After the land fever, the realtor took out a bank loan to buy five lots, struggled to pay more than 40 million dongs a month, suffered a loss of 30%, no one bought it.

In 2020, Ms. MA (Binh Duong) applies to be a real estate agent. Exactly at this point the market started to fever. In the first month, thanks to her acquaintances, Ms. MA successfully completed three simple transactions to deposit funds. It was also the first time that Ms. MA had a high income, VND 50 million including commissions and bonuses.

In the months that followed, MA “closed” an average of 1-2 transactions per month, albeit only halfway accommodating. After the fever of residential land and land subdivision for sale, the real estate market gradually began to cool down. By the end of 2020 and early 2021, the species of Poles will be “on the throne”. Transactions are also quick. Even at this point, according to Ms. MA, customers only need to take a look at the book, grasp the location of the action coordinates and they can lock up.

The property transaction went smoothly and with the accumulated income from the commission, Ms. MA started working with the investment partner. On average, the land for joint investment with you will bring in 50-200 million VND per transaction in 2020-2021. “The more profitable I am, the more I want to invest in land. Just buy this lot, mortgage it and buy another lot. Aside from sharing it with friends, I’ve bought some other land for dong 400-600 million,” MA said.

By 2022, however, the market will come to a complete standstill. Quick buy and quick sell transactions no longer take place. The total number of lots shared with friends owned by Mrs. MA is up to 5.

After the end of the preferential interest phase, the burden becomes more difficult, Ms. MA’s loan bears interest of up to 15.2% per year. On average, Ms. MA pays more than 40 million VND/month. And every 6 months, the main payment must be collected once. It is worth noting that in 2022, when the market waves “broke”, Ms. MA had to resign from her job due to the company’s restructuring. At the same time, selling real estate has not been easy until now. “I haven’t sold a property in over a year,” the agent said. “No one would pay off the land I bought even if I saved up to a 30% loss.”

“Becoming a broker, completing transactions easily and quickly, determined to become a surfing investor” is the path many people have experienced. Easy gains, however, only come in country fever. When the market collapsed, owning property and borrowing from banks became a stressful problem for investors and brokers. Since the unemployed have no income, market liquidity freezes, preventing brokers from earning commissions. Meanwhile, it is not possible to reduce losses to move goods to recover money, withdraw debt, because the pressure to bear interest and capital is very great.

“No experience, no knowledge, quick profit gives brokers illusions about their own abilities. But when the land fever passed, they realized that if there were no roots, it was very difficult to withstand the market. “If there is no careful calculation of the bank’s main debt, if the market freezes, there are job losses or loss of income, it is not easy to repay the bank’s debt,” said Tran Thai, director of the brokerage department.

This director said, indeed, many brokers are turning to investment through equity partnerships with friends. Then they often buy that property and mortgage it to buy another property. “I know a real estate agent who owns ten properties with just a bank loan. Hundreds of millions of dollars a month. Now reduce the loss by 40% and nobody. Why? Because now people with money have many options. They don’t spend money to buy cheap, bad properties and don’t generate cash flow,” Mr Thai said.

However, Mr Thai said the current timing is the review phase, which will bring the land price back to its true value. Brokers and investors quick in the heat will learn the lesson. If you work hard, you stay in the job. The rest of the market is eliminated.

According to Hainan