Investing in real estate for rent is one of the trends that are attracting many investors today. This trend opens the door for individuals and businesses to buy their own home without a loan or make more money from real estate.
The real estate for rent is the trend “fever”
In a recent report by Savills, comparing the rental yields of apartments in Vietnam to neighboring markets has yielded a surprising result. Vietnam is the leading country in Southeast Asia for apartment rental yields. This number is twice that of Singapore and 1.7 times that of Bangkok, Manila. This shows that the amount of rental properties is a strong development trend.
According to statistics, at present 80% of people are in need of housing is not eligible for financial. Every year, the number of people flocking to large cities tends to increase, along with the graduation students tend to stay in the city so the demand for rental housing is increasing. In addition, the expansion and development of foreign businesses in major cities and neighboring provinces has led to the overseas client segment becoming a major source of supply for the rental property market.
That is not to mention every year, the number of tourists increased significantly both domestic and foreign. Demand for high season accommodation in the tourist areas is overloaded, so the demand for real estate rental will grow again. The appearance of start-up companies, the need to rent space is essential, which is the potential to promote the market for rent space, townhouses …
As such, the business, investment real estate leasing model is the option to create smart cash flow at the moment. From a small amount of capital, investors can carry out real estate leasing procedures from the builders and then connect to the demanding and pocketable units generated by their profits. Then, investors can actively control the cash flow and find out how to exploit real estate to the most effective.
Some real estate investors should pay attention to rent
Not everyone can become a rental property investor: Real estate rental also has its own characteristics of management, planning, implementation of business strategies, risk management … So let Think carefully and ask yourself if you really have the ability to solve all these problems.
Determine that rental investment is buying the future cash flow: There should be a wise decision and a long-term vision in the future, evaluating the value of the cash flow generated by the rental of the property. .
Position is extremely important: For those who want to invest in real estate for rent, it is important to pay attention to the location factor, one of the factors more important than anything. Plots of land located in a prime location means that the value of the leased property will be improved. The location of gold must focus on factors such as: in the center, traffic synchronous, near the commercial center, utilities ..
Use financial leverage in a rational way: When financial availability is not enough, you have to borrow more money, that is called leverage. However, high loans mean big financial leverage, if the right decision, it will bring great profits in the future, the opposite. To be safe, economists have warned that loans should not exceed 30% of the value of investment property.
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