing in ghost projects can get capital back?

In case the project is licensed for construction but lacks the conditions to open for sale, the buyer has the ability to get the investment back. For the seller intentionally defrauding, this case will be considered under criminal judgment and prosecuted. If the case is resolved and the fraudster is caught, the funds will be recovered. Investors need to learn knowledge about real estate industry and information about intended investment products carefully before investing. Do not listen to the exaggerated advertising of scammers. Real estate is a big investment channel that needs large sums of money and profits if investors have good vision and experience in this field.

For those who are inexperienced but want to invest in real estate, they should find acquaintances to inquire about experience, refer to situations in the field through news, news channels to ensure the amount of knowledge and sensitivity to invest in real estate. Identify problems when investing.

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Currently, projects with many risks are present in big cities, making it easy for investors to fall into the net.

2. Find a reputable distributor/broker

To invest in safe real estate products, buyers should look for a reputable real estate brokerage company. The following factors will help buyers identify a reputable real estate company to invest with peace of mind.

• The professionalism of the real estate company is clearly shown through the working process. These companies will take steps to advise in sequence and provide product information that suits the needs of buyers rather than convincing them to sign a contract in a short time.
• Knowledge of the real estate sector of the broker is also essential. They must clearly understand the issues in this area to avoid problems arising during the transaction.
• Find brokers through prior acquaintances.
• Information of the brokerage company can also be searched through reputable real estate forums and websites.

3. Note when signing the deposit contract

When signing a real estate deposit contract, the buyer should note that the information and terms displayed in the contract are not misleading or unreasonable. The party signing the contract to receive the deposit must be the person named in the land use right certificate. In case of authorization, the document must be notarized according to the law. Buyer can deposit in cash, gems or other recognized valuables.

Determine the purpose of the deposit and specify it in the contract. Determining the purpose of the deposit affects the validity of the contract. Because when it is not clear what the purpose of the deposit is, it will easily cause confusion with the advance payment. Deposit is an amount for the seller to perform the obligation to keep and preserve the property for the buyer. The seller is not allowed to use or trade such real estate products without the consent of the buyer.

4. Urban eco-villa leads the trend

For those who live in a big city, one thing will be clear that air pollution is increasing due to the large number of vehicles. It is not easy for residents here to find a fresh and quiet living space. So, for many people, the attraction of developed areas is geographical location near rivers, lakes, sea and trees. These places will meet the demand for green living in big cities - places with rapid urbanization. The elite and investors see the vast potential of these modern eco-style luxury housing products. Therefore, many people see the investment in urban villas today as the investment leading the trend. 

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Ecological villas along rivers, lakes and seas are popular and are creating a new trend.

Large real estate companies are always looking for convenient areas to build high-end housing projects. With uncompetitive natural conditions and distinct amenities, these projects appeal to the elite and are viewed as investment products with great return potential. In Ho Chi Minh City, the villas in District 2, the villas in An Phu Thao Dien, and the District 7 area possess natural features suitable for a desirable life. The villas in District 2 such as Thao Dien villa area have become a famous area with many luxury and great value villas.