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Classification of real estate investment and advantages and disadvantages of these types of investment (#2)

Classification of real estate investment and advantages and disadvantages of these types of investment (#2)

Real estate investment is divided into different types, each type of investment has different advantages and disadvantages. Let's review these types of investment with AHS.

Shophouse

A new type of real estate investment, Shophouse, also known as commercial townhouses, is often used for both business and residence. This type also brings in stable profits but is also quite risky.

Advantage

This is a type of investment with great commercial value. – High product liquidity. – High rental income. The exploitation rate of shophouses according to statistics is up to about 8 – 12%/year. – The supply is still scarce, accounting for only 3 – 5%.

Disadvantages

The price is much higher than normal apartments. The ownership period of Shophouse is only about 50 years.

Officetel Apartment

As a new type of investment, extremely attractive to investors because of the level of profit it brings. It is predicted that the Officetel apartment investment type will lead the real estate investment trend in the coming years due to the increasing demand for multi-purpose offices that can be used as both a residence and an office.

Advantage

The area is usually small, only from 25 - 50m2, so the selling price is low or not too high. The rental profit is attractive, higher than renting normal apartments. The address can be used for business registration. The company nameplate is allowed to be used in front of the apartment and at the reception.

Disadvantages

Small area is not suitable for individuals who want to stay long term. Ownership is only 50 years. Operating costs of Officetel apartments are higher than other types of apartments.

Investing in rental rooms

The demand for renting rooms is currently quite high, especially in big cities due to the high job market. Besides the stability and potential for high profits, investing in renting rooms also has many potential risks.

Advantage

The demand is always greatest in big cities like Hanoi and Ho Chi Minh City. Stable monthly revenue, not subject to fluctuations in the real estate market. In addition to the monthly income from renting out rooms, there is also the potential for increased real estate value.

Disadvantages

Taxes must be paid accounting for 10% of revenue, including 5% of personal income tax and 5% of revenue. Complicated security, difficult to control tenants, can cause social evils, dangers affecting the number of tenants. Low profitability. It can take a long time to collect money, or rent is not paid, causing loss of revenue. High costs for maintaining rental rooms. The eighth type of real estate investment: Factory investment In the trend of expanding and developing the market, businesses all have the need to find factories or warehouses to rent for production activities. In particular, small and medium enterprises and foreign enterprises often look for pre-built factories to save initial costs and limit risks. Investing in factories for sale or rent is becoming an attractive investment type for investors to participate in.

Factory investment

In the trend of expanding and developing the market, businesses all have the need to find factories and warehouses to rent for production activities. In particular, small and medium-sized enterprises and foreign enterprises often look for ready-built factories and warehouses to save initial costs and limit risks. Investing in factories for sale or rent is becoming an attractive form of investment in the current situation.

Advantage

Industrial land rental prices have been increasing recently. Factory rental profits are higher than other types.

Disadvantages

Potential but requires long-term capital. The time to recover capital is very slow, at least 10 years to recover capital. Difficult to find large land funds. Difficult procedures, legal support for investors. Above is the answer to the question of how many types of real estate investment are there, along with the advantages and disadvantages of each type of real estate investment. Investors should consider and learn carefully to make the most correct investment decisions.

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