Investing in a shophouse (commercial apartment) needs a large capital and not everyone should invest in this type of apartment. See if you are suitable to buy a shophouse.
Customers want a place to live and business
Shophouse is known as a “multi-purpose” investment channel, where you can both be comfortable and can set up in the house itself. Although shophouse apartments are priced higher than other types of real estate, they are still in a “shortage” situation, especially shophouses in residential projects, residential areas and crowded visitors.
Imagine your shophouse is located in a large-scale condominium project such as Vinhomes Central Park (Binh Thanh District), where the number of residents reaches tens of thousands and the number of tourists to visit each day. This is really a pretty big number … creating the premise for good business in the shophouse.
Customers want to buy and lease back
After buying a shophouse, if you do not intend to self-sell your product, it is entirely possible for someone else to rent the shophouse. With the advantage of the shophouse is close to crowded residential and high middle income so many people want to rent a shophouse is quite large. In addition, if your shophouse is located in prime locations on many fronts, riverside walkways, the potential for future price increases is feasible.
If you do not intend to do business or rent, but prefer low-rise apartments, then shophouse is the choice you should consider. Usually shophouse buyers will choose to rent the first floor, and the family will be on the upper floors separately. At present, the shophouses are designed with two doors, one for shops and one for housing.
Customers want a secure investment channel in addition to bank savings
In addition to the above mentioned objects, the shophouse is also suitable for retired people or young entrepreneurs who have large savings of VND5 billion or more, looking for a safe, stable and secure rental investment which higher profit than bank deposits.
Risks when buying a shophouse apartment you should know
Prior to investing in a shophouse apartment, what would investors be interested in the risk of this product line? Here are some of the risks investors may face:
Shophouse price is higher than the price of the apartment: Shophouse is a specific service product line, the price is higher than at least 20% or more than the price of the same apartment building. In particular, there are super-projects to shophouse prices double the price of apartments. At this price, investors will be very anxious about liquidity.
With its two-storey product line, Shophouse, the price is obvious. However, investors need to carefully consider the potential of the project to make the best investment.
Shophouse has only 50 years of use: Most shophouse apartments have a lifetime of house space and a 50 year shop area. This is also a barrier that many investors are concerned about when planning long-term investment.
If you are a surfing investor, this is not a serious problem. But if you invest long distances, please read the commitment of the investor, because some projects the owner committed to extend the extension of 20 years of use.
Risk of handover progress: Unlike apartment investment, the risk of handover progresses to the Shophouse product line has serious consequences for long-term investors. Investors who have been delayed by the project for several months may cause the investor to suffer heavy losses on alternative maintenance, business or rental income.
Therefore, let’s find out about the project owner’s financial strength and the quality of the project … to study the previous projects invested by this investor. Are there any projects that are slow to progress? How long is the delay? Commitment to progress like?
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