Apartments are becoming more and more popular in urban life. Should you invest in this type of apartment? What will you gain and lose when investing in an apartment?
An apartment building is a house with 2 or more floors, with many apartments, with common walkways and stairs, with private ownership, common ownership and a common infrastructure system for households. , individuals and organizations, including apartment buildings built for residential purposes and apartment buildings built for mixed use purposes for residence and business.
Learn about the concepts of popular apartment types today 7 types of apartments opening for sale in 2023
Regular apartment
Apartments, also known as condominiums, are the most popular type, present in all segments from low-end, mid-range, high-end, or recently the appearance of the super luxury segment. These apartments also have a variety of prices, suitable for the needs and financial capabilities of the majority of customers. A normal apartment will have full functional areas: living room, dining room, kitchen, bathroom and one or more bedrooms, meeting the needs of family members.
Studio apartment
Originating from England with the name Bachelor or Efficiency, designed to serve students or single people. The space inside the apartment has no partitions but still has all the basic functions such as bedroom, living room, kitchen, and bathroom area grouped into a separate corner.
Officetel apartment
Officetel apartments can also serve many functions such as: residence, hotel, office. Depending on the user's purpose, the interior of the officetel apartment can be arranged appropriately.
Officetel apartments inherit all the amenities that the apartment complex has, such as: swimming pool, gym, playground, restaurant, playground, shopping area, etc. The value of each officetel apartment is often lower than the price of a normal apartment. Officetel apartments are often chosen by investors for long-term rental investment.
Shophouse
This special type of apartment is a combination of residential and business architecture, often called shophouse commercial apartments. Shophouse apartments are often located on the ground floor of commercial townhouse projects and are limited in number, larger in area than regular apartments, so they often have high prices.
Penthouse Apartment
Penthouse apartments have long appeared in real estate projects around the world. In Vietnam, the concept of Penthouse apartments only began to appear since 2010 and is often located in high-end apartment projects, large apartments, and urban areas. Penthouse apartment models often have an open, modern, luxurious design. They are often located on the top floor of the building and are connected to each other, not necessarily duplex apartments, except for private space. Penthouse apartments are popular because of their wide, airy views with panoramic views of the city. The view of the Penthouse is often a beautiful scene with a large surrounding balcony, a large porch. Compared to normal apartments, Penthouses are designed with additional swimming pools, gardens, and balconies. In order to meet the high-class living standards of customers. The bedroom, living room, and kitchen categories are also taken care of with luxury furniture. The entire interior of the Penthouse apartment is luxuriously and delicately arranged, imported from Europe for optimal quality. Penthouse apartment models often have sky-high prices thanks to high-class living facilities, beautiful views, high space, and spacious area.
Duplex apartment
A duplex apartment is designed with at least 2 floors or more in the building with stairs right inside the apartment. Duplex apartments can be located between floors, not necessarily on the highest floor like a penthouse. The advantage of a duplex apartment is that the area is maximized, suitable for large families who want to find a private, quiet place to live, with comfortable living space but still have full amenities right below the house. And along with those superior advantages, the selling price of duplex apartments is much higher than that of normal apartments.
Sky Villa Apartment
Sky Villa apartment is at the top of the list of luxury apartments in our country. It can be called a type of resort villa right on the high-end apartment buildings. Sky Villa meets all the standards of a true luxury villa. All utility services are required to be strictly designed and built from the inside out, with full amenities in the house to the landscape area, swimming pool, luxury entertainment area, ... The owner of Sky Villa will be served with a private entrance, private elevator, and even do not need to share some other public utility services.
Potential and risks of investing in apartments
Potential for apartment investment
The outstanding advantage of this type of investment is that it always has a very flexible payment method, buyers can pay in many ways, in many installments. Apartment projects are almost all supported by banks with high loans and preferential interest rates. Not to mention that some investors also connect all procedures with the bank on behalf of the buyer.
Once you buy an apartment, renting it out is very easy. If the apartment is in a large project, the landlord rarely has to find tenants himself, but brokers will come to you to discuss the matter. The demand for apartment tenants is very high.
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.
The law on protecting apartment buyers is getting stricter. According to the revised Housing Law, all businesses selling apartments must fulfill their obligations to cooperate with banks to guarantee the sale of future houses. This also helps protect the rights of home buyers in certain regulated cases. For example: In case the investor cannot hand over the house on time as committed to the customer, the bank will compensate the buyer for damages.
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.
Risks when investing in 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. With such a trend, experts believe that in 2017 the number of apartments will continue to increase, around 25,000-30,000 units. 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.
It is difficult to increase prices suddenly like real estate. Except for the first 10 years of good exploitation, apartment prices can continuously increase within a narrow range, averaging below 5%/year, and then there will be signs of price saturation. However, currently, investors often choose to locate their projects in places with many development factors such as: good infrastructure, convenient traffic, fresh green space, etc. Therefore, in the long term, apartment projects will have a constantly increasing value.
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If you are interested in the real estate sector, please contact AHS immediately for advice and answers to questions, and together to develop a strategy to invest properly to generate high-value profits.