Investing in land, my sister is stuck with two plots after 7 years

My sister pooled money with her husband’s younger brother to purchase two plots of land seven years ago. If she manages to sell them now, the returns would be lower than the interest she could have earned from keeping the money in a bank account over the same time. Furthermore, there’s no certainty about when she’ll be able to sell.

For those who buy real estate with borrowed money, the risk of losing their capital is high. This case illustrates how entering the real estate market can sometimes lead to failure.

My wife and I have been in the furniture business since 2000. Before we decided to buy land to build a house and open a store, several furniture shops in the area closed down or rented out their premises. Some owners sold their houses and moved elsewhere. My wife’s brother-in-law faced a similar situation as he inherited a business but could only operate it for a few years before having to close it and rent out the space.

If you think investing in real estate is easy, feel free to give it a try.

Reader Hung U60

The comment was left on another reader’s story where they are criticized and called unwise for investing in a business instead of trading land. These are some comments made by other readers:

Reader Trong:

"The author thinks investing in real estate is easy, but 8 out of 10 people lose money. In my experience, many people who got rich from land trading originally bought the land for their businesses and had no intention of investing in real estate.

In the end, I do not know whether they became wealthy from their initial businesses or from the land and factories they bought. Real estate investment requires very long-term thinking and sometimes you have to wait a decade to see results."

Reader Binh Luan:

"If everyone can get rich by buying land, the prices would not be where they are now. Of course, people who invest in land can make huge profits, often several times more than other businesses, but along with that comes the need to maintain a large network of brokers to help purchase and sell properties. They must have extensive connections for smoother operations, large funds, and a strong mentality to remain steadfast as they wait for prices to rise.

Most importantly, they need a lot of luck to encounter good timing and buyers. In general, this profession is not for everyone, even though the opportunity is very tempting."

Reader huedqcova:

"Real estate is an industry that significantly impacts many other sectors and contributes to economic development. However, it is undeniable that some investors, groups, and speculators within the industry lack ethics and distort the market.

Starting a business in another industry is similar to investing in construction and developing real estate products. Both approaches benefit investors, create jobs, generate demand in related industries, and contribute to the state budget."

What is your viewpoint on this topic?

*This opinion was translated into English with the assistance of AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.