Are you planning to invest in apartments in Ho Chi Minh City? Please refer to the note below before making an investment decision.
Stable income, investment capital spent less than townhouses and villas, high liquidity … are not attractive factors than investors choose apartments for rent in Ho Chi Minh City. This type of business does not generate massive profits, but in return is the stability, ensure the return of capital and bring about a monthly income source. The income from this rental is equivalent, even marginally than the bank savings deposit. This is also suitable for investors who want to accumulate and want to profit from real estate.
Choose the projects that your tenants prefer
Demand for rental housing is increasing in large cities, followed by the appearance of many real estate products for tenants to choose from, including the home, home city, mini apartment, cheap apartment … Because there are many types of housing such as this should be very competitive advice for those who want to invest in a rental apartment is the option that the tenants prefer.
Normally, the tenants would like to rent apartments in the center of the city, nice location, diversified and exciting services, convenient and convenient outside, the traffic is very convenient. Most important is the right price. These are the advantages to attract and source customers.
In large urban areas like HCMC, you can invest in apartments in the central districts such as District 1, District 2, District 3, District 4, District 7, Binh Thanh District. Phu Nhuan District … These are the large concentration of population, businessmen, foreigners should be able to invest high-grade apartments for rent. You can also choose to invest in apartments close to the airport, near the industrial parks and many students. These are places where there is a very high demand for accommodation.
In addition, you can choose apartment projects that are committed by the owner, so that homeowners will not have to look for their own and security policies, manage and maintain the apartment to be implemented by the investor.
Choose the perfect apartment
When investing in apartments for rent, you should look for the perfect apartment. This is the safest and most stable investment option. Finished apartments are products that can be exploited for rent immediately, ensuring profit at the purchase.
Not only that, with the perfect apartment, the landlord does not have to spend too much time to take care of or manage it because the owner or owner has done this. The liquidity of this type of apartment is always better than the product line of apartments under construction, land, houses, villas, while high consumption, moderate prices.
Because of these advantages, apartments are classified as easy to buy, easy to sell and rent.
Another advantage of flats is almost no risk, as this is the current property, the cash flow through continuous through this property. If the real estate market is difficult, the completed apartment always keep better than the unfinished projects, while the market is recovering and entering a good stage of development, the value added of the completed property may be higher.
Finished apartments are classified into easy to buy, easy to sell and rent.
Other considerations when investing in apartment for rent in Ho Chi Minh City
You should also consider whether the apartment price is reasonable in the current market or not, is reasonable compared to the same product segment or not. The lease price must also be reasonable with the selling price of the real estate on the total value of the apartment.
Also, choose large-scale or high-density residential projects: Projects with multiple units will make it easier to rent, attracting customers by Services formed in the building. The higher the density of dwellings, the better the ability to rent, with associated houses or villas should be located in the area for many homes, crowded.
Finally, choose projects that have good living environment, closed services and high quality: Usually the projects have good living environment to ensure the liquidity as well as the rental price is always better because it attracts Many high-end customers are interested.
If the project is under construction, select the projects of reputable investors, big brands and especially the investor widely communicated widely known.
The formula for calculating the profit margin of the apartment
If you are planning to invest in a rental property and are wondering how to calculate the profit margin, here is a simple formula that you can apply:
Rental price for a month multiplied by 12 (months), then divided by the total value of the apartment will be the percentage rate of rental profit:
For example: A high-grade apartment in HCM City costs $ 3,600 / sq m, average rent is about $ 27 / sq m / month (self-managed – CBRE). Total rent received in the year will be $324 / sqm ($27/ sqm / month x 12 months). So the profit margin for a year will be: (27×12) /3,600 = 9%.
This is how the profit margin is calculated for one year. This formula can be applied to all forms of real estate such as apartment, house, land, house … But in addition to this number you also have to pay management costs, taxes, maintenance fees … It also has to estimate the number of months of vacancy (no one hired) to estimate the specific profit of the year.
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