Investing in “apartment”
Faced with the current situation of increasingly narrowing land funds in big cities, investing in apartments is becoming a real estate investment trend, although it has only developed in the last 10 years but is extremely potential. The apartment real estate market is bustling with many segments from low-end to high-end. The apartment market is diverse from high-end to low-end segments.
Advantages of investing in apartment real estate
Flexible payment method: usually investors will have policies to support customers on payment terms. In addition, this is the only type of real estate that supports installment payments in many installments, or is associated with banks that support loans with attractive interest rates. High demand for housing: the population in Ho Chi Minh City is increasing over the years, along with the average income of people increasing, leading to the need for a place to live with full amenities is inevitable. Investors can buy and invest in the form of rental Good liquidity: Investing in apartments can generate quick profits through the form of "surfing" investment. If renting for secondary apartment investment, the ability to generate profits will be regular and stable every month.
Disadvantages
Many apartment projects are overvalued. The price cycle increases slightly, with few sharp fluctuations. Investors need to spend a lot of time to understand the market.
Second type of real estate investment: Townhouse
In addition to the type of apartment real estate investment, a form of real estate investment that many investors choose today is townhouses. This is not a new type of investment but has not cooled down because the demand is always good. Let's learn more about the advantages and disadvantages of this type with AHS.
Advantages of investing in townhouse real estate
Townhouses can be used for both residential and business purposes or for rent. Thus, it can be seen that the value of investment in townhouse real estate is quite high. High demand, especially in areas with beautiful locations in the city. Stable monthly income is better than other types because the demand for renting townhouses for business is always there. Legality is often guaranteed more clearly and completely than land real estate investment.
Disadvantages
Investing in townhouses often requires high investment capital, because the price of townhouses is often high due to the uniformity compared to the area. The small area of townhouses will make it difficult to separate the book to have a separate name. The profit and liquidity of this type are affected by fluctuations in the real estate market, making it difficult to adjust the price as desired.
Investing in "land"
Land investment is a type that has been around for a long time but is of interest to many investors because of its high profits. As land funds are increasingly limited, land ownership in big cities is increasingly limited, investors, especially those with little capital, often look to the suburbs to invest in land. This type has many advantages, however, it also has many potential risks for investors.
Advantage
One of the most potential and low-capital investment types today. Expected profit is 4-5 times higher than bank interest rates. Profitability and liquidity are better than townhouses, especially in areas with complete infrastructure. The profit of land in 1 year is usually 20% - 30%. The possibility of price drop of this type is quite low due to less negative impact according to the market growth cycle. Urban land funds are increasingly limited, land resources do not increase, creating conditions for land investment to develop strongly. This type of investment is less influenced by virtual value due to advertising. If the land has a red book, the bank will support up to 70%
Disadvantages of land investment
Because it is so hot, brokerage companies often take advantage of it to scam. The legality of some land areas is still unclear, making it easy for investors to face risks when investing. The more beautiful the land location, the higher the liquidity, the more expensive the price, losing a lot of investment capital. On the contrary, if the location is not beautiful, it is often difficult to sell, and capital must be "buried" for a long time. Land only really grows if it is located in an urban development area, with synchronous traffic infrastructure, developed regional economy, and well-planned.
The fourth type of real estate investment: Resort real estate
At present, investing in resort real estate is no longer a strange concept to investors. Especially when the Vietnamese tourism industry is making strong changes, attracting not only domestic tourists but also a large number of international tourists. Therefore, it leads to the development of resort real estate investment to meet the accommodation and resort needs of tourists.
Advantage
Resort real estate can be used for both living and business purposes in the form of self-employment or leasing to a business party. Quite unique compared to other types, it possesses a lot of potential that other types of investment do not have. It has a strong attraction among investors because of its long-term profitability. The committed profit level of this type is from 8 - 14% lasting from 8 - 10 years. According to records, the number of tourists is increasing due to the development of society. At the same time, the number of international flights has been improved, creating a large source of revenue for this type of resort real estate investment.
Disadvantages
Profits depend on the fluctuations of the tourism market. High investment capital depends on the tourist destination because resort real estate, especially those with sea views or on the coast, are often very expensive. Resort real estate often faces many legal difficulties.
