The Real Estate market is gradually warming up and showing positive signs in recent times. Therefore, choosing the Real Estate segment to invest in to both increase profits and avoid risks is something that many customers are concerned about.
In just the last 5 years, apartments have accounted for 24.6% of the total number of newly built houses. This ratio in previous periods only accounted for about 3-10%. The living habits of people in urban areas have also changed significantly, more and more families have chosen apartments as a place to live. The current situation of land funds in urban areas is gradually narrowing, the source of immigrants is increasing, so the boom in apartments is an inevitable trend in the coming years... Inevitably, the apartment real estate market will be extremely quiet. This is the reason why the boom in apartment investment attracts real estate businesses.
However, is the path of investing in apartments really just a bed of roses? What will you gain and lose when investing in apartments? Let's find out with AHS in the article below.
Advantages and disadvantages of investing in apartments
Advantages of investing in apartments
The outstanding advantage of apartment products is the price. If compared with common types of real estate such as townhouses or villas, the price of apartments will be much lower. That is why people choose to buy apartments that suit their income. Furthermore, when comparing prices, if an apartment has an area of about 70m2, the price fluctuates around 2 billion VND, but with the same area, to buy a complete ground-level house, the buyer also needs to spend an additional 4-5 billion VND, in some projects it is up to 6-7 billion VND. Because the price of apartments is often at a "reasonable" level, investors are also very interested in this type of real estate.
Good liquidity. For rent, the profitability will be steady and stable every month.
Living in high-rise apartment projects, residents will enjoy the best facilities and infrastructure such as community living areas, shopping areas, commercial centers, entertainment areas for children, schools, and hospitals are also arranged most conveniently. In addition, modern high-end apartments will always be fully equipped with fire prevention and fighting plans, escape routes as well as 24/7 security and safety protection. These are things that ground-level houses cannot have.
Furthermore, if you decide to invest in apartments, buyers will not only be supported with loan procedures but also be able to buy a house with many flexible forms such as installment payments, long-term loans of 10 years, 20 years or even 50 years depending on the loan amount. Buyers can choose flexible payment methods with very preferential interest rates.
Are there any risks when investing in apartments?
The increasing number of apartment disputes has made some home buyers hesitate. There are not many investors who are truly reputable and do business honestly, while this is the period when every house and every person is building apartments.
The Real Estate Market is fiercely competitive. The supply of apartments in recent years has increased to tens of thousands of products each year. The rapid increase in supply on the market will create many disadvantages, possibly slowing down liquidity or reducing the value of apartments in the case of renting.
In addition, there are also investors who promise too much in order to attract investment capital from customers (in the form of capital contribution in installments), but in the end, due to weak capacity, they cannot continue to implement and have to restructure or transfer to other investors, forcing customers to accept the risks they bring.
Many investors take shortcuts and cheat right from the project planning stage to the time of selling to customers. Therefore, the legality of projects is always a headache that causes the "reputation" of the apartment building to be reduced.
For those who invest in apartments for rent, they expect a quick return on investment. But to get a quick return on investment requires a fairly high rental price. This invisibly reduces the pool of customers for re-renting, limiting them to those with a good income who can afford that rental price. Therefore, finding customers for rent will be more difficult, and even the landlord has to accept periods of time when they cannot collect money because there are no tenants.
AHS Real Estate Joint Stock Company is proud to be a distributor of quality real estate products, with a team of professional sales experts, dedicated to consulting AHS to bring you valuable real estate products. best treatment. You can feel completely secure when trading real estate products through AHS Real Estate Joint Stock Company.
If you are interested, want to learn and want to buy an apartment, please contact AHS immediately for advice and answers to questions, and to find a suitable project.
